OMV Petrom - Slightly weaker than expected Q1/21 results

 OMV Petrom posted Q1/21 clean CCS EBIT of RON 653 mn (-33% YoY), 7% lower
than our estimate of RON 701 mn. Clean CCS net income attributable to stockholders
came in at RON 520 mn (-32% % YoY), implying clean CCS EPS of RON 0.0092, as
against our estimate of RON 615 mn.
 Cash flow from operating activities also declined by 15% YoY to RON 1.15 bn mainly
due to lower operating results. Cash CapEx dropped by 40% YoY to RON 727 mn, of
which upstream investments accounted for almost 70%. FCF after dividends came in at
RON 424 mn compared to RON 136 mn in Q1/20. Net cash amounted to ca. RON 6.88
bn (incl. leases) at the end of March 31, 2021, or RON 0.122 a share (ca. 27% of current
market cap). Clean CCS ROACE stood at 5.7%, down from 12.5% reported for Q1/20
mainly due to depressed operating performance.
 Clean Operating Result was RON 311 mn vs. RON 99 mn in Q1/, mainly driven by
higher oil and gas prices. OMV Petrom’s avg. production dropped to 139 kboe/d in
Q1/21 (-8% YoY) mainly due to lower gas production. OMV Petrom’s avg. realised oil
price was USD 50.9/bbl in Q1/21, also up by 25% YoY. OpEx increased by 15% YoY
on account of the weakness in the USD against the RON and lower production.