OMV Petrom (SNP) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered robust operational performance and strategic progress in renewables and Neptun Deep, despite lower oil, gas, and refining margins and a challenging regulatory environment.

• Clean CCS Operating Result was RON 1.6 billion, down 36% year-on-year; Clean CCS net income attributable to stockholders was RON 1.4 billion, down 33% year-on-year.

• Operating cash flow declined 36% to RON 1.9 billion; free cash flow before dividends remained positive, but after dividends was negative due to special dividend payments.

• Major renewable acquisitions closed, including 1 GW wind/solar with Renovatio and 710 MW solar from Jantzen; e-mobility network expanded to 800 charging points.

• Special dividends paid in September, with total dividends for 9M 2024 amounting to RON 4,409 million.

Financial highlights

• Sales revenues decreased 11% year-on-year to RON 9.4 billion, mainly due to lower natural gas and electricity prices and volumes.

• Refining margin dropped 58% year-on-year, impacting results; inventory holding losses of RON 98 million recorded.

• Net cash position, including leases, dropped to RON 10.2 billion from RON 14.5 billion year-on-year.

• Free cash flow before dividends was RON 0.1 billion in Q3 2024, reflecting higher capex and negative working capital.

• Capital expenditure reached RON 2.4 billion in Q3, up 139% year-on-year, mainly for E&P and renewables.

Outlook and guidance

• 2024 Brent oil price expected at USD 80–85/bbl; refining margin guidance at USD 9/bbl.

• Production guidance raised to ~108,000 boe/day for 2024; refinery utilization rate to remain above 95%.

• Organic CapEx guidance up to RON 6.5 billion, total CapEx including M&A at RON 7.5 billion, focused on Neptun Deep and renewables.

• Free cash flow before dividends expected to remain positive in 2024, but lower year-on-year due to higher investments.

• Guidance for 2025–2026 under review, with free cash flow before dividends expected marginally negative.