Omv Petrom announces its Strategy 2030, focusing on transformation for a lower carbon future, stronger commitment to dividend growth.

Yesterday, OMV Petrom announced its Strategy 2030. Through this strategy, the Company aims to transform itself into a lower carbon integrated energy company. To achieve this, they plan to invest EUR 11bn by 2030, with over 35% (EUR 3.7bn) of the investment going to low and zero-carbon opportunities.

The 2030 strategy is built on three directions: Transition to low and zero-carbon, growth of regional gas, and optimization of traditional business. The strategy is expected to have four major outcomes. To drive significant growth in cash flows, achieve a competitive dividend policy, make a material impact on the transition to lower carbon business and reduce the carbon intensity throughout all business segments and strengthen Romania’s and South-East Europe’s security of supply and the EU’s energy resilience.

In their transition to low and zero-carbon, the Company states their goal is net-zero operations by 2050. To achieve this, they plan to decarbonize current operations, expand the lower carbon gas business, and pursue low and zero-carbon business opportunities.

To drive the growth of regional gas, the Company continues exploration which focuses on the Black Sea area, which is estimated to hold significant resources, through its Neptun Deep development project. The company’s estimate in terms of recoverable resources is around 50 bcm and the CAPEX is expected to be less than EUR 2bn.

To optimize its traditional business, the Company aims to focus on “value over volume and operational excellence in all business segments”. The share of total CAPEX allocated to traditional assets will decrease from 100% to around 45% by 2030. At the same time, The Company expects that natural gas with constitute around 70% of the hydrocarbon production by 2030.

Financial targets for 2030 include robust cash generation and a competitive dividend policy. To drive this, the Company announced a stronger commitment to dividend growth, namely by increasing the base dividend per share by 5-10% per year on average by 2030. Special dividends may also be distributed if the market favors it and the CAPEX is fully funded. Total dividends are estimated to represent approx. 40% of the Company’s operating cash flows for 2022-2030.