OMV Petrom has published on Wednesday its preliminary results for Q4 and January-December 2017.
OMV Petrom Group posts a net profit of RON 2,489 billion, almost 2.4 times (140%), in 2017 against the result in 2016 of RON 1.038 billion, according to the unaudited financial results, released on Wednesday by the company.
The net profit attributable to OMV Petrom shareholders last year was of RON 2,491 billion, by 139% higher than in the same period in 2016. The profit per share amounted to RON 0.0440.
The group’s sales in 2017 totalled RON 19,435 billion, up by 17% against 2016, when it reached RON 16,647 billion. Sales from Downstream Oil accounted for 74% of total sales, Downstream Gas sales accounted for 23%, and Upstream for approximately 2%.
Mariana Gheorghe, CEO of OMV Petrom S.A. said:
“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.
The 2017 Clean CCS Operating Result almost doubled yoy to RON 3.3 bn, 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 RON 6 bn in 2017. During the year, we made investments of RON 3 bn and paid dividends of RON 0.8 bn, resulting in a free cash flow after dividends of RON 2.7 bn.
For 2018, we plan CAPEX at RON 3.7 bn, mainly for ramping up our 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.
Based on the preliminary results and strong free cash flow achieved in 2017, the Executive Board proposes a dividend of RON 0.020/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.”