- Strategy 2030: resilience, significant progress, key targets maintained
- Scaling up and accelerating low- and zero-carbon projects: ~2.5 GW of renewable electricity capacity (including through partnerships) and >5,000 electric vehicle charging points by 2030
- Neptun Deep is progressing according to plan with a view to first deliveries of natural gas in 2027
- Increasing dividends distributed to an average of 50% of cash flows from operating activities by 2030
- Net Zero emissions operations by 2050
OMV Petrom, the largest integrated energy producer in Southeast Europe, continues to transform its activities and products, according to the company’s 2030 Strategy, to contribute to a low-carbon future. The strategic ambition remains unchanged – to be a leader in the energy transition in South-East Europe, through the three strategic directions: Transition to low and zero carbon emissions, Regional development of natural gas and Optimization of traditional activities. To support the implementation of the 2030 Strategy, OMV Petrom is investing 11 billion euros in the period 2022-2030. The 2030 strategy allows OMV Petrom to achieve the following:
- Development of the largest natural gas resource in the EU;
- Development of the largest portfolio of new electricity projects from renewable sources in Romania;
- The largest investments for the decarbonization of transport in Romania through the production of sustainable fuels and the development of the most extensive network of charging stations for electric vehicles.
Christina Verchere, Chief Executive Officer of OMV Petrom: “We are maintaining our commitment to our 2030 Transformation Strategy for a low-carbon future, while making some key adjustments: a faster development of renewables, a more ambitious target in electro-mobility, while making progress with our Neptun Deep offshore natural gas project, which is progressing on schedule with a view to start production in 2027. With rigorous capital discipline and solid financial performance, we aim to increase dividend distributions, being very competitive compared to similar companies in the sector”.
Transition to low and zero carbon emissions
Low- and zero-carbon projects will represent around a third of the total €11 billion of investments, respectively €3.7 billion in the period 2022-2030 and a fifth of CCA EBIT excluding special items[1] in 2030 In less than 3 years since the launch of the strategy, the company has made significant progress:
• Electricity from renewable sources: the current portfolio of solar and wind projects exceeds the original proposed target for 2030 of more than 1 GW. The company is now targeting ~2.5 GW of renewable electricity capacity by 2030, including from partnerships. This translates into an annual net electricity production of ~4.7 TWh, of which 2.4 TWh net for OMV Petrom to be achieved by 2030.
• Sustainable fuels: The company recently announced the final investment decision for a new sustainable aviation fuel (SAF) and renewable diesel (HVO) production facility at the Petrobrazi refinery, together with two green hydrogen production units, which will be used in the production of biofuels. Based on SAF/HVO capacity of 250 thousand tons/year, OMV Petrom is set to become the first major producer of sustainable fuels in the region by 2028. Using EU grant funds, OMV Petrom accelerated its green hydrogen projects in Petrobrazi, with the aim to reach a capacity of 100 MW by 2030. Regarding biofuels in general, we have adjusted our pace from our original plan to reach 600 thousand tons/year of production by 2030, and now we expect to we produce 300 thousand tons/year, reflecting the level of technology maturity and market developments.
Electro-mobility
After acquiring the Renovatio network, OMV Petrom is on track to reach its ambition of around 1,000 charging points by the end of the year, positioning itself as a very important player in electro-mobility. The company now aims to have more than 5,000 charging points by 2030 and thus become the largest provider of electro-mobility services in Romania
Regional development of natural gas
Natural gas is an important component in OMV Petrom’s strategy, due to its role in the energy transition and for the security of energy supply.
OMV Petrom has over 40 years of experience as an operator in the Black Sea and believes that this region holds significant hydrocarbon potential. Currently, the company focuses on offshore activities in Romania and Bulgaria.
• Neptun Deep is at the center of this strategic pillar, contributing to Romania’s energy independence and economic growth. The development of Neptun Deep is important to ensure sustainable long-term production growth and low production costs while generating significant profits. Since the launch of the 2030 Strategy in 2021, the project has made significant progress, with the final investment decision being taken in 2023. All main execution contracts have been awarded. The project is progressing according to plan with a view to the first production of natural gas in 2027, falling within the total budget of up to 4 billion euros.
• In the Han Asparuh perimeter in Bulgaria, OMV Petrom became the operator of the license and continues to carry out exploration activities. Overall, the contribution of regional development projects to the total value of EBIT CCA excluding special items is estimated at around one third in 2030, mainly from Neptun Deep.
Optimization of traditional activities
The company continues to leverage its integrated business model with a focus on value over volume and operational excellence across all business segments. The cumulative share of investments allocated to traditional assets will decrease to around 45% by 2030, from close to 100% in 2023, still having a solid contribution of over 50% to CCA’s EBIT excluding Group specials in 2030.
• Exploration and Production: The strategy focuses on opportunities in the area of current deposits, close to existing infrastructure. The company plans to drill approximately 50 new wells annually and carry out more than 400 well workovers, targeting an average annual investment of up to €400 million, excluding Neptun Deep. From 2021, the annual production decline has been reduced to around 6%, and the ambition for 2030 is to reduce it below 5%, excluding Neptun Deep and before portfolio optimization. OMV Petrom aims to maximize economic resource recovery from mature fields and, with Neptun Deep volumes, reduce the cost of production to around $8/boe by 2030.
• Refining and Marketing: The Petrobrazi Refinery is well prepared for high utilization rates, with a particular focus on efficiency and sustainability, the transition of production to higher value products and the expansion of the biofuels value chain. Integration with our E&P business will remain strong throughout the decade, supported by our own crude production. In retail, through the target of 20% increase in fuel sales per station and doubling the margin from the activity of selling complementary products, we aim for a 20% increase in profitability per station by 2030, all compared to 2020 levels.
• Gas and Power: Own natural gas production will continue to be complemented by supply activities to meet diverse customer needs in an environment of increased natural gas demand. Natural gas from the Neptun Deep project will contribute to a total sales volume of approximately 60 TWh by 2030. Meanwhile, the Brazi power plant will support Romania’s transition to green energy by integrating with renewable energy sources to provide a profile of electricity in the band. Around 30% of all electricity sales will come from green sources by the end of this decade, helping our customers transition to cleaner energy.
The financial framework
The strategy is supported by three key elements of the financial framework, which support the attractiveness of our investment proposal: • Rigorous capital discipline: Allocation of capital within strategic pillars ensures appropriate investment returns and payback periods, taking into account strategic and operational risks and opportunities.
OMV Petrom accelerates annual investments in 2024-2026 to €1.7 billion, mainly for Neptun Deep and low- and zero-carbon projects, while ensuring solid double-digit internal rates of return.
• Strong financial performance: The company targets competitive operating profits across all strategic pillars and business segments, with a higher total return on capital employed of approximately 15% and an EBIT target of over €1.5 billion, both for 2030.
• Attractive returns for shareholders: OMV Petrom will continue to offer a competitive level of basic dividends and discretionary special dividends. The Company intends to distribute to shareholders total dividends (basic and special) of approximately 50% of cash flows from operating activities, on average over the strategy cycle, up from the 40% indicated in December 2021. In addition, the company provides guidance on annual dividend allocation of 40-70% of operating cash flows.
OMV Petrom confirms that Strategy 2030 is progressing according to plan, a transformation for a future with low carbon emissions, simultaneously with the increase in dividends distributed to shareholders
• Strategy 2030: resilience, significant progress, key targets maintained
• Scaling up and accelerating low- and zero-carbon projects: ~2.5 GW of renewable electricity capacity (including through partnerships) and >5,000 electric vehicle charging points by 2030
• Neptun Deep is progressing according to plan with a view to first deliveries of natural gas in 2027 • Increasing dividends distributed to an average of 50% of cash flows from operating activities by 2030
• Net Zero emissions operations by 2050 OMV Petrom, the largest integrated energy producer in Southeast Europe, continues to transform its activities and products, according to the company’s 2030 Strategy, to contribute to a low-carbon future. The strategic ambition remains unchanged – to be a leader in the energy transition in South-East Europe, through the three strategic directions: Transition to low and zero carbon emissions, Regional development of natural gas and Optimization of traditional activities.
To support the implementation of the 2030 Strategy, OMV Petrom is investing 11 billion euros in the period 2022-2030. The 2030 strategy allows OMV Petrom to achieve the following:
• Development of the largest natural gas resource in the EU; • Development of the largest portfolio of new electricity projects from renewable sources in Romania;
• The largest investments for the decarbonization of transport in Romania through the production of sustainable fuels and the development of the most extensive network of charging stations for electric vehicles.
Christina Verchere, Chief Executive Officer of OMV Petrom: “We are maintaining our commitment to our 2030 Transformation Strategy for a low-carbon future, while making some key adjustments: a faster development of renewables, a more ambitious target in electro-mobility, while making progress with our Neptun Deep offshore natural gas project, which is progressing on schedule with a view to start production in 2027. With rigorous capital discipline and solid financial performance, we aim to increase dividend distributions, being very competitive compared to similar companies in the sector”.
Transition to low and zero carbon emissions Low- and zero-carbon projects will represent around a third of the total €11 billion of investments, respectively €3.7 billion in the period 2022-2030 and a fifth of CCA EBIT excluding special items[1] in 2030 In less than 3 years since the launch of the strategy, the company has made significant progress:
• Electricity from renewable sources: the current portfolio of solar and wind projects exceeds the original proposed target for 2030 of more than 1 GW. The company is now targeting ~2.5 GW of renewable electricity capacity by 2030, including from partnerships. This translates into an annual net electricity production of ~4.7 TWh, of which 2.4 TWh net for OMV Petrom to be achieved by 2030.
• Sustainable fuels: The company recently announced the final investment decision for a new sustainable aviation fuel (SAF) and renewable diesel (HVO) production facility at the Petrobrazi refinery, together with two green hydrogen production units, which will be used in the production of biofuels. Based on SAF/HVO capacity of 250 thousand tons/year, OMV Petrom is set to become the first major producer of sustainable fuels in the region by 2028. Using EU grant funds, OMV Petrom accelerated its green hydrogen projects in Petrobrazi, with the aim to reach a capacity of 100 MW by 2030. Regarding biofuels in general, we have adjusted our pace from our original plan to reach 600 thousand tons/year of production by 2030, and now we expect to we produce 300 thousand tons/year, reflecting the level of technology maturity and market developments.
• Electro-mobility: After acquiring the Renovatio network, OMV Petrom is on track to reach its ambition of around 1,000 charging points by the end of the year, positioning itself as a very important player in electro-mobility. The company now aims to have more than 5,000 charging points by 2030 and thus become the largest provider of electro-mobility services in Romania. Regional development of natural gas Natural gas is an important component in OMV Petrom’s strategy, due to its role in the energy transition and for the security of energy supply.
