OMV Petrom published their FY 2021 preliminary report. According to it, consolidated sales for 2021 amounted to RON 26bn, recording a double-digit increase of 31.9% YoY. The increase in sales is due to the higher sales of petroleum products in terms of both prices and volume.
Consolidated sales for 2021 amounted to RON 26bn, recording a double-digit increase of 31.9% YoY. The increase in sales is due to the higher sales of petroleum products in terms of both prices and volume.Sales revenues were partly offset by lower sales volumes of natural gas and electricity. Out of total consolidated sales, Downstream Oil accounted for 63%, Downstream Gas for 37% and Upstream for approximately 0.2%.
Clean CCS Operating result increased by 90% (versus FY 2020) to RON 4.4bn, mainly due to an increase in crude oil prices in the Upstream segment, much higher refining margins in the Downstream Oil segment and better performance of the power activity in the Downstream Gas segment.
Special items comprise net charges of RON -129m, mainly driven by the net temporary losses from power forward contracts in Downstream Gas. Inventory holding gains amounted to RON 122m, mainly driven by an increase in crude oil prices.
Operating profit for 2021 reported an increase of more than 2x, compared to FY 2020. This increase is mainly driven by the favorable market environment. This increase was partly offset by the lower prices as 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 was down to RON -311m (versus 2020 gain of RON 12m) mainly due to higher interest expenses in relation to the discounting of receivables and to the one-off positive effect in 2020. As a result, profit before tax for 2020 was RON 3.4bn – 2.3x higher than RON 1.48bn achieved in 2020.
OMV Petrom ended 2021 with net profit of RON 2.86bn, representing an increase of 121.8% YoY.
DIVIDEND PROPOSAL
Based on the above-stated results, the Executive Board of OMV Petrom proposed a gross dividend of RON 0.0341 per share, which represents a 10% YoY increase. The dividend translates to a yield of 7.02% at the current share price. Note that the ex-date was not stated. The Executive Board’s proposal for the distribution of dividends for the FY 2021 will be submitted for approval to the April 2022 Ordinary General Meeting of Shareholders after the approval by the Supervisory Board, following Audit Committee review.
