OMV Petrom will allocate special dividends of almost 1.87 billion lei

• The total value of dividends granted by the company this year amounts to 4.44 billion lei, equivalent to a yield of 12%

• OMV Petrom will present its results for the second quarter on July 31

OMV Petrom will allocate special dividends of almost 1.87 billion lei, following yesterday's vote of the oil and gas producer's shareholders, as can be seen from the company's report published on the website of the Bucharest Stock Exchange (BVB).

The unit dividend is 0.03 lei, which, compared to yesterday's share price in the second part of the stock exchange session, 0.782 lei, is equivalent to a gross yield of 3.8%. To receive the dividend, investors must own shares in the company on August 12, with payments due on September 3, according to stock market reports.

OMV Petrom allocated another round of dividends this year, worth 2.57 billion lei, so that the total amount that the company will distribute to shareholders this year amounts to 4.44 billion lei. The total unit dividend is 0.0713 lei, which compared to the company's share price at the end of last year, 0.5745 lei, is equivalent to a gross return of 12.4%.

Recently, OMV Petrom updated its dividend policy, offering new guidance on total distributions, namely an allocation of around 50% of cash flows from operating activities each year until 2030, compared to 40% until now.

"OMV Petrom is committed to providing shareholders with a competitive return during the business cycle, including the payment of an increasing dividend, in line with financial performance and investment requirements, considering the company's long-term financial soundness. In a market environment favorably and at the management's discretion, special dividends could also be distributed, provided that the company's investment plans are financed," a company report from last month states.

According to the document, the company maintains its objective of increasing its basic dividend per share by 5% - 10% per year until 2030.

"In addition, the company provides new guidance to distribute total dividends (basic and special) between 40-70% of cash flows from operating activities each year through 2030. Total dividends are expected to represent approximately 50% of cash flows from operating activities, on average, for the period 2022-2030 (40% forward), in the base price scenario," the June 18 report states.

The oil and gas producer will report its second-quarter results on July 31.

The Austrians from OMV own 51% of OMV Petrom, while the Romanian State, through the Ministry of Energy, has 20.64% of the oil and gas producer.