Today, Repsol YPF held its
Annual General Shareholders Meeting for the 1999 financial year. In his speech,
the Chairman and CEO, Alfonso Cortina, explained last year�s income statement.
He also commented on the economic environment and market conditions for oil,
making special mention of the new dimension achieved by Repsol YPF following the
integration of the two companies, and summarised for our shareholders the
corporation�s core strategy for the future.
Looking back over 1999,
Alfonso Cortina pointed out that, �It has been a specially important year in the
corporate history of Repsol. The acquisition of YPF has given us a new dimension
and positioning in the product lines and markets we operate, and more than
doubled our company value. This operation marked the end of an era for Repsol
and YPF as separate companies, and now Repsol YPF has crossed the threshold to a
new future full of promise. The progression has been made from two important
local or regional companies to a truly multinational
corporation.�
Alfonso Cortina referred to the Repsol YPF integration
process, which has reached completion in less than one year, noting that, �We
chose to treat the integration as a merger between equals, and this spirit
presides over the change in the company name to Repsol YPF, as an explicit sign
of the new corporate reality.
In his opinion, the complementary nature of
the business mix and professionals in both companies, with hardly any redundant
activities, and similar corporate strategies, �have made it possible for Repsol
YPF to function as a single strategic and operating unit within a very short
time.�
Mr. Cortina then turned his attention to the liberalisation
measures recently announced by the government, and stated, �This free market
presents a new opportunity for the future, and we will take it�. He reiterated
earlier declarations that Repsol YPF is in favour of any measure to strengthen
the free market, in which the government�s aims are compatible with Repsol YPF
strategic business targets.
Referring to the new economy, Cortina
declared that Repsol YPF concedes great importance to its presence in
e-commerce. The new undertakings in this field include the �Repsol-ypf.com�
web-site presented on June 20th last, which pioneers B2B (business to business)
and B2C (business to customer) Internet trading in the oil
sector.
Looking to the future, the Repsol YPF CEO explained that core
strategy hangs on the following aspects: strong physical and economic growth in
exploration & production and gas & power linked to own resources;
upgrading of the downstream oil and gas activity to increase added value on
refining and marketing in Spain and Argentina; and large expansion in Latin
America with special emphasis on the Southern Cone.
Moving on to the
resolutions submitted for approval to the Annual General Shareholders Meeting,
he mentioned those requiring a change in company By-laws, for which a sufficient
quorum is necessary. An amendment in the method of remuneration to company
members will also be proposed, together with capital increases to cover two PSOs
(Astra and YPF) and a private offering (Repsol Comercial), and authorisation to
issue financial instruments which would provide greater flexibility in the
refinancing programmes designed to give the company additional financial
stability.
The Annual General Shareholders Meeting approved an overall
dividend of 0.42 euros per share, representing a 49.4% pay-out on the company�s
1999 net income. Payment of this dividend will be made effective from July 13th
2000, onwards.
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