OMV Petrom posts higher profits, ups dividends and cuts investments due to fiscal uncertainty

OMV Petrom, the biggest oil and gas group in Romania, recorded a net profit of RON 4.08 billion (EUR 876 million) in 2018, up by 64% over 2017, making this one of its best years ever in terms of results. The group's sales increased by 16% year-on-year to RON 22.5 billion (EUR 4.84 billion), according to the preliminary report sent to the Bucharest Stock Exchange on Wednesday, February 6. The higher results were mainly supported by higher oil prices. The average price at which OMV Petrom sold its oil production in 2018 was USD 62 per barrel, up 36% compared to 2017. This and lower operating expenses on the Upstream segment have compensated for the lower production of oil and gas. Based on the preliminary results, OMV Petrom’s Executive Board proposed a dividend per share of RON 0.027, up by 35% compared to the one paid last year. The total dividends would thus amount to almost RON 1.5 billion (EUR 318 million), implying a 38% payout ratio (the share of dividends from the company’s net profit). Despite the positive results, OMV Petrom also announced that it would revise its growth investment plans due to the unclear business climate in Romania. The estimated investments (CAPEX) for this year stand at RON 3.7 billion (EUR 790 million), down from RON 4.3 billion (EUR 924 million) in 2018. The full preliminary report is available here. OMV Petrom is the most valuable Romanian company listed on the Bucharest Stock Exchange. The group has a capitalization of over EUR 4 billion (as of February 6) after its shares gained almost 13% since the beginning of this year. Austrian group OMV holds a 51% stake in OMV Petrom while the Romanian state holds 20.6% of the group’s shares. editor@romania-insider.com (Photo source: the company)