OMV Petrom published its results for Q1 and January-March 2018 on May 3. Main indicators points to clean CCS Operating Result at RON 958 million, up by 25% y.o.y., EPS at RON 0.0151, 38% higher y.o.y., free cash flow at RON 729 million, up 13% y.o.y. and clean CCS ROACE at 10.5%.
The Q1/18 Clean CCS Operating Result increased to RON 958 million, with Upstream contributing around two thirds of the total. Upstream benefitted from higher realized oil and gas prices, fully offsetting the production decline and the negative foreign exchange effects. The Downstream Oil Clean CCS Operating Result declined by 13% yoy due to a decrease of around USD 1/bbl of the refining margin, partly offset by higher retail sales. The Downstream Gas Clean Operating Result more than doubled yoy, mainly driven by improved power business, the report reads.
All the above translated into an operating cash flow of RON 1.8 bn in Q1/18, 42% higher yoy. During the quarter, investments amounted to RON 843 mn, 139% up yoy. The CAPEX increase was mainly driven by a high level of drilling activity and preparations related to the planned refinery turnaround.
In Q1/18 special items comprised a net income of RON 71 mn, while inventory holding gains amounted to RON 50 mn. In Q1/17, net special income amounted to RON 5 mn and inventory holding gains totalled RON 26 million.
The Reported Operating Result for Q1/18 increased to RON 1,080 mn, compared to RON 798 mn in Q1/17, driven mainly by higher sales revenues and cost optimization.
The net financial result slightly deteriorated from a loss of RON (56) mn in Q1/17 to a loss of RON (63) million in Q1/18, reflecting mainly higher FX losses partially offset by the net increase in interest income.
As a result, the profit before tax for Q1/18 amounted to RON 1,017 mn and increased by 37% compared with Q1/17.
Income tax amounted to RON (163) million, while the effective tax rate was 16% in Q1/18 (Q1/17: 17%).
Net income attributable to stockholders was RON 854 mn (Q1/17: RON 619 mn).
Cash flow from operating activities amounted to RON 1,796 mn, 42% higher yoy, mainly driven by the higher operating result. Free cash flow after dividends resulted in a cash inflow of RON 729 mn (Q1/17: RON 646 million).
Capital expenditure increased to RON 843 mn in Q1/18 compared to RON 353 mn in Q1/17, consisting mainly of Upstream investments to the amount of RON 653 mn in Q1/18, compared to RON 324 mn in Q1/17.
Downstream investments amounted to RON 190 mn (Q1/17: RON 29 mn), of which RON 189 mn were in Downstream Oil (Q1/17: RON 28 mn).
OMV Petrom Group reported a net cash position of RON 3,626 mn at the end of Q1/18, up from RON 2,897 mn at the end of Q4/17, the report reads.