OMV Petrom posted a net profit up 4% last year to 4.2 billion lei, but the operating result CCA excluding special items decreased by 52% to 5.7 billion lei, amid lower commodity prices and a negative impact of the regulatory environment on the gas and power activity.
According to a group statement, in the Gas and Power segment, the decrease in operating profit was caused by lower electricity margins, influenced by legislative changes, by declining natural gas margins and by a high base effect following the reversal of a provision in 2023.
The lower contribution of the Exploration and Production segment was mainly determined by the decrease in sold volumes and prices.
The contribution of the Refining and Marketing segment was broadly similar.
“Our operational performance was very good in 2024: hydrocarbon production was above plan, with the smallest decline in the last 7 years, and the refinery and power plant operated at high capacity. Thus, we contributed significantly to the Romanian energy market, with about a third of fuel demand, a third of gas demand and 10% of electricity production. In 2024, operating profit at current supply costs excluding special items decreased to 5.7 billion lei, in an environment with lower prices and negatively affected by the regulatory changes introduced for natural gas and electricity, which led to a negative result of the Gas and Power activity in the second and fourth quarters of last year,” said Christina Verchere, CEO of OMV Petrom, according to Agerpres.
According to her, last year, an amount of 7.2 billion lei was invested for the development of the Neptun Deep project, for renewable energy projects and for the expansion of the electro-mobility network.
“We expect 2025 to be a difficult and volatile year, with fiscal and regulatory challenges. In the conditions of a predictable and competitive fiscal and regulatory environment, we expect to reach a record level of investments, of about 8 billion lei, which will contribute to Romania’s energy security and the country’s economy,” Verchere emphasized.
In the Exploration and Production segment, the operating result excluding special items was 3 billion lei, down 29%, mainly driven by low oil and gas prices and lower hydrocarbon sales volumes. Production was above expectations, at 109,000 boe/d, compared to 113,000 boe/d, a decrease of 3.8%, the lowest in the last 7 years. This was due to good results from capital repairs and drilling, which partially offset the natural decline, the company said. The cost of production increased by 2% to USD 16.2/boe, due to the decrease in production available for sale.
In the Refining and Marketing segment, the operating result CCA excluding special items was 2.4 billion lei, marginally lower compared to 2.5 billion lei in 2023, reflecting lower refining margins largely offset by the performance of sales channels
OMV Petrom refining margin indicator of 9.2 USD/bbl, lower by 34%, due to weaker differentials for diesel and gasoline. Refinery utilization rate of 97% compared to 80% in 2023, as 2023 was affected by the planned overhaul.
Total sales of refined products were up 6% while retail sales in Romania increased by approximately 4%, supported by increased demand.
In the Gas and Power segment, the operating result excluding special items of approximately 400 million lei, compared to 2.1 billion lei in 2023. According to the group, despite the good operational performance, the results were strongly affected by legislative changes and market dynamics.
Natural gas sales volumes were 7% lower, due to lower volumes to wholesalers and end consumers.
The net electricity production of the Brazi power plant increased to 4.9 TWh, from 4.2 TWh in 2023, representing 10% of Romania’s electricity production. This was the second highest level of production reached by the plant since the start of operations, after the record set in 2022, the cited source emphasizes.
Regarding regional gas development, OMV Petrom recalls that Neptun Deep progressed according to plan, with 90% of the budget already contracted. The construction of the production platform has advanced at Saipem’s sites in Indonesia and Italy, and the drilling rig has arrived in Romania.
At the same time, the group took over TotalEnergies’ stake in the offshore Han Asparuh block in Bulgaria, where OMV Petrom is the operator, and entered into a partnership with NewMed Energy to continue exploring this field.
On the renewable energy side, the company concluded transactions with Renovatio and Janzten Renewables for total solar and wind capacities of approximately 1.9 GW, and together with the announced partnership with CE Oltenia and its own photovoltaic project in Ișalnița, they form a portfolio of 2.4 GW.
“The final investment decision was taken for the construction of a SAF/HVO unit and two green hydrogen units, positioning Petrobrazi to become the first major producer of sustainable fuels in Southeastern Europe. The company has also taken steps to secure raw materials for the production of sustainable fuels: it signed contracts to purchase vegetable oil from Expur and acquired a 50% stake in Respira Verde, the largest collector and processor of used cooking oil in the country. The transaction concluded with Renovatio contributes to OMV Petrom owning the largest electric vehicle charging network in Romania, with approximately 900 charging points by the end of 2024,” the statement added.