OMV Petrom (SNP) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw resilient operational performance with a strong cost focus, but Clean CCS Operating Result fell 29% year-on-year to RON 1.3 billion due to lower commodity prices, refining margins, and regulatory impacts.

• Net income attributable to stockholders dropped 30% to RON 1.1 billion; operating cash flow decreased 11% to RON 2.7 billion.

• Capital expenditure rose 44% to RON 1.4 billion, mainly for Neptun Deep and renewables, with strategic projects advancing and a base dividend of RON 0.0444 per share approved.

• Hydrocarbon production had the lowest first-quarter decline in five years, with a slight quarter-on-quarter increase; GHG intensity reduced by 13% versus 2019.

• Key events included Neptun Deep drilling start, SAF/HVO unit construction, PV park progress, and a 7.5% higher base dividend approval.

Financial highlights

• Clean CCS Operating Result: RON 1.3 billion, down 29% year-on-year; Clean CCS net income: RON 1.1 billion, down 30% year-on-year.

• Operating cash flow: RON 2.7 billion, down 11% year-on-year; free cash flow after dividends: RON 1.1 billion, down 42% year-on-year.

• Total CapEx for Q1 2025: RON 1.4 billion, up 44% year-on-year; full-year guidance up to RON 8.6 billion.

• Net cash position (including leases): RON 8.1 billion at end of Q1 2025.

• Sales revenues increased 5% year-on-year to RON 8.95 billion, supported by higher gas and electricity prices and volumes.

Outlook and guidance

• 2025 Brent oil price guidance at $70 per barrel; refining margin forecasted at $7–8/bbl.

• Organic CapEx planned at RON 8 billion for 2025, with potential inorganic CapEx up to RON 0.6 billion.

• Free cash flow before dividends expected to be negative in 2025 due to higher investments; base dividend of RON 0.0444/share approved.

• Production expected at ~104 kboe/d; production cost around $16–17 per boe.

• Refined product sales forecasted slightly lower year-on-year; retail fuel sales slightly higher; refinery utilization rate seen at 90–99% due to planned shutdown.