Repsol seeks purchases with 7-8 percent return rates
MADRID, June 14 (Reuters) - Spanish oil company Repsol is looking for acquisitions in OECD countries that offer an internal rate of return of between 7 percent and 8 percent, Chief Financial Officer Miguel Martinez told El Economista.
Repsol has already said it could spend around $10 billion on acquisitions to boost its exploration and production business and Martinez said Norway, Canada and the United States are its first countries of choice.
"The kind of country that lets you sleep one night a week," Martinez said in an interview with El Economista published on Saturday.
Repsol would be looking for an internal rate of return, a measure of profitability, of about 7 percent from projects in Canada and 8 percent in the United States and Norway, he said, and reiterated the search for purchases that offer a growth platform and fresh know-how.
The firm has a war chest of about $5 billion after settling with Argentina over the 2012 seizure of its YPF arm and has said it could also sell its 30 percent stake of Gas Natural Fenosa, worth about $9 billion, to fund a buy.
Repsol has already paid shareholders a 1-euro-per-share special dividend and Martinez said that given the company's solid financial standing, it could "reformulate" its current policy of offering dividends in shares. (Reporting by Tracy Rucinski; Editing by Elaine Hardcastle)
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