OMV Petrom, the biggest oil and gas group in Romania, controlled by Austria’s OMV, recorded a RON 1.04 billion (EUR 232 million) net profit in 2016, after posting EUR 152 million losses in 2015.
The group’s Executive Board proposed a RON 0.015 dividend per share, which would result in a dividend payout ratio of over 80% of the net profit, the highest since the company’s privatization, in 2004. The total dividends amount to EUR 189 million, representing 55% of the free cash flow generated in 2016.
OMV Petrom also announced that it has updated the long-term strategy and aims for regional expansion.
The group’s operational results for 2016 continued the downtrend in recent years, due to the low oil prices. In the Upstream segment, the crude oil production went down by 4% and the natural gas production was also slightly lower compared to 2015. In Downstream, the total sales of refined products went down by 2% despite a 1% increase in retail sales. Gas sales to third parties went down 3%. However, the electricity sales increased by 10%.
“In 2016, the market environment remained volatile and challenging, which translated into a decrease of Clean CCS EBIT, offsetting the benefits of our continued cost discipline. Cost savings of around RON 500 million were achieved at Group level. In Upstream, we further reduced production costs, which more than compensated for the production decline impact, but could not fully offset the lower prices effect,” said Mariana Gheorghe, OMV Petrom CEO.