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Published July 31, 2024

OMV Petrom Group results [1] for January – June 2024 including interim unaudited condensed consolidated financial statements as of and for the period ended June 30, 2024

Christina Verchere, CEO OMV Petrom: “In the first 6 months we had a good performance, supported by our integrated business model, recovering market demand for our products and higher utilization of our downstream assets. However, lower gas and power prices combined with lower hydrocarbon volumes for sale led to a 15% lower Clean CCS operating result of approximately 3 bn lei. During this period, we contributed around 8 bn lei to the Romanian State budget, including dividends, and invested approximately 2.4 bn lei.

Our main role is to provide energy and we have done this successfully: new wells and workovers had a good contribution to our hydrocarbon production, we have placed high quantities of natural gas in storage meeting the legal obligation, the refinery continues to operate above the EU average and Brazi power plant is a high contributor to the stability of the Romanian electricity market. In parallel, we continued Neptun Deep development, we advanced with our projects in renewable energy and electro-mobility, and we took the final investment decision for a SAF/HVO production unit. With this progress and planned 2024 investments of up to 8 bn lei, we are well positioned to lead the energy transition in Romania and South-East Europe.”

Highlights 6m/24[2]

Group

  • Clean CCS Operating Result at RON 3.1 bn, 15% below the 6m/23 result, mainly due to lower gas and power prices and lower hydrocarbons sales, partially offset by higher refinery utilization and good performance of the sales channels  
  • Net income increased to RON 2.6 bn vs. RON 0.9 bn in 6m/23
  • CAPEX at RON 2.4 bn, 1% higher, mainly directed to Exploration & Production  
  • State budget contribution at RON ~8.3 bn, slightly below the RON 8.8 bn in 6m/23
  • Dividends: base dividend of RON 0.0413/share paid in June 2024 and special dividend of RON 0.0300/share approved to be paid starting September; this translates into a total dividend yield of 12.4%.

Exploration and Production

  • Clean Operating Result at RON 1.6 bn vs. RON 2.1 bn in 6m/23, mainly driven by lower gas prices and hydrocarbon sales volumes
  • Good results from new wells and workovers partially mitigated natural decline resulting in a production decrease of 3% yoy
  • Production cost increased by 6% to USD ~15.8/boe, due to higher personnel costs and lower production available for sale

Refining and Marketing

  • Clean CCS Operating Result at RON ~1.2 bn from a low base in 6m/23 of RON 758 mn, as a result of the refinery turnaround in Q2/23 and improved performance of the sales channels, partly offset by lower refining margins
  • OMV Petrom indicator refining margin at USD 11/bbl in 6m/24, as a result of weaker spreads for diesel and gasoline and a higher crude oil price environment
  • Refinery utilization rate at 95% vs. 64% in 6m/23, as 2023 was impacted by turnaround, and above EU average
  • High performing sales channels: total refined product sales increased by 14%. Romanian retail increased by 6% versus the same period last year. 

Gas and Power

  • Clean Operating Result at RON ~0.4 bn vs RON 1.2 bn in 6m/23; reflecting a good operational performance in both gas and power business segments, although impacted by changes in legislation and market dynamics
  • Gas sales volumes down 10%, on lower volumes to wholesales, including regulated, and end users, while higher offtake by Brazi power plant
  • Net electrical output of ~2.1 TWh vs ~1 TWh in 6m/23, highest output for a first half-year, Brazi power plant being in a shorter planned outage compared to the same period of 2023.

Key events

  • Strategy 2030: progress announced in June towards transformation for a lower carbon future, while increasing dividend distributions to shareholders.
  • Neptun Deep: progressed according to plan; 1st steel cut ceremony for the topsides in May.
  • Sustainable fuels: final investment decision taken in June for the construction of a SAF/HVO unit and two green hydrogen units, positioning Petrobrazi to become the first major producer of sustainable fuels in SEE. For the two green hydrogen production projects, financing through the National Recovery and Resilience Plan (NRRP) was signed in February. The feedstock for the SAF/HVO unit was secured through a contract with Expur, in June.  
  • Renewable power: transactions with Renovatio signed in January and June to enlarge the company’s portfolio with wind and solar projects totaling more than 1 GW. In May, OMV Petrom and Saint-Gobain Romania signed an agreement for the supply of green power.
  • Electro-mobility: transaction with Renovatio announced in January and closed in May led to a network of more than 750 EV chargers.       
  • Modernize traditional business: largest crude oil storage tank in Romania commissioned at the Petrobrazi refinery in May.   
  • Innovation: testing for an innovative carbon capture and utilization facility at Petrobrazi announced in April.

[1]   The financials are unaudited and represent OMV Petrom Group’s (herein after also referred to as “the Group”) interim consolidated results prepared according to IFRS; all the figures refer to OMV Petrom Group, unless otherwise stated; financials are expressed in RON mn and rounded to the closest integer value, so minor differences may result upon reconciliation; OMV Petrom uses the National Bank of Romania exchange rates for its consolidation process.

[2] All comparisons described relate to the same semester in the previous year except where mentioned otherwise.