Concorde Securities - OMV Petrom - Good-looking commodity play at a cheap price

Report

Concorde Securities

Attila Vago

OMV Petrom - Good-looking commodity play at a cheap price

In H1 2018, OMV Petrom (Petrom) reached a 10% clean CCS ROACE (vs 7.7% in H1 2017) and generated FCF after dividends of EUR 20 mln (vs. EUR 230 mln in H1 2017) with the effect of doubling CapEx YoY. The company’s net cash amounted to approx. RON 3 bln at the end of 30 June, 2018 (i.e. RON 0.05 a share) and represented around 16% of the current market cap.

09/08/2018 13 EN

Provider

Concorde Securities

Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.

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Analysts

Attila Vago

Other Reports from Concorde Securities

Mihaly Gajda

Mihaly Gajda

Petrom - OMV Petrom In Line With Expectations; 5.8% Dividend Yield

Opinion: Overall, the quarterly results were positive and in line with expectations. The strategy update is a constructive step. The dividend remains defensive due to elevated CAPEX, but this high CAPEX is temporary. While some negative regulatory measures remain in place and new ones are emerging in the form of a higher royalty burden, which triggered the impairment . Initial commentary on the exploration well in Bulgaria sounded negative.

PREMIUM

February 5, 2026 February 5, 2026 8 EN

Mihaly Gajda

Mihaly Gajda

OMV - OMV Is Delivering on consensus and pays EUR 4.40 Dividend

OMV reported Clean CCS EBIT of EUR 1,153 mn in Q4 2025, down 9% QoQ and 16% YoY. This was slightly below the analyst consensus of EUR 1,168 mn, but above Concorde’s estimate of EUR 1,127 mn. Clean CCS profit attributable to shareholders reached EUR 548 mn, in line with our expectations and above the consensus of EUR 491 mn, as many analysts appear to have overlooked the unusually low minority interest in the quarter. This reflects the fact that the largest impairment was booked in Romania, where OMV owns 51%, resulting in a relatively high minority interest impact.

PREMIUM

February 5, 2026 February 5, 2026 9 EN

Gabor Bukta

Gabor Bukta

Halfway out of the turbulence

Summary We leave our TP at 20.0 GBP and reiterate our Buy recommendation, reflecting the ongoing restructuring story. Following the fiscal Q3/26 conference call held on 29 January, we repeatedly concluded that the fruitful strategic overhaul is under way. The management is building back confidence, so that’s good news for value investors. The problem is that they have to manage high-capacity growth (+24% seats and +30% ASK) during fiscal Q2/27. Key question remains how the market will be able to absorb this substantial capacity. Establishing the Israeli base or a Russia-Ukraine ceasefire and...

PREMIUM

February 3, 2026 February 3, 2026 9 EN

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OMV Petrom - Good-looking commodity play at a cheap price

Petrom - OMV Petrom In Line With Expectations; 5.8% Dividend Yield

OMV - OMV Is Delivering on consensus and pays EUR 4.40 Dividend

Halfway out of the turbulence

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