OMV Petrom reports 21% y/y lower net profit in H1 on weak results in all segments
<p>Romanian energy group OMV Petrom (BVB: SNP) announced its sales revenues dropped by 7% y/y in Q2, resulting in a 1% y/y contraction to RON 17.0 billion (EUR 3.4 billion) in the whole H1, while its net profit plunged by 17% y/y in Q2 and 21% y/y to RON 2.1 billion in H1, according to the company's H1 preliminary financial reports.</p>

<p>The shares of the company, which has a RON 48.7 billion capitalization, edged up by 0.64% on the day after the release, while maintaining a negative (-1%) annual dynamics.</p>

<p>The company has already released RON 2.75 billion as dividends out of its 2024 profit, consistent with a yield of 5.7% based on the average price on the last day eligible for dividends. Supplementary dividends may be decided in September, the company announced in its H1 report.</p>

<p>OMV Petrom CEO Christina Verchere stressed that the record level of investments this year (RON 8 billion, EUR 1.6 billion) shows the group's confidence in the Romanian economy. About 46% of the Neptun Deep offshore gas project, with a deadline in 2027, is complete, with international shipyards working on Romania's largest energy project.</p>

<p>The works on Neptun Deep are developing in line with the plan and the budget, and once completed, Romania's position in the region will be strengthened, OMV Petrom representatives said in the H1 results press conference, according to <a href="https://www.zf.ro/companii/energie/mesajul-celui-mai-puternic-ceo-christina-verchere-omv-petrom-nivelul-22868796?mc_cid=8ab14127b8&amp;mc_eid=607bd7d763" rel="noopener" target="_blank">Ziarul Financiar</a>.</p>

<p>As regards its H1 revenues, OMV Petrom explains that they were negatively impacted by lower prices and sales volumes of petroleum products, partly offset by higher prices and sales volumes of electricity and natural gas.&nbsp;However, the drop in the company's net profit was the result of weak results in all segments.</p>

<p>Clean CCS (current cost of supply) Operating Result of RON 2.45 billion in H1 decreased by 22% y/y due to the lower contribution of all business segments.&nbsp;</p>

<p>The negative contribution in the Gas and Power segment also reflected the legislative changes starting in April 2024, which led to lower power margins. The decreased contribution of the Refining and Marketing segment was mainly due to lower refinery utilisation and refining margins, while the lower contribution of the Exploration and Production segment was mainly due to lower hydrocarbon sales volumes.&nbsp;</p>

<p>The result also reflected a slight increase in purchases, largely due to higher acquisitions of power and gas, partly offset by lower acquisitions of petroleum products and imported crude oil.&nbsp;</p>

<p><em>(Photo: OMV Petrom brand portal)</em></p>

<p><em>iulian@romania-insider.com</em></p>