OMV Petrom Group posts net profit increase of 4pct up to 4.2 B RON in 2024

OMV Petrom Group posted a net profit increase of 4% last year, up to 4.2 billion RON, but with an operating result from CCA exploitation, except for special elements, having decreased by 52%, to 5.7 billion RON, amid lower commodity prices and a negative impact of the regulatory environment on the gas and power activity."Our operational performance was very good in 2024: hydrocarbon production was above plan, with the smallest decline in the last 7 years, and the refinery and power plant operated at high capacity. Thus, we contributed significantly to the Romanian energy market, with about a third of fuel demand, a third of gas demand and 10% of electricity production. In 2024, operating profit at current supply costs excluding special items decreased to 5.7 billion RON, in an environment with lower prices and negatively affected by the regulatory changes introduced for natural gas and electricity, which led to a negative result of the Gas and Power activity in the second and fourth quarters of last year," said Christina Verchere, CEO of OMV Petrom, quoted in the press release.On the Exploration and Production segment, the CCA operating profit except for special items was 3 billion RON, down 29%, driven mainly by lower oil and gas prices and lower hydrocarbon sales volumes. Production was above expectations, at 109,000 boe/d, compared to 113,000 boe/d, a 3.8% decrease, the lowest in the last 7 years. This was due to good results from capital repairs and drilling, which partially offset the natural decline, the company said. The cost of production increased by 2%, to 16.2 USD/boe, due to the decrease in production available for sale.In the Refining and Marketing segment, the CCA operating result except for special items was 2.4 billion RON, lower compared to 2.5 billion RON in 2023, reflecting lower refining margins largely offset by the performance of sales channels OMV Petrom refining margin indicator of 9.2 USD/bbl, down 34%, due to weaker diesel and gasoline differentials. Refinery utilization rate of 97% compared to 80% in 2023, as 2023 was affected by the planned overhaul.Total refined product sales were higher by 6% while retail sales in Romania increased by approximately 4%, supported by increased demand.In the Gas and Power segment, the operating result except for special items was around 400 million RON, compared to 2.1 billion RON in 2023. According to the group, despite the good operational performance, the results were strongly affected by legislative changes and market dynamics. Natural gas sales volumes were 7% lower, due to lower volumes to wholesalers and end consumers.The net electricity production of the Brazi power plant increased up to 4.9 TWh, from 4.2 TWh in 2023, representing 10% of Romania's electricity production. This was the second highest level of production reached by the plant since the start of operations, after the record set in 2022, the same source emphasises.Regarding regional gas development, OMV Petrom recalls that Neptun Deep progressed according to plan, with 90% of the already contracted budget. The construction of the production platform has advanced at Saipem's shipyards in Indonesia and Italy, and the drilling rig has arrived in Romania.At the same time, the group took over TotalEnergies' stake in the offshore Han Asparuh block in Bulgaria, where OMV Petrom is the operator, and entered into a partnership with NewMed Energy to continue exploring this field.On the renewable energy side, the company concluded transactions with Renovatio and Janzten Renewables for total solar and wind capacities of approximately 1.9 GW, and together with the announced partnership with CE Oltenia and its own photovoltaic project in Isalnita, they form a portfolio of 2.4 GW.The OMV Petrom Group also announced the upgrading of traditional activities by launching a new automated drilling technology in Romania and the commissioning, at the Petrobrazi refinery, of the largest crude oil storage tank in the country.At the same time, OMV Petrom has expanded its natural gas supply activities in Bulgaria, addressing end customers.In terms of social projects supported directly and through the OMV Petrom Foundation, the group invested 26 million euros last year in the areas of health, education and the environment.The Austrian group OMV Aktiengesellschaft holds 51.156% of OMV Petrom shares and the Romanian state, through the Ministry of Energy - 20.698%, according to data from June 30, 2024 posted by the Bucharest Stock Exchange.