In H1 2022, OMV Petrom recorded sales revenue growth of 153% YoY, EBITDA growth of 153% YoY, and a net income of RON 4.65bn, an increase of 374% YoY.

Sales revenue increased by 153% YoY, and amounted to RON 25.6bn, mainly supported by higher commodity prices and higher sale volumes of petroleum products and electricity. The Refining and Marketing segment represented 55% of the total consolidated sales, while the Gas and Power segment accounted for 44%. Sales from the Exploration and Production segment accounted for only 0.1%, following the divestment of Kazakhstan subsidiaries in Q2 2021.

Following the growth in sales, operating expenses also increased, growing by 123% YoY and amounted to RON 19.9bn. The largest contributions to this increase came from higher commodity prices in terms of oil and gas, whose purchase costs increased to RON 11.69bn, an increase of 212% YoY. Meanwhile, production and operating expenses increased to 2.27bn, an increase of 21% YoY, while Production and similar taxes increased to RON 3.2bn, an increase of 557% YoY, mainly as a result of higher volumes.

EBITDA increased significantly, growing by 153% YoY and amounting to RON 7.3bn. This was due to a higher contribution of all business segments, following an increase in prices in Exploration and Production segment, significantly higher refining margins in the Refining and Marketing segment, as well as strong margins on gas from storage and third-party transactions in the Gas and Power segment. The aforementioned increased purchases (in terms of both volumes and prices for all products) and higher Exploration and Production taxation also had an influence on the EBITDA result.

Interest income amounted to RON 229.9m, an increase of 229% YoY, while interest expenses increased by 182% YoY, amounting to RON 395m. The faster interest expenses growth is due to the discounting of receivables, which was partially offset by higher interest income on bank deposits. Combined, this resulted in a net financial result of RON 172.9m, an increase of 140% YoY.

The income tax amounted to RON 899m, representing an increase of 383% YoY, with an effective tax rate of 16%, roughly the same on a YoY basis. All of this combined resulted in the net income to the majority of RON 4.65bn, an increase of 374% YoY.

OMV Petrom key financials (H1 2022 vs. H1 2021, RONm)

Moving on to the balance sheet, as compared to the end of 2021, non-current assets decreased by 2% YoY, and amounted to RON 31.86bn, mainly as a result of a decrease in property, plant and equipment, as depreciation and the decrease in decommissioning assets following reassessment exceeded the additions during the period. Meanwhile, current assets increased by 35% YoY, and amounted to RON 23.4bn, mainly as a result of higher cash and cash equivalents, higher inventories following the increase in volumes and in unit costs, as well as higher trade receivables following higher sales, and higher fin. assets, mainly in relation to derivatives. In total, this would mean that assets amounted to RON 55.25bn, an increase of 11% YoY.

Equity increased by 8% YoY, and amounted to RON 36.9bn, mainly as a result of the net profit generated in the current period, which was partially offset by the dividend distribution for the financial year 2021. Total liabilities increased to RON 18.3bn, growing by 16% YoY, mainly as a result of higher current liabilities.

Finally, CAPEX amounted to RON 1.39bn in H1 2022, an increase of 15% YoY. Investments in Exploration and Production amounted to RON 1.02bn, accounting for 74% of the Group’s total CAPEX. Refining and Marketing investments amounted to RON 261m, while Gas and Power investments amounted to RON 92m, with the majority of investments being directed to the planned outage at the Brazi power plant.