MADRID: Spanish energy company Repsol on Thursday said it would raise its dividend and buy back shares after strong oil and gas prices helped to lift third-quarter profit above pre-pandemic levels.

Global energy prices have soared as economies rebound from the coronavirus crisis, generating cash that can be returned to shareholders and spent on the low-carbon strategies investors are increasingly demanding to contribute to the fight against climate change.

Repsol said net profit of 623 million euros ($722.87 million), its highest quarterly result since the end of 2018, would allow it to boost its 2022 dividend payment by 5% to 0.63 euros per share.

It said it would also reduce the equivalent of 4.9 percent of its capital, buying back 35 million shares and amortising treasury shares.

Profit came well above an average forecast of 582 million euros drawn from a poll of analysts conducted by the company.

Repsol's realisation price per barrel of oil was 68% higher in the three months to September than in the same period last year, while the gas equivalent shot up by almost 114%.

Much larger rival Royal Dutch Shell reported a drop in earnings on Thursday, missing expectations.