OMV Petrom (SNP) Q2 2025 earnings summary

Executive summary

• Q2 2025 performance was resilient amid volatile oil prices, regulatory headwinds, and planned maintenance, with a strong cost focus and progress in regional gas (Neptun Deep), renewables (Gabare PV project), biofuels (SAF/HVO), and e-mobility initiatives, including Romania's largest electric charging hub.

• Base dividend for 2024 increased and paid in June 2025; special dividend decision postponed to Q3 pending clarity on investments and regulatory changes.

• Operational performance remained resilient despite lower and volatile oil prices, regulatory impacts, and integration benefits.

• Key events included a new gas discovery in Spineni, expansion into Bulgarian renewables, and securing feedstock for sustainable aviation fuel production.

Financial highlights

• Q2 2025 clean CCS operating result: RON 1.2 billion, down 14% year-on-year.

• Net income attributable to stockholders: RON 1.1 billion, down 17% year-on-year; clean CCS net income rose 2% to RON 1.2 billion.

• Operating cash flow: RON 2 billion, up 91% year-on-year.

• Total CapEx H1 2025: RON 3.3 billion, up 33–37% year-on-year, mainly for Neptun Deep and renewables.

• Free cash flow after dividends was negative RON 2,646 million in Q2 2025 due to high investments and record dividend payments.

Outlook and guidance

• 2025 Brent oil price estimate maintained at $70/bbl; production guidance ~104,000 boe/d; refining margin ~$8/bbl; refinery utilization rate 90–95%.

• Organic CapEx for 2025 planned at RON 8–8.6 billion, over 25% higher year-on-year, focused on Neptun Deep, renewables, and SAF/HVO.

• Free cash flow before dividends expected negative in 2025 due to high investments; special dividend under review.

• Production cost expected above $17/boe due to forex, new construction tax, and inflation.

• Strategic focus on optimizing traditional business, growing regional gas, and transitioning to low/zero carbon, including renewables and EV charging expansion.