OMV Petrom S.A.

Earnings Release • Aug 10, 2017

National Storage Mechanism | Additional information

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RNS Number : 5985N

OMV Petrom S.A.

10 August 2017

OMV Petrom Group: results for Q2 and January - June 2017

including interim condensed consolidated financial statements as of and for the period ended June 30, 2017

Highlights Q2/17

u Strong free cash flow after dividends of RON 397 mn

u Clean CCS Operating Result at RON 892 mn, equally contributed by Upstream and Downstream

u Excellent clean CCS EPS at RON 0.0122

Mariana Gheorghe, CEO of OMV Petrom S.A.:

"In the first six months of 2017, we converted favorable market conditions into solid operational and financial performance. We were supported by increased oil prices, strong refining margins and higher demand for all our products. In addition, we continued our strict cost discipline. As a result, our 6m/17 Clean CCS Operating Result reached RON 1.66 bn, with both Upstream and Downstream showing significant increases. In Upstream, further reduced production cost per barrel fully offset the production decline. Downstream Clean CCS Operating Result increased by 70% yoy on better contributions from both Oil and Gas. Operating cash flow of RON 3 bn, up 68% yoy, combined with CAPEX reduction and RON 0.8 bn dividend payment, led to a free cash flow after dividends of RON 1 bn.

We revised down our 2017 CAPEX guidance to EUR 0.7 bn from EUR 0.8 bn, due to wells portfolio optimizations, savings and project revisions; nevertheless, we are prepared for a ramp up in investments in the second half of 2017, especially given our strong balance sheet. We maintained the guidance for the daily average production decline of around 3% yoy, not including portfolio optimization initiatives.

In July, we signed the contract for the sale of Dorobantu wind park, as part of our strategy to focus on core activities. In addition, we resumed operations at the Brazi power plant, at half capacity, on July 5.

On August 1, the transfer of 19 marginal fields took place. A new round of divestments was initiated in line with our strategic direction of value over volume."

Q2/17	Q1/17	Q2/16	Δ%	Key performance indicators (in RON mn)	6m/17	6m/16	Δ%
892	767	231	285	Clean CCS Operating Result	1,659	643	158
779	798	220	254	Operating Result	1,577	566	179
690	586	127	443	Clean CCS net income attributable to stockholders	1,276	458	179
592	619	118	403	Net income attributable to stockholders	1,210	408	196
0.0122	0.0103	0.0022	443	Clean CCS EPS (RON)	0.0225	0.0081	179
0.0104	0.0109	0.0021	403	Earnings Per Share (RON)	0.0214	0.0072	196
1,714	1,262	883	94	Cash flow from operating activities	2,976	1,771	68
397	646	130	205	Free cash flow after dividends	1,043	12	n.m.

OMV Petrom will organize a live presentation of the Q2/2017 results on August 10, 2017, starting 3.00pm (local time) / 2.00pm (CEST) / 1.00pm (BST). The presentation will last approximately 30 minutes, followed by a Q&A session, and will be hosted by:

·      Mariana Gheorghe, President of the Executive Board & CEO

·      Stefan Waldner, Executive Board Member & CFO

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.

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/5985N_-2017-8-10.pdf

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