Romania’s biggest oil&gas group ups profit 2.4 times, proposes higher dividends

OMV Petrom, the biggest oil and gas group in Romania, recorded a consolidated net profit of RON 2.49 billion (EUR 545 million) in 2017, up by 139% compared to the previous year. The group’s turnover went up by 17%, to RON 19.4 billion (EUR 4.25 billion), the company announced in a preliminary report on the Bucharest Stock Exchange. “Based on the preliminary results and strong free cash flow achieved in 2017, the Executive Board proposes a dividend of RON 0.020/share for the 2017 financial year, 33% up yoy, implying a 45% payout ratio,” said OMV Petrom’s CEO Mariana Gheorghe, who will leave the company by May this year, after 12 years at its helm. OMV Petrom also plans to increase its investments this year to RON 3.7 billion (EUR 795 million), from RON 3 billion in 2017, with most of the money going into the development of the Neptun offshore gas perimeter in the Black Sea. Petrom’s majority shareholder, Austrian group OMV, plans to increase the Romanian group’s international presence and has brought a former BP executive to manage the future development plans. OMV Petrom is listed on the Bucharest Stock Exchange and its shares have gained 7.7% since the beginning of this year. The company currently has a market capitalization of EUR 3.74 billion. The company's full preliminary report is available here. Austrian group OMV brings former BP executive to manage its Romanian subsidiary editor@romania-insider.com