OMV Petrom (SNP) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered resilient operational performance amid volatile and highly regulated markets, with strong cost focus and high downstream asset availability, but financial results were impacted by lower and volatile commodity prices, reduced margins, and regulatory pressures, partially offset by integration benefits.

• Clean CCS Operating Result was RON 1.3 billion, down 29% year-on-year; clean CCS net income attributable to stockholders dropped 30% to RON 1.1 billion; operating cash flow declined 11% to RON 2.7 billion.

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

• Strategic projects advanced, including Neptun Deep gas project (development drilling started in March), sustainable fuels unit at Petrobrazi refinery, and four PV parks with CE Oltenia.

• Base dividend of RON 0.0444 per share approved, with payment starting June 3, 2025; special dividend decision expected mid-2025.

Financial highlights

• Group clean CCS operating result decreased by 29% year-on-year to RON 1.3 billion, with higher E&P results but lower downstream performance.

• Net income attributable to stockholders fell 24–30% year-on-year to RON 1.1 billion.

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

• Total CapEx for Q1 2025 was RON 1.4 billion, up 44% year-on-year, with 75% allocated to E&P; full-year CapEx guidance up to RON 8.6 billion.

• Net cash position, including leases, decreased to RON 8.1 billion from RON 14.4 billion at end of March 2024.

Outlook and guidance

• Brent oil price guidance for 2025 lowered to $70 per barrel; refining margin forecasted at $7–8 per barrel; refinery utilization rate expected at 90–95% due to planned shutdown.

• Full-year hydrocarbon production expected at around 104,000 boe/d; production cost guidance maintained at ~$16/boe.

• Organic CapEx planned at around RON 8 billion for 2025, over 25% higher year-on-year; inorganic CapEx up to RON 0.6 billion.

• Free cash flow before dividends expected to be negative in 2025 due to higher planned investments; base dividend approved, special dividend decision expected mid-2025.

• Strategic focus on regional gas growth (Neptun Deep, Han Asparuh) and transition to low/zero carbon (SAF/HVO, renewables, EV charging network expansion).