Business Forum • 29 October, 2024 at 8:48 AM
The OMV Petrom group posted a net profit of RON 3.9 billion after the first nine months of this year, up 54% compared to the same period last year, but the operating result decreased to RON 4.8 billion, against the backdrop of regulatory interventions in the natural gas and energy sector, according to a press release.
For the third quarter, the company reported a CCA operating result excluding special items of RON 1.6 billion, down 36%, and a CCA net profit attributable to shareholders of the parent company of RON 1.4 billion, down 33%.
In the January-September period, the value of investments amounted to RON 4.8 billion, up 41% compared to the first nine months of 2023, and the contribution to the state budget reached approximately RON 12.5 billion, similar to last year's value last.
According to the quoted press release, the total dividend yield was 12.4%, with the company paying a basic dividend of RON 0.0413/share in June 2024 and a special dividend of RON 0.03/share in September.
"In the first 9 months of the year, market demand for all of our products was slightly higher, with volatile, declining prices for natural gas and electricity and with significantly lower refining margins. Operating profit excluding special items for this period amounted to RON 4.8 billion, supported by the efficiency of our integrated activities, however affected by a high level of regulatory interventions in the natural gas and energy sector. The contribution to the state budget was RON 12.5 billion, similar to last year. We continued to transform our activities for a low-carbon future, the investments reflecting the progress of our strategy. We had record investments for January - September, of which over 40% are allocated to strategic projects such as Neptun Deep, renewable energy and electro-mobility," said Christina Verchere, CEO of OMV Petrom.
In the Exploration and Production segment, OMV Petrom recorded an operating result excluding special items of RON 2.4 billion, 26% lower, mainly determined by the drop in natural gas prices and lower volumes available for sale. In context, the release states that the good results from capital repairs to wells and drilling partially mitigated the natural decline, resulting in a 4% drop in production. The cost of production increased by 5%, to approximately $16/boe (barrel of oil equivalent) due to the decrease in production available for sale and higher costs, partially offset by the positive impact of the exchange rate.
In the Refining and Marketing segment, CCA operating profit excluding special items was around RON 2 billion from a low base of RON 1.8 million last year (determined by the planned overhaul of the refinery in Q2/23). The OMV Petrom refining margin indicator was $9.8/bbl, down 35%, due to weaker gasoline and diesel differentials in a similar oil price environment. Total sales of refined products increased by 9%. Retail activity in Romania increased by 4%.
In the Gas and Energy segment, the operating result excluding special items was RON 400 million, compared to RON 1.6 billion in the same period last year, despite the good operational performance. According to the company, the results were strongly affected by legislative changes and market dynamics. Sales volumes of natural gas decreased by 11%, due to lower volumes to wholesalers and final consumers, but under the conditions of higher consumption of the Brazi power plant.
Net electricity production amounted to approximately 3.6 TWh, compared to 2.5 TWh in the first nine months of last year, representing 9% of Romania's electricity production, the Brazi power plant being in a shorter overhaul compared to 2023.
As for regional gas development, OMV Petrom states that Neptun Deep progressed according to plan and construction of the production platform advanced on the Saipem sites located in Indonesia and Italy. The group also took over TotalEnergies' stake in the Han Asparuh offshore block in Bulgaria, where OMV Petrom is the operator.
In the area of renewable energy, transactions were concluded with Renovatio and Jantzen Renewables for capacities of 1 GW (wind and solar) and 710 MW (solar), respectively. "With the conclusion of these transactions, together with the announced partnership with CE Oltenia and our own project in Işalniţa, our portfolio of wind and solar projects has increased to 2.3 GW, of which 18 MW are in operation. In addition, OMV Petrom and Saint Gobain have signed an agreement to supply green energy", the press release states.
At the same time, the final investment decision was taken for the construction of a SAF/HVO unit (sustainable aviation fuels - SAF; diesel from renewable sources - HVO, n.r.) and two green hydrogen units, positioning Petrobrazi to become the first large producer of sustainable fuels in the south - Eastern Europe. The company also signed a contract to secure its raw material to produce sustainable fuels.
Also, the transaction with Renovatio contributed to the creation by the company of the largest electric vehicle charging network in Romania, with over 800 charging points.
The social projects supported directly and through the OMV Petrom Foundation totaled approximately €22 million in the fields of health, education and the environment.
The company specifies that the financial figures are unaudited and presents the consolidated interim results of the OMV Petrom Group, prepared in accordance with IFRS.