OMV Petrom registered consolidated sales of RON19.435 billion in 2017, up 17% from 2016, due to rising sales on all segments.
„The 2017 Clean CCS Operating Result almost doubled yoy to RON 3.3 billion, with Upstream and Downstream contributing almost equally. Upstream benefitted from better realized prices, lower OPEX and depreciation. The Downstream Oil result reflected better refining margins and increased demand. The Downstream Gas result mainly reflected strong spark spreads and the insurance revenues related to the Brazi power plant. All the above led to an operating cash flow of RON6 billion in 2017. During the year, we made investments of RON3 billion and paid dividends of RON 0.8 billion, resulting in a free cash flow after dividends of RON2.7 billion”, the company said in a statement.
“For 2018, the company envisages investments of RON3.7 billion, mainly for ramping up drilling activity, the Neptun project, the scheduled full-site refinery turnaround and the Polyfuel project. While our focus remains on extracting the highest value from the existing Upstream portfolio, we estimate the daily average production decline to reach 4% yoy, excluding divestments”, OMV Petrom CEO Mariana Gheorghe said in a statement.
Based on the preliminary results and strong free cash flow achieved in 2017, the Executive Board proposes a dividend of RON0.020/share for the 2017 financial year, 33% up yoy, implying a 45% payout ratio. The final dividend proposal is to be submitted for approval by both the Supervisory Board and the subsequent April 2018 GMS.
“In Q4/17 we benefited from increased demand for electricity and fuels as well as higher commodity prices; against this backdrop, the refining margins were lower by USD 1/bbl yoy. We continued our cost optimization initiatives; however, our Q4/17 results were impacted by higher exploration expenses and one-time costs in connection with the renegotiated Collective Labor Agreement”, Gheorghe also said.
The financial results are unaudited and represent OMV Petrom Group’s consolidated results prepared according to IFRS.
Early January 2018, OMV Petrom’s supervisory board appointed Christina Verchere as the new CEO and board president, after Gheorghe had waived her mandate. Gheorghe was appointed CEO in 2006. Her waiver shall become effective on the date when her successor takes office, in May 2018.