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Romania's OMV Petrom Activates Business Continuity Plan to Ensure Supply Amid COVID-19 Crisis

Romania's top oil and gas group OMV Petrom [BSE:SNP] said on Friday it has activated its  business continuity plan in order to ensure the security of supplies amid the global crisis generated by the new coronavirus outbreak.

The plan includes specific measures to ensure the company's critical operations, taking into account the different stages of the coronavirus situation, OMV Petrom said in a statement posted on the Bucharest Stock Exchange, BVB.

The company also said that it is maintaining its dividend proposal of 0.0310 lei ($0.01/0.01 euro) per share for 2019, which will be discussed at the annual OGMS on April 27 2020.

"We are dealing with an unprecedented global situation, which requires a swift and firm response from people, businesses and authorities. We have mobilised 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," OMV Petrom CEO Christina Verchere said.

"[...] we recognise 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," the company also said.

OMV Petrom's net profit fell by 11% year-on-year to 3.6 billion lei in 2019, while sales rose 13% year-on-year to 25.4 billion lei driven by higher sales volumes prices of natural gas, higher sales volumes for petroleum products and higher prices for electricity.

OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.011% stake in OMV Petrom. The Romanian state, through the energy ministry, owns 20.639%, and 26.52% is in free float on the Bucharest Stock Exchange and the London Stock Exchange.

Shares of OMV Petrom traded 6.43% higher at 0.2980 lei as at 1413 CET on Friday on the Bucharest Stock Exchange.

(SeeNews, March 20, 2020)

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