OMV Petrom (BVB: SNP) has calculated total “impairment adjustments” of EUR 420 million, which will be seen in the financial results of the last quarter of 2025, arising mainly as a result of the agreement between the OMV group and the Romanian government at the end of last year.
“Following the principles agreed between OMV Petrom and the Romanian state for the 15-year extension of production licenses, announced in the Current Report of December 10, 2025, we estimate that the company’s Operating Result for Q4/25 will reflect an impairment adjustment for other financial assets of approximately EUR 300 million in the E&P segment related to abandonment obligations,” according to a note to investors sent by OMV Petrom.
“Additionally, in the context of this agreement generating a higher tax burden on E&P, as well as due to a sharper decline in production for some mature fields, we expected a net impairment adjustment of approximately EUR 120 million related to E&P tangible assets to be recorded in the company’s Operating Result for Q4/25.
These items, totaling approximately EUR 420 million, are estimated to be classified as special items. “We estimate that the company’s Operating Result excluding special items for Q4/25 will not be impacted by any of these adjustments.”
The government of Romania announced on December 10 that it had adopted measures “to rebalance the cooperation” with OMV Petrom for the next 15 years and a principled agreement between the two parties that “creates the premises for a balanced and predictable relationship, aimed at contributing to the consolidation of Romania’s energy independence for the near future.” Romania signed the privatisation contract for Petrom with OMV nearly 20 years ago.
The government extended by 15 years the exploitation licenses for the (offshore) perimeters taken over upon privatisation and by two years the exploration license for the offshore perimeter Neptun Deep, in exchange for the company accepting to pay 40% higher royalties on the onshore gas, covering the cost of closing down wells that are no longer in use (environmental cleansing) evaluated at some point in time at EUR 600 million and giving up all the litigations against Romania.
iulian@romania-insider.com
(Photo source: Brandportal.omvpetrom.com)
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