OMV Petrom S.A.

Earnings Release • Aug 2, 2018

National Storage Mechanism | Additional information

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RNS Number : 5962W

OMV Petrom S.A.

02 August 2018

OMV Petrom Group results1 for January - June and Q2 2018

including unaudited interim condensed consolidated financial statements as of and for the period ended June 30, 2018

Highlights Q2/18

u Operating cash flow RON 1.4 bn

u Dividends paid RON 1.1 bn

u Clean CCS Operating Result RON 735 mn

u Clean CCS ROACE 9.5%

In the first six months of 2018, the positive impact of improved commodity prices was partly offset by the effects of the planned refinery turnaround, which was delivered on time and on budget.

Our 6m/18 Clean CCS Operating Result reached RON 1.7 bn, stable yoy, with Upstream being the largest contributor. The six-week refinery turnaround impacted the Downstream Oil Clean CCS Operating Result by around RON (150) mn. In addition, the turnaround led to unrealized profits in amount of approximately RON (260) mn at Group level, which are eliminated in the Consolidation line. This effect will be reversed over the remainder of the year as stored crude is processed and crude inventories are reduced to normal levels.

Our operating cash flow reached RON 3.2 bn in 6m/18, up 7% yoy. In line with our guidance, we ramped up investments, more than doubling the number of wells and sidetracks in Upstream, while in Downstream Oil we completed the full-site refinery turnaround, moving to a four-year turnaround cycle. These translated into cash outflow from investments of around RON 2 bn, almost double yoy. In 6m/18 we paid dividends to the amount of RON 1.1 bn.  

As a result of all the above, our free cash flow after dividends reached RON 93 mn in 6m/18.

Q2/18	Q1/18	Q2/17	Δ%2	Key performance indicators (in RON mn)	6m/18	6m/17	Δ%
735	958	892	(18)	Clean CCS Operating Result 3	1,694	1,659	2
701	1,080	779	(10)	Operating Result	1,781	1,577	13
462	752	690	(33)	Clean CCS net income attributable to stockholders  3,4,5	1,214	1,276	(5)
434	854	592	(27)	Net income attributable to stockholders 4	1,288	1,210	6
0.0082	0.0133	0.0122	(33)	Clean CCS EPS (RON) 3,4,5	0.0214	0.0225	(5)
0.0077	0.0151	0.0104	(27)	EPS (RON) 4	0.0227	0.0214	6
1,388	1,796	1,714	(19)	Cash flow from operating activities	3,185	2,976	7
(637)	729	397	n.m.	Free cash flow after dividends	93	1,043	(91)

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. Unless specified differently, amounts related to Downstream represent totals of Downstream Oil and Downstream Gas.

2 Q2/18 vs. Q2/17;

3 Adjusted for exceptional, non-recurring items; Clean CCS (current cost of supply) figures exclude special items and inventory holding effects (CCS effects) resulting from Downstream Oil; special items include temporary effects from commodity hedging (in order to mitigate Income Statement volatility);  

4 After deducting net result attributable to non-controlling interests;

5 Excludes additional special income from a legal dispute reflected in the financial result.

OMV Petrom will organize a live presentation of the results for Q2 2018 on August 2, 2018, starting 3.00pm (local time) / 2.00pm (CEST) / 1.00pm (BST). The presentation will last approximately 20 minutes, followed by a Q&A session, and will be hosted by Christina Verchere (CEO & President of the Executive Board) and Stefan Waldner (CFO & Member of the Executive Board).

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 Investor Relations › Financial calendar and events › Quarterly publications.  

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