The Declaration of Interest should be received by 15 February 2021, while the Financing amount stated in an individual Declaration shall not be less than HRK 1m.

Yesterday, Dalekovod announced a Call for Declaration of Interest in participating in the financial restructuring of the Company. Dalekovod notes that they are considering the possibilities of financial restructuring for the purpose of creating foundations for the improvement of the Company’s financial status, adequate management of the Company’s obligations and proper capitalisation of the Company. The purpose of the Call is to determine the existence of interest in participating in the Project as well as to evaluate and establish the modality of the Project realisation by the Company.

The submitted Declaration should be received by the Company no later than 15 February 2021, while the Financing amount stated in an individual Declaration of Interest shall not be less than HRK 1m.

The Declaration under this Call does not create any legally binding obligations regarding Funding for the Applicant, unless the Applicant themself decides to be legally bound by the Declaration.

Dalekovod is currently traded at HRK 7.22 per share, which puts EV/EBITDA at 6.5x.

To read more about Dalekovod click here.

The news does not come as a surprise given that in March 2020, OMV announced a disposal program of EUR 2bn until the end of 2021.

OMV announced that they intend to sell their Slovenian part of the company, by which they would be leaving the Slovenian market after a close to a 30-year presence. OMV is a relatively large player on the Slovenian market with a market share of roughly 21% (120 service stations). To put things into a perspective, Petrol has 318 service stations as of end September 2020.

The mentioned news does not come as a surprise given that in March 2020, OMV announced a disposal program of EUR 2bn until the end of 2021. The company made progress in 2020 and was able to sign agreements for the three assets of the first divestment package: the sale of the 51% stake in the gas logistics subsidiary Gas Connect Austria, the sale of the OMV filling station business in Germany and the sale of the Upstream business in Kazakhstan. The closing of all three divestments is expected in 2021 – subject to the required regulatory approvals. In total, the first package will lead to a substantial deleveraging effect of more than EUR 1 bn.

According to the CEO of OMV, the reason for the withdrawal from Slovenia lies in the fact that OMV does not sell their own petrol and diesel fuel through the chain of petrol stations in Slovenia and the company stated that they would reduce that.

As a reminder, OMV also left Croatia by selling their stations to CRODUX, which was then recently acquired by Petrol. To read more about the acquisition click here.

 In 2019, OMV Slovenia noted EUR 803m in sales and a net profit of 24.9m.

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.