In 2024, OMV Petrom recorded an 8% YoY revenue decline, a 32% decrease in the Clean CCS Operating Result and a 4% increase in net income attributable to the majority, amounting to RON 4.2bn. In Q4 2024, revenue fell 12% YoY, while the Clean CCS Operating Result decreased 57% YoY. Net income to majority dropped 82% compared to the same period previous year, reaching RON 263m. The Company also proposed a base dividend of RON 0.0444 per share, implying a dividend yield of 6.1%, and announced its intention to propose a special dividend in 2025.
Financial Performance
OMV Petrom reported sales revenue of RON 35.8bn in 2024, an 8% decline YoY, and RON 9.1bn in Q4, down 12% YoY. The yearly decline was primarily due to lower commodity prices and lower sales volumes of natural gas, partially offset by higher electricity sales volumes. In terms of sales mix, Refining and Marketing segment accounted for 75% of total consolidated sales, Gas and Power segment represented 25%, while sales from Exploration and Production segment made up only 0.2% of total sales. However, it should be noted that Exploration and Production segment is mostly intra-group sales rather than third-party sales.
Q4 results were negatively impacted by lower prices of natural gas and petroleum products, along with lower volumes of electricity and petroleum products. However, this was partially compensated by higher electricity prices and higher sales volumes of natural gas. As for the sales mix in the fourth quarter, R&M segment represented 69% of total consolidated sales, G&P segment accounted for 31%, while E&P segment remains minor with 0.2% of total.
Next, the Clean Current Cost of Supply (CCS) Operating Result, which excludes special items, inventory effects and temporary hedging effects, amounted to RON 5.7bn in 2024, a 32% YoY decline, and RON 955m in Q4, a 57% decrease.
The decrease in 2024 came as a result of lower contributions across all business segments mainly triggered by declining power margins in the G&P segment due to legislative changes, as well as falling gas margins and a high base effect from the reversal of 2023 provision. Moreover, E&P segment’s profitability declined due to lower sales volumes, lower prices and specific taxes, as well as lower purchases resulting from reduced natural gas acquisitions and traded petroleum products. This was partially offset by higher crude oil imports. R&M segment’s contribution remained broadly stable.
In the fourth quarter, the Clean CCS Operating Result decline was similarly due to negative contributions from G&P and E&P segments, while R&M segment’s lower refining and sales channel margins additionally made a negative impact. A positive contribution of RON 90m was made from natural gas extracted from storage.
Meanwhile, the reported operating results decreased by 36% to RON 4.9bn in 2024, mainly driven by less favorable market conditions and impairments in Exploration and Production segment recorded in Q4 2024.
Net income attributable to shareholders amounted to RON 4.2bn in 2024, a 4% increase YoY, and RON 263m in Q4, an 82% decrease compared to the same period previous year.
OMV Petrom key financials (2023 vs Preliminary 2024, RONm)
Source: OMV Petrom, InterCapital Research
Capital expenditures amounted to RON 7.2bn in 2024, an increase of 52% YoY, and RON 2.4bn in the fourth quarter, up 81% YoY, mainly directed to Exploration and Production segment (RON 4.5bn) driven by increased investments in Neptun Deep. The inorganic CAPEX of RON 908m related to several M&A transactions closed in 2024, with a focus on renewable power and e-mobility.
Dividends
OMV Petrom also proposed the base dividend of RON 0.0444 per share. At the share price before the announcement, this would imply a dividend yield of 6.1%. This also represents a 7.5% YoY increase, in the middle of the 5-10% range stated in the dividend guidance. Furthermore, OMV Petrom also announced the intention to propose a special dividend in 2024. If the base dividend is approved by the Audit Committee and the SB, it will be voted upon in April 2025’s GSM. Meanwhile, the special dividend will be subject to a future GSM.
OMV Petrom dividend per share (left, RON) and dividend yield (right, %) (2013-2025)
Source: OMV Petrom, InterCapital Research
Outlook for 2025
For 2025, OMV expects the average Brent oil price to be around USD 75/bbl, with a refining margin to range between USD 7 – 8/bbl. In Romania, demand for fuels is expected to be slightly above 2024 level, while the gas and power demand to be stable YoY. Legislative measures negatively impacting Company’s financials are due to expire end-March 2025, but currently there are public discussions regarding the potential extension of the applicability of the regulatory gas and power framework in 2025.
For organic CAPEX, it is estimated at RON 8bn, with increased investments mainly dedicated to Neptun Deep as well as low and zero carbon projects, mostly SAF/HVO, renewables and EV charging points. Additional inorganic CAPEX related is estimated at up to RON 0.6bn, bringing the total CAPEX to RON 8.6bn.
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