OMV Petrom - Q1/23 Clean Results Were Very Much In Line With Our Estimates

Q1/23 clean results were very much in line with our estimates

 OMV Petrom reported Q3/23 clean CCS EBIT at RON 2.1bn (-7% YoY) very
much in line with our estimate of RON 2.1bn amidst a deteriorating commodity
price environment. Clean CCS net income attributable to stockholders came in
RON 1.88bn (+5% YoY) vs our estimate of RON 1.87bn, implying clean CCS
EPS of RON 0.03.

 Cash flow from operating activities was very strong at RON 4.66bn, up 77%
YoY, mainly due to significantly lower W/C needs (receivables, in particular).
Cash CapEx increased significantly to RON 1.12bn from RON 0.74bn YoY, out
of which upstream investments accounted for around 50%. FCF after
dividends came in at RON 3.29bn compared to RON 1.91bn in Q1/22. Clean
annualized ROACE improved from 15.5% to 36% on the back of improved
cash generation ability.

 Net cash including leases amounted to ca. RON 16.73bn at the end of March,
2023, or RON 0,269 a share (ca. 55% of current market cap!). OMV Petrom
pays a base DPS of RON 0.0375/share for the financial year 2022, up 10%
YoY. The total gross number of dividends to be distributed is more than RON
2.3bn of the net income for the year 2022.