OMV Petrom (SNP) Q4 2024 earnings summary

Executive summary

• Strategy 2030 execution advanced, focusing on renewables, e-mobility, and higher dividends, with major progress in Neptun Deep and portfolio expansion to over 2.4 GW through acquisitions and partnerships.

• EV charging network grew from 270 to 900 points, targeting 5,000 by 2030, with key M&A transactions in e-mobility.

• Significant investments in biofuels and green hydrogen, with major projects underway at Petrobrazi and FID for SAF/HVO plant.

• Delivered resilient Q4 2024 performance despite weaker commodity prices and margins, maintaining strong cost discipline.

• Neptun Deep project achieved major milestones in 2024, with 90% of execution budget committed and first gas expected in 2027.

Financial highlights

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

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

• Operating cash flow in Q4 2024 was RON 0.5 billion, a 76% year-on-year decline; free cash flow was RON -1.7 billion.

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

• Net cash position decreased to RON 8.1 billion at year-end 2024 from RON 12.6 billion in 2023.

Outlook and guidance

• 2025 CapEx planned at RON 8 billion, over 25% higher year-on-year, focused on Neptun Deep and low/zero carbon projects.

• Free cash flow before dividends expected to be negative in 2025 due to high investments.

• Hydrocarbon production forecast at 104 kboe/d in 2025, with a 4.5% decline, more pronounced in oil.

• Production cost per boe expected at $16 in 2025, decreasing to $13 by 2027 with Neptun Deep.

• Dividend payout ratio proposed at 42.8% of 2024 operating cash flow, with potential for special dividend in 2025.