OMV Petrom (SNP) CMD 2024 summary

Strategic direction and transformation

• Strategy 2030 focuses on energy transition with three pillars: transition to low/zero carbon, grow regional gas, and optimize traditional business, targeting net zero by 2050.

• Neptun Deep, the largest offshore gas resource in the EU, is central to regional gas growth, with first gas expected in 2027, a €4 billion investment, and a production plateau at ~140 kboe/d.

• Renewable power target increased to ~2.5 GW installed by 2030, with EUR 3 billion CAPEX, and e-mobility charging points target raised to over 5,000 by 2030.

• Biofuels ramp-up slowed, now targeting 250–300 kta SAF/HVO by 2030, with >80% feedstock secured for first 8 years.

• Scope 1-2 emissions reduced by 22% and Scope 1-3 by 9% vs 2019, with net zero operations targeted by 2050.

Financial guidance and shareholder returns

• Total CAPEX of ~€11 billion by 2030, with ~€3.7 billion for low/zero carbon and 20% for regional gas.

• Raises minimum IRR threshold to double-digit from 9%, and Clean CCS ROCE target to 15% by 2030 (up from 12%).

• 2030 Clean CCS EBIT targeted at >€1.5 billion, with half from Neptun Deep and low/zero carbon by 2030.

• Dividend policy updated: 5–10% annual growth, 40–70% of OCF allocated to dividends, aiming for ~50% total distributions by 2030.

• Special dividends distributed in favorable market conditions, with record high distributions supporting >50% total shareholder return in 2023.

Operational achievements and project updates

• Discovered over 30 million boe in new Romanian oil/gas resources and completed major refinery upgrades.

• Neptun Deep project on track: all major contracts awarded, 90% of budget committed, first gas in 2027, and very low carbon intensity (2.2 kg CO₂/boe).

• Renewable power portfolio exceeds 2 GW (solar/wind) through partnerships; FID for SAF/HVO plant at Petrobrazi.

• Green hydrogen projects accelerated, leveraging EU funds; e-mobility network to reach 1,000 fast/ultra-fast chargers by end-2024.

• CCS targeted at 2 million tons CO₂/year by 2030, with over €1 billion CapEx allocated.