During 9M 2024, OMV Petrom recorded a revenue decline of 6% YoY, an EBIT decrease of 19%, and a net income to majority of RON 3.9bn, an increase of 54% YoY.
Last week, OMV Petrom, one of the largest energy, oil, and gas companies in Romania published its 9M 2024 results, and in this overview, we’re bringing you the most important points. Starting off at the top, the Group’s revenue declined by 6% YoY, amounting to RON 26.7bn during 9M, and by 11% YoY to RON 9.4bn during Q3 2024.
The revenue was negatively influenced by the lower prices and sales volumes of natural gas and lower sales volumes of electricity, which was partially offset by the higher prices of electricity. In terms of segments, the Refining and Marketing segment represented 75% of total consolidated sales, the Gas and Power segment accounted for 24%, while the Exploration and Production segment accounted for only 0.1%, as this represents intra-group sales.
Inside the largest category, Refining and Marketing, OMV Petrom recorded a 35% power refining margin, amounting to app. USD 9.75/bbl. This came as a result of weaker gasoline and middle distillate crack spreads, as the global demand for transportation fuels remains weak. The Gas and Power segment meanwhile, had a reduced contribution this year to the total, due to lower volumes and margins. In fact, gas sale volumes amounted to 30.55 TWh in 9M 2024, a reduction of 11% YoY. Lastly, in the Exploration and Production segment, the average Brent price remained roughly the same YoY, at app. USD 82.8/bbl, a 1% increase YoY. The total hydrocarbon production was slightly lower as well, at 190.7 kboe/d, a 4% YoY reduction. This reflected planned maintenance activities, leading to lower production in the main fields, which was partially offset by higher production from workovers and new wells.
Moving on, the Clean current cost of supply (CCS) op. result, an item adjusted for special items amounted to RON 4.8bn during 9M, a 23% reduction YoY. This came as a result of lower contributions from all business segments. The lower contribution of Gas and Power was due to declining gas and power margins, the lower contribution of Exploration and Production was mainly due to a decrease in oil and gas prices as well as lower volumes available for sale, while the decrease in contribution from Refining and Marketing segment was mainly due to lower refining margins. Meanwhile, the reported operating result (EBIT) amounted to RON 4.5bn, a 19% reduction YoY.
Total operating expenses amounted to RON 22.4bn, a 4% reduction YoY, mainly as a result of lower production and similar taxes, which halved to RON 971bn, as well as lower purchases, which declined by 7% YoY to RON 12.6bn. All other categories increased by double-digit levels, leading to the aforementioned slight decrease in OPEX.
In terms of the net financial result, it amounted to RON 143m, declining by 35% YoY, as a result of lower interest income, which was partially offset by lower interest expense. Finally, the net income to majority amounted to RON 3.9bn, growing by 54% YoY, but this increase came mostly due to the solidarity contribution in 2023, which was not present in 2024. This would also imply a net income margin of 14.7%, an increase of 5.8 p.p. YoY.
OMV Petrom key financials (9M 2024 vs. 9M 2023, RONm)
Source: OMV Petrom, InterCapital Research
OMV also commented on its outlook for FY 2024. They expect an average Brent oil price of USD 80-85/bbl, with the refining margin at USD 9/bbl, a decrease from previous guidance’s USD 10/bbl. In Romania, the Group expects the demand for retail fuels to be above the 2023 level, while the demand for gas and power to be stable YoY. Regarding the legislative measures, in place until the end of March 2025, the Group expects a negative impact in high double-digit million euros. Furthermore, a tax on turnover implemented on 1 January 2024, should have an estimated total annual impact of below EUR 50m in 2024.
In terms of CAPEX, the organic CAPEX is estimated at RON 6.5bn in 2024 (2023: RON 4.7bn), with increased YoY investments mainly to Neptun Deep as well as low and zero carbon projects, renewables, and charging points for EVs.
The entire detailed report can be accessed here.
