OMV Petrom: Direct impact of US tariffs on company will be minor

OMV Petrom expects the impact of US tariffs on the company to be minor, under current conditions, it is mentioned in the issuer's quarterly report, signed by CEO Christina Verchere.

"Geoeconomic fragmentation, trade wars and changes in global supply chains could lead to increased costs for OMV Petrom, as well as volatile commodity prices. This may have a negative impact on economic growth, which in turn may affect demand for OMV Petrom's products. The direct impact of US tariffs on OMV Petrom is estimated to be minor, but in the event of a deterioration in the economic situation, we expect negative effects on demand and commodity prices," the report states.

According to the company's management, the consequences of increased geopolitical volatility, the implementation of the European Green Deal program and related regulatory measures cannot be reliably estimated at this time.

The main uncertainties that may influence the Group's results are those related to the price risks of tradable commodities, currency risks, operational risks, as well as political and regulatory risks. "Regarding regulatory risk, the company is in dialogue with the Romanian authorities on issues relevant to the industry. In recent years, we have observed a significant number of fiscal and regulatory initiatives implemented (such as compensation schemes, regulated/capped prices for natural gas and electricity, and EU surtaxation or solidarity contribution). This increases legislative volatility and influences the entire business environment," according to the document. For the first quarter of this year, OMV Petrom reported sales revenues of 8.9 billion lei, 5% more than in the first three months of last year, while net profit amounted to 1.07 billion lei, down 24%. The decline was mainly due to the negative contribution of the Gas and Power segment, as a result of legislative changes that generated lower margins for electricity.

For this year, the company has budgeted sales revenues of 32.9 million lei, up 12% compared to 2024, while net profit is expected to decrease by 17%, to 3.43 billion lei. The budget was made based on assumptions of an average Brent crude oil price of 75 dollars per barrel and refining margins around eight dollars per barrel.

The Austrians at OMV own about 51% of the oil and gas producer, whose stock market valuation is about 46 billion lei.