In 2019, the company recorded an increase in sales of 13% YoY, decrease in EBIT of 19% and a decrease in net profit of 11%. OMV Petrom also proposed a dividend of RON 0.031 per share (DY 7.3%).
OMV Petrom published their FY 2019 preliminary report. According to it, sales for 2019 amounted to RON 25.5bn representing an increase of 13%. Such a high increase could be attributed to the higher sales volumes and prices for natural gas, higher sales volumes for petroleum products and higher prices for electricity, partially compensated by lower selling prices for petroleum products. Of the consolidated sales, Downstream Oil accounts for 72% of, Downstream Gas for 26% and Upstream for approximately 2%.
Clean CCS Operating result decreased by 5% to RON 4.57bn, reflecting the unfavorable oil price environment and the decrease in refining margin.
Special items comprise net charges of RON -370m, mainly related to future estimated soil remediation costs in relation to Arpechim refinery booked in Q3 2019 and an impairment of assets held for sale in Upstream booked in Q4 2019, partly offset by temporary positive effects from forward contracts in Downstream Gas. Inventory holding gains amounted to RON 42m in 2019.
Operating profit for the year 2019 decreased by 19% to RON 4.24bn. Such a high drop came mainly on the back of unfavorable market environment as well as net special charges in 2019.
Going further down the P&L, net financial result improved from a loss of RON -299m in 2018 to RON 32m. The result can be attributed mainly to the positive impact from the discounting of receivables, higher interest income on bank deposits and interest income in relation to clarification of a tax-related topic recognized in Q1 2019. As a result, the profit before tax for 2019 of RON 4.28bn decreased compared to 2018 EBT of RON 4.91bn.
In 2019, the OMV Petrom recorded a net profit of 3.63bn representing a decrease of 11% YoY.
Yesterday, OMV Petrom also published an announcement on the Bucharest Stock Exchange proposing a dividend of RON 0.031 per share, which would represent a dividend increase for the 3rd consecutive year. The dividend translates to a yield of 7.3%, at the current share price. Note that the ex-date was not stated.
The Executive Board’s final proposal for the distribution of dividends for the financial year 2019 will be submitted for approval to the April 2020 Ordinary General Meeting of Shareholders after the approval by the Supervisory Board.
In the graphs below, we are bringing you an overview of OMV Petrom’s historic dividend payout and dividend yield.