OMV Petrom to invest 1.6 bln euro annually through 2026

The company’s capital expenditure totalled about 5 billion lei in 2023, representing a 30% increase from 2022 and surpassing the 3.5 billion lei averaged between 2017 and 2021, it said on Thursday in a media presentation outlining its 2023 financial results.

“Looking forward to 2024, we plan to continue with preparations for the first drilling at Neptun Deep, which is expected in 2025. We also remain focused on the gradual ramp up of renewable power production and on expanding our regional EV network to 1,000 electrical charging points, thus becoming the largest Romanian e-mobility player," Christina Verchere, OMV Petrom CEO, said.

The Neptun Deep Black Sea gas project, which OMV Petrom develops jointly with state-owned gas producer Romgaz, is expected to cost 4 billion euro.

OMV Petrom took steps to expand its green portfolio after agreeing to acquire several projects for the construction of solar parks with a total installed capacity of 710 MW from Danish green project developer Jantzen Renewables last year.

The company also partnered with state-owned electricity producer Complexul Energetic Oltenia (CE Oltenia) to develop solar photovoltaic (PV) parks with a total capacity of some 450 MW in 2023 and announced earlier this year that it will acquire a 50% stake in Electrocentrale Borzesti, which owns a 1 GW portfolio of wind and solar energy, while fully acquiring Renovatio Asset Management, the owner of Romania's leading electric vehicle (EV) charging network.

OMV Petrom expects market volatility to persist, with the Brent price expected around $80 (73.5 euro) per barrel (bbl) and the refining margin projected to be around $10 per bbl. Domestic demand for natural gas, power, and retail fuels is expected to increase.

The company’s net profit fell 61% year-on-year in 2023, to 4.03 billion lei, it said on Thursday.

OMV Petrom shares traded 1.19% higher at 0.5945 lei as at 1205 CET on Friday on the Bucharest Stock Exchange.

(1 euro=4.9728 lei)