REG - OMV Petrom S.A. - Preliminary results for Q4 & January-December 2017 <Origin Href="QuoteRef">ROSNP.BX</Origin>

OMV Petrom SAAnnouncement

21/02/2018 07:05

RNS Number : 4912F
OMV Petrom S.A.
21 February 2018
OMV Petrom Group: results1 for Q4 and January - December 2017
including preliminary and unaudited condensed consolidated financial statements as of and for the period ended December 31, 2017
Highlights Q4/17
u Clean CCS Operating Result at RON 573 mn, up 26% yoy
u EPS at RON 0.0113, being 4 times higher yoy
u Free cash flow after dividends at RON 664 mn, up 54% yoy
u Clean CCS ROACE at 10%
Dividend proposal 20172: RON 0.020/share, up 33% yoy.
Mariana Gheorghe, CEO of OMV Petrom S.A.:
"In Q4/17 we benefited from increased demand for electricity and fuels as well as higher commodity prices; against this backdrop, the refining margins were lower by USD 1/bbl yoy. We continued our cost optimization initiatives; however, our Q4/17 results were impacted by higher exploration expenses and one-time costs in connection with the renegotiated Collective Labor Agreement.
The 2017 Clean CCS Operating Result almost doubled yoy to RON 3.3 bn, with Upstream and Downstream contributing almost equally. Upstream benefitted from better realized prices, lower OPEX and depreciation. The Downstream Oil result reflected better refining margins and increased demand. The Downstream Gas result mainly reflected strong spark spreads and the insurance revenues related to the Brazi power plant. All the above led to an operating cash flow of RON 6 bn in 2017. During the year, we made investments of RON 3 bn and paid dividends of RON 0.8 bn, resulting in a free cash flow after dividends of RON 2.7 bn.
For 2018, we plan CAPEX at RON 3.7 bn, mainly for ramping up our drilling activity, the Neptun project, the scheduled full-site refinery turnaround and the Polyfuel project. While our focus remains on extracting the highest value from the existing Upstream portfolio, we estimate the daily average production decline to reach 4% yoy, excluding divestments.
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. The final dividend proposal is to be submitted for approval by both the Supervisory Board and the subsequent April 2018 GMS."
Q4/17
Q3/17
Q4/16
%3
Key performance indicators (in RON mn)
2017
2016
%
573
1,042
453
26
Clean CCS Operating Result 4
3,273
1,700
92
820
873
335
145
Operating Result 5
3,270
1,476
122
434
778
263
65
Clean CCS net income attributable to stockholders 4,6,7
2,488
1,162
114
642
639
162
297
Net income attributable to stockholders 6
2,491
1,043
139
0.0077
0.0137
0.0046
65
Clean CCS EPS (RON) 4,6,7
0.0439
0.0205
114
0.0113
0.0113
0.0029
297
Earnings Per Share (RON) 6
0.0440
0.0184
139
1,508
1,470
1,070
41
Cash flow from operating activities
5,954
4,454
34
664
959
432
54
Free cash flow after dividends
2,666
1,558
71
-
-
-
-
Dividend/share (RON)
0.0202
0.015
33
1The financials are unaudited and represent OMV Petrom Group's (herein after also referred to as "the Group") consolidated results prepared according to IFRS; all the figures refer to OMV Petrom Group, unless otherwise stated; financials are expressed in RON mn and rounded to the closest integer value, so minor differences may result upon reconciliation; OMV Petrom uses the National Bank of Romania exchange rates for its consolidation process
2 Subject to approval by the Supervisory Board and the General Meeting of Shareholders
3Q4/17 vs. Q4/16
4 Adjusted for exceptional, non-recurring items; Clean CCS figures exclude special items and inventory holding effects (CCS effects) resulting from Downstream Oil
5 The income statement has been restructured in line with the industry's best practice. Further information to be found on page 18
6After deducting net result attributable to non-controlling interests
7 Excludes additional special income from a legal dispute reflected in the financial result

OMV Petrom will organize a live presentation of the Q4 and January-December 2017 results on February 21, 2018, starting 3.00pm (local time) / 2.00pm (CET) / 1.00pm (GMT). The presentation by Executive Board members will last approximately half an hour, followed by a Q&A session.
The presentation will be held in English and will be broadcasted through a live audio webcast, which can be accessed from the company's website, www.omvpetrom.com, section OMV Petrom  Investor Relations  Financial calendar and events  Quarterly publications.

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