WOOD Flash - OMV Petrom: strategy update

OMV Petrom held a capital markets day (CMD) on 19 June, to update its 2030E strategy and provide new targets to the market. The previous strategy update was held at the end of 2021, when the macro environment was less favourable. In this plan, therefore, the assumptions on crude oil and gas prices, and refining margins, have all been revised upwards. The 2030E target for Clean CCS EBIT has decreased slightly to EUR 1.4bn, from EUR 1.5bn, but expectations for the interim period are much higher. Capex for 2022-30E remains unchanged at EUR 11.0bn, of which EUR 3.7bn is still earmarked for low and zero carbon businesses. The focus of the upstream segment is Neptun Deep, which is on target for start-up in 2027E. In refining and marketing, the main focuses are biofuels and electric mobility, with significant growth targeted in the non-fuel business. In gas and power, the renewables target has been increased from 1TWh of power by 2030E to 2.4TWh, the biggest change among the targets in the plan. OMV Petrom has also updated its dividend policy and now expects to distribute 50% of operating cash flow over the period, up from 40% previously.