In 2020 OMV Petrom recorded a decrease in sales of 23%, a decrease in operating profit of 65% and a decrease in net profit of 64.5%.
OMV Petrom published their FY 2020 preliminary report. According to it, consolidated sales for 2020 amounted to RON 19.7bn, recording 23% drop YoY. The decrease in sales is due to the negative evolution of the commodity prices and lower sales volumes for petroleum products and electricity. Out of total consolidated sales, Downstream Oil accounted for 69%, Downstream Gas for 29% and Upstream for approximately 2%.
Clean CCS Operating result decreased by 50% (versus FY 2019) to RON 2.3bn, mainly due to lower commodity prices. The negative evolution in Upstream was partly compensated by higher positive contribution from Downstream, mainly deriving from the power business and gains from middle distillate margin hedges.
Special items comprise net charges of RON -425m, mainly related to net impairments booked in Q3 2020 in Upstream, triggered by the updated price assumptions, and full reversal of impairments for Brazi gas-fired power plant, following revision of the long-term power and CO2 price assumptions. Inventory holding losses amounted to RON -396m in 2020.
Operating profit for 2020 decreased to RON 1.47bn, -65% compared to FY 2019. This drop is mainly driven by the unfavourable market environment, as the lower prices and the COVID-19 crisis had a negative impact on the industry, and by the net impairments triggered by the revision of price assumptions.
Net financial result slightly decreased to RON 12m (versus RON 32m in 2019). As a result, profit before tax for 2020 was RON 1.48bn, lower compared to RON 4.28bn in 2019.
OMV Petrom ended 2020 with net profit of RON 1.29bn, representing a decrease of 64.5% YoY.
DIVIDEND PROPOSAL
Based on the above stated results, the Executive Board of OMV Petrom proposed a gross dividend of RON 0.031 per share, which would be the same amount as last year. The dividend translates to a yield of 7.8% at the current share price. Note that ex-date was not stated. The Executive Board’s proposal for the distribution of dividends for the FY 2020 will be submitted for approval to the April 2021 Ordinary General Meeting of Shareholders after the approval by the Supervisory Board, following Audit Committee review.
