OMV Petrom (SNP) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered robust operational performance and solid financial results despite lower oil, gas, and refining margins, with integration and strategic progress in renewables and Neptun Deep partly offsetting market and regulatory headwinds.

• Regulatory changes and high taxation in Romania's gas and power sectors, including new price caps and Ordinance 32, continued to negatively affect results.

• Special dividends were paid in September, and health, safety, and environmental performance remained strong.

Financial highlights

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

• Clean CCS Operating Result dropped 36% year-on-year to RON 1.6 bn; Clean CCS net income attributable to stockholders fell 33% to RON 1.4 bn.

• Operating cash flow decreased to RON 1.9 bn, down 36% year-on-year.

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

• Capital expenditure surged 139% year-on-year to RON 2.4 bn, mainly for E&P and renewables.

Outlook and guidance

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

• Hydrocarbon production guidance raised to ~108 kboe/d for 2024; refinery utilization above 95%.

• Organic CAPEX guidance up to RON 6.5 bn, total CAPEX including M&A at RON 7.5 bn.

• Positive free cash flow before dividends expected, but lower year-on-year due to higher investments.

• Guidance for 2025–2026 under review.