OMV Petrom announced its financial results for the first quarter of 2024. The company achieved a net profit of around 1.4 billion RON, down 6 percent compared to Q1 2023.
Consolidated sales revenues decreased by 10 percent compared to Q1/23, negatively impacted by lower prices for natural gas and electricity, as well as lower sales volumes of natural gas, partially offset by higher sales volumes of electricity and refined products.
Refining and Marketing segment represented 72 percent of total consolidated sales, Gas and Power segment accounted for 28 percent, while sales from Exploration and Production segment accounted only for 0.2 percent (sales in Exploration and Production being largely intra-group sales rather than third-party sales).
The Clean CCS Operating Result amounted to RON 1,769 mn in Q1/24, decreased from RON 2,095 mn in Q1/23, due to lower contribution from all business segments, mainly due to lower margins from natural gas in the Gas and Power segment, decline of natural gas prices and lower sales volumes in the Exploration and Production segment, and lower refining margin and utilization rate in the Refining and Marketing segment. The Consolidation line had a positive contribution in Q1/24 of RON 151 mn, mainly due to lower quantities of natural gas in stock, compared to a negative contribution of RON (205) mn in Q1/23, which reflected mainly the increased petroleum products inventory in preparation for the refinery planned turnaround in Q2/23. The Clean CCS Group effective tax rate was 17 percent (Q1/23: 16 percent). Clean CCS net income attributable to stockholders of the parent was RON 1,540 mn (Q1/23: RON 1,881 mn).
Exploration and Production
Clean Operating Result at RON 728 mn vs. RON 985 mn in Q1/23, mainly reflecting lower gas prices and hydrocarbon sales volumes, as well as higher depreciation
Production decreased by 4.0 percent, mainly due to natural decline, partly offset by good results from new wells and workovers
Production cost increased by 10 percent to USD 15.9/boe, mainly due to higher personnel and service costs, as well as lower production available for sale
Refining and Marketing
Clean CCS Operating Result at RON 484 mn vs. RON 616 mn in Q1/23, mainly reflecting lower refining and marketing margins as well as additional tax on revenues
OMV Petrom indicator refining margin at USD 12.6/bbl, down 24 percent as a result of lower product spreads, mainly for diesel and gasoline
Refinery utilization rate at 93 percent vs. 98 percent in Q1/23 due to short unplanned plant outages and supply constraints; however utilization was above the European average (~80 percent)
Total refined product sales volumes 4 percent higher, despite lower refinery utilization, with main contribution from retail, up 7 percent
Gas and Power
Clean Operating Result at RON 433 mn decreased vs. RON 723 mn in Q1/23, mainly as excellent gas storage margins in Q1/23 did not materialize in Q1/24
Lower total gas sales volumes, with higher end user sales and higher Brazi power plant offtake, as well as lower volumes to wholesales, including regulated market
Brazi power plant output at 1.6 TWh, record high production level for a Q1, 10 percent share in Romania’s generation mix
Christina Verchere, CEO OMV Petrom: “We had a strong start to the year, progressed with our transformation and achieved good results for the first quarter in a volatile market environment. While the price of crude oil rose slightly compared to the first quarter of 2023, gas and electricity prices in our relevant markets fell by more than 40 percent. Our integrated business model and strong operating performance have helped to largely hedge against this effect; our CCA operating result excluding special items decreased by 16 percent compared to the first quarter of 2023 to 1.8 billion RON, also supported by the return of demand for all our products. Our investments have reached 1 billion RON and we will invest around 8 billion lei in 2024. This budget reflects our commitment to implement the transformation strategy for a low-carbon future. We have also maintained our commitment to delivering value for our shareholders by distributing a record basic dividend for the 2023 financial year.”
