OMV Petrom’s net profit plummets 61% in 2023

OMV Petrom’s consolidated sales fell by 37% on the year to 38.8 billion lei in 2023, negatively impacted by lower commodity prices and electricity sales volumes, the company said in an unaudited financial report submitted to the Bucharest Stock Exchange.

The refining and marketing segment accounted for 69% of OMV Petrom’s consolidated sales in 2023, while the gas and power and the exploration and production divisions represented 30% and 0.1%, respectively.

The exploration and production division was the only one to see its operating result grow in 2023, reaching 4.17 billion lei after a 15% annual increase. The operating results of the refining and marketing division fell by an annual 43% to 2.318 billion lei, while the gas and power segment plummeted by 68% to 1.474 billion lei.

Capital expenditure reached 4.704 billion lei in 2023, 32% higher than a year earlier, with 54.9% of investments directed at the exploration and production segment, 41.6% at the refining and marketing segment, and 1.5% at the gas and power division.

Total hydrocarbon production decreased by an annual 5% to 113.3 kboe per day in 2023, matching the annual fall in the volume of hydrocarbon sales which stood at 108.4 kboe per day. Production costs increased by 21% to $15.97 (14.75 euro) per boe.

In the fourth quarter alone, the group’s preliminary net profit rose 29.4% to 1.482 Billion lei.

Total dividends paid in 2023 amounted to 5.102 billion lei, with the company proposing a base dividend of 0.413 lei per share for this year and planning to also announce a special dividend.

In January, OMV Petrom announced it will buy a 50% stake in Electrocentrale Borzesti, which owns a 1 GW portfolio of wind and solar energy, and will fully acquire Renovatio Asset Management, the owner of Romania's leading electric vehicle (EV) charging network.

Austria's OMV Aktiengesellschaft holds a 51.157% stake in OMV Petrom. The Romanian economy ministry owns 20.698% and 28.145% is free float on the Bucharest bourse and the London Stock Exchange.

Shares in blue-chip OMV Petrom changed hands 1.55% higher at 0.589 lei by 0916 CET on Thursday on the Bucharest bourse.

(1 euro=4.9759 lei)