| Work Detail |
Christina Verchere, CEO of OMV Petrom, highlighted the company’s strong operational performance in 2024. Hydrocarbon production exceeded expectations, marking the smallest decline in the past seven years, while the refinery and power plant operated at high capacity. As a result, OMV Petrom played a significant role in Romania’s energy supply, meeting approximately one-third of the country’s fuel and gas demand and contributing 10% to electricity generation. The clean CCS operational result for 2024 declined to RON 5.7 billion due to a lower-priced environment and the negative impact of regulatory changes affecting natural gas and electricity. These regulatory adjustments led to a negative G&P result in the second and fourth quarters of the year. Significant progress was made in implementing OMV Petrom’s Strategy 2030, which focuses on low-carbon energy production. In 2024 alone, the company invested RON 7.2 billion to advance the Neptun Deep development, renewable energy projects, and the expansion of its electro-mobility network. Additionally, OMV Petrom remained one of the largest contributors to Romania’s state budget, providing RON 16 billion in taxes and dividends. Looking ahead, 2025 is expected to be a challenging and volatile year due to fiscal and regulatory uncertainties. However, assuming a stable and competitive fiscal and regulatory environment, OMV Petrom anticipates achieving a record-high investment level of approximately RON 8 billion, further strengthening Romania’s energy security and economic growth. Highlights FY2024 Group Clean CCS Operating Result at RON 5.7 bn, 32% lower, lower commodity prices and the negative impact from the regulatory environment on the G&P business Net income at RON 4.2 bn vs. RON 4 bn in FY2023 CAPEX increased by 52% at RON 7.2 bn vs RON 4.7 bn in FY2023 State budget contribution at RON ~16.1 bn, similar to FY2023 Dividends: base dividend of RON 0.0413/share paid in June 2024 and a special dividend of RON 0.0300/share paid in September, translating into a total dividend yield of 12.4% Base dividend proposal for 2024: RON 0.0444/share, up 7.5% yoy, translating into a dividend yield of 6.3% and payout ratio from 2024 OCF of 42.8%.Exploration and Production Clean Operating Result at RON 3 bn, 29% lower, mainly driven by lower oil and gas prices and hydrocarbon sales volumes Production above expectations at 109 kboe/d vs. 113 kboe/d, a decrease of 3.8%, the lowest in the last 7 years. This was due to good results from workovers and drilling partially mitigating natural decline Production cost increased by 2% to USD 16.2/boe, due to lower production available for sale. Refining and Marketing Clean CCS Operating Result at RON 2.4 bn is only marginally lower compared to RON 2.5 bn in FY2023, reflecting lower refining margins largely offset by sales channel performance OMV Petrom indicator refining margin at USD 9.2/bbl, 34% lower, as a result of weaker spreads for diesel and gasoline Refinery utilization rate at 97% vs. 80% in FY2023, as 2023 was impacted by the planned turnaround; significantly above the European average Total refined product sales are higher by 6%. Romanian retail volumes increased by ~4%, supported by higher demand. Gas and Power Clean Operating Result at RON ~0.4 bn vs RON 2.1 bn in FY2023; despite the good operational performance, the results were heavily impacted by changes in legislation and market dynamics Gas sales volumes are down 7%, on lower volumes to wholesalers and end-users and higher offtake by the Brazi power plant Brazi power plant’s net electrical output of 4.9 TWh vs 4.2 TWh in FY2023, covering 10% of Romania’s power production. This was the second-highest level achieved by the power plant since the start of operations, after the record set in 2022. Delivering on Strategy 2030 Grow regional gas Neptun Deep: progressed according to plan, with 90% of the budget already committed. The construction of the production platform advanced at the Saipem sites located in Indonesia and Italy. Han Asparuh: OMV Petrom took over TotalEnergies’ interest in the Han Asparuh offshore block in Bulgaria, where OMV Petrom is the operator. OMV Petrom partnered with NewMed Energy to advance exploration in the block. Transition to low and zero carbon Renewable power: closed the transactions with Renovatio and Janzten Renewables for total solar and wind capacities of ~1.9 GW. These, together with the announced partnership with CE Oltenia and our own photovoltaic project at I?alni?a, result in a portfolio of 2.4 GW Sustainable fuels: the final investment decision taken for the construction of a SAF/HVO plant and two green hydrogen units, positioning Petrobrazi to become the first major producer of sustainable fuels in SEE. The company also made steps to secure raw materials to produce sustainable fuels: signed contracts to purchase vegetable oil from Expur and acquired a 50% stake in Respira Verde, the largest collector and processor of used cooking oil in the country Electro-mobility: closed transaction with Renovatio contributing to the company having the largest EV charging network in Romania, with around 900 charging points at end-2024.Optimize traditional business E&P: OMV Petrom premiered a new automatic drilling technology in Romania R&M: largest crude oil storage tank in Romania was commissioned at the Petrobrazi refinery G&P: OMV Petrom expanded its natural gas supply activities in Bulgaria, addressing end customers An innovative carbon capture and utilization technology was tested at Petrobrazi in the ConsenCUS project. Also, OMV Petrom became an equity partner in InnoEnergy, a unique and trusted ecosystem to fast-track innovation towards the energy transition. Moreover, the company partnered with Hycamite TCD Technologies, a pioneering deep-tech startup specializing in clean hydrogen and solid carbon production. Social projects supported directly and through OMV Petrom Foundation: ~26 mn EUR in the areas of health, education, and environment. |
