OMV Petrom (SNP) Q4 2024 earnings summary

Executive summary

• Advanced Strategy 2030 with major progress in Neptun Deep, renewables, and e-mobility, including the arrival of the Neptun Deep drilling rig and expansion to over 2.4 GW renewable capacity.

• EV charging network grew from 270 to 900 units, targeting 5,000 by 2030, and key M&A deals in renewables and e-mobility were closed.

• Strong shareholder returns: RON 4,410 million in dividends paid, 23% share price increase, and a 36% total return in 2024.

• Maintained strong cost discipline and delivered resilient Q4 2024 performance despite weaker commodity prices and margins.

• Base dividend proposal for 2024 is RON 0.0444/share, up 7.5% year-on-year, with a potential special dividend decision expected mid-2025.

Financial highlights

• Q4 2024 clean CCS operating result: RON 1 billion, down 57% year-on-year; clean CCS net income: RON 0.8 billion, down 62% year-on-year.

• Q4 operating cash flow: RON 0.5 billion, down 76% year-on-year; free cash flow after dividends: RON -1.7 billion.

• Total CapEx for 2024: RON 7.2 billion, up 52% year-on-year; up to RON 8.6 billion planned for 2025.

• Net income attributable to stockholders in Q4: RON 263 million, down 82% year-on-year.

• Net cash position at end-2024: RON 8.1 billion, down from RON 12.6 billion at end-2023.

Outlook and guidance

• 2025 Brent oil price expected at USD 75/bbl; production forecast at 104 kboe/d; refining margin USD 7-8/bbl.

• 2025 CapEx planned at RON 8 billion, with focus on Neptun Deep and low/zero carbon projects.

• Free cash flow before dividends expected negative in 2025 due to high investments; marginally positive in 2026-2027.

• 2026-2027: production up to 130 kboe/d with Neptun Deep, CapEx ~RON 8 billion/year.

• Production cost per boe expected to drop to USD 13 in 2026-2027, and to USD 8 with full Neptun Deep output.