20 Mar 2020 09:02
OMV Petrom S.A.
Investor News
20 March 2020
OMV Petrom is ready to respond to COVID-19 and the new market environment
► Specific measures have been implemented to ensure security of supply and to protect our employees and customers
► Proven track record of managing impact of global crises; integrated business model and leaner organization; intensified efforts to reduce financial impact
► 27 April OGMS convened as planned, dividend proposal maintained
OMV Petrom, the largest energy company in South-Eastern Europe, implemented a series of measures to ensure the smooth running of activities and to protect the health of employees and customers, while supporting the efforts of the authorities and the population to combat the spread of COVID-19 virus.
Christina Verchere, CEO OMV Petrom: "We are dealing with an unprecedented global situation, which requires a swift and firm response from people, businesses and authorities. We have mobilized our teams and are working closely with the authorities to secure the energy the country needs, while ensuring the right measures for the health of our employees and customers."
To ensure the security of supply, we have activated our Business Continuity Plan which includes specific measures to ensure the running of our critical operations, taking into account the different stages of the coronavirus situation. A dedicated management team monitors the situation daily and is working intensively to contain the impact on operations and critical infrastructure. The activity in the areas of Upstream production, refinery and power plant was organized to ensure the continuity of the operations, while implementing the measures imposed by the authorities.
To protect our employees and customers, we implemented working from home for the employees who can perform their activities remotely, as well as flexible working hours. Online, video and electronic applications are used at a large scale for meetings and signing of documents electronically, thus ensuring, as much as possible, social distancing.
All the measures recommended by the authorities were implemented in our OMV and Petrom filling stations, from strict hygiene measures to prevention messages for customers and temporary suspension of gastro areas, with products available only to-go. The employees of the filling stations are equipped with disinfectants, disposable gloves and masks. In addition, the company has supplemented the deliveries of products in both filling station networks, to meet the needs of customers.
We have a proven track record of managing crises, as demonstrated by the manner in which we navigated through the 2008-2009 economic crisis and the low oil price environment in 2014-2016. Our integrated business model, with the Petrobrazi refinery on the oil value chain and the Brazi power plant on the gas value chain, is expected to support our financial results.
However, we recognize that this time we are facing an unprecedented difficult situation, with a severely depressed oil price environment accompanied by a weakening economic situation, which impose timely and appropriate measures to reduce the impact on our financial position. Consequently, we will intensify our efforts for CAPEX prioritization, portfolio optimization and cost reduction while maintaining our commitment to safety, to reduce our carbon footprint and to create long-term value to our stakeholders.
Annual OGMS is being convened as planned for 27 April 2020 (first convening). Shareholders are strongly recommended, to the extent possible, to access the supporting materials for OGMS in electronic format, to vote by correspondence and use the e-mail with extended electronic signature as communication mean. The agenda of the meeting also includes the Executive Board's proposal for distribution of dividends for the financial year 2019, the same as the preliminary one announced on 6 February 2020, namely a gross dividend of RON 0.0310/share.
About OMV Petrom
OMV Petrom is the largest energy company in South-Eastern Europe, with an annual Group hydrocarbon production of 55.4 million boe in 2019. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high efficiency power plant. The Group is present on the oil products retail market in Romania and neighboring countries through 793 filling stations, at the end of 2019, under two brands - OMV and Petrom.
OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.011% stake in OMV Petrom. The Romanian State, through the Ministry of Economy, Energy and Business Environment, holds 20.639% of OMV Petrom shares, Fondul Proprietatea holds 9.998%, and 18.352% is the free float on the Bucharest Stock Exchange and the London Stock Exchange.
OMV Petrom is the largest contributor to the state budget, with contributions 30.4 billion euro in taxes and dividends paid between 2005 and 2019.
Since 2007, OMV Petrom has included corporate responsibility principles into its business strategy. Between 2007-2019, the company has allocated approximately 66 million euro to develop communities in Romania, focusing on environmental protection, education, health and local development.
Contact:
OMV Petrom Investor Relations
Tel: +40 372 161930, Fax: +40 372 868518
E-mail: investor.relations.petrom@petrom.com