Gov't rejects Repsol-YPF's dividend reinvestment plan

During a crucial Repsol-YPF board meeting held at the oil giant offices in Puerto Madero, government officials rejected a proposal brought by Repsol CEO Antonio Brufau to recapitalize the company by returning last two years dividends to shareholders.

Planning Ministry’s coordinator and State representative at the company’s board Roberto Baratta was partm of the meeting along with Economy Deputy-Minister Axel Kicillof, and Energy Secretary Daniel Cameron. 

Afterwards, Kicillof told reporters that "there was a big controversy generated between us and the company's direction as they rejected our proposal of creating an investment fund with the dividends of the past two years."

Thus, today’s meeting was crucial as to define what is going to be done with the company’s last two year’s revenues as during last Board meeting held on March 8, Baratta had refused to approve last year’s balance sheet and asked for using the last two years dividends to create an investment fund or reserve to be reinvested in the exploration for new hydrocarbon reserves."

Repsol-YPF is currently under government pressure to increase oil and natural gas output in order to reduce fuel imports and avoid a trade surplus drop.

Last week, Planning Minister Julio de Vido bashed Spain’s Industry Minister José Manuel Soria by saying though oil company YPF is run by Spanish investors it should not be considered an asset of the European country.