RAPORT ANALIST September 20, 2016
Data primei distribuții către public: Sep 20, 2016

OMV Petrom: announces minimum 30% dividend payout from 2016E earnings, cash flow permitting

On 19 September, OMV Petrom made a disclosure concerning its dividend policy. The addition to its policy is as follows: “OMV Petrom currently targets, subject to adverse developments in the external market, a proposed dividend from the 2016 net earnings of a minimum of 30% in the case it is fully covered by the Company's free cash flows before dividends." We do not believe this is a change in policy on behalf of management, but is rather a clarification in response to an erroneous belief on the part of certain market participants. Petrom has a history of paying out 40-50% of its earnings in dividends. However, no dividend was paid out from the 2015 earnings. This led some to question whether there had been a change in policy, and whether shareholders could expect to receive dividends in the future.