OMV Petrom - 4Q 2012 results broadly in line with expectations
OMV Petrom 4Q 2012 results were close to our expectations in terms of clean EBIT but reported net profit was somewhat weaker on higher than expected interest expenses, special items and inventory losses at R&M.
At the E&P level, 1% higher realized crude price than anticipated compensated for marginally higher OPEX/boe (15.51 USD/boe vs. 15.3 USD/boe) and a weaker oil versus gas production (48% vs. 48.5% crude and NGL production in total production).
Regarding R&M, clean CCS refining EBIT stood close to zero, while we were expecting a small profit but marketing performed slightly better than we had foreseen. But inventory holding losses of RON 34 mn and special items of RON 63 mn brought R&M EBIT negative at RON 18 mn, versus an expected EBIT close to RON 100 mn.
G&P result came some 12% above our estimate probably on better margins for the gas sales.
Overall EBIT stood some 5% below our estimate due to R&M special items and inventory holding losses.
Financial expenses stood at RON 344 mn, some 30% higher than our estimate driven by higher interest expenses and thus the net profit reached RON 1.06 bn, 16% below our estimate.
2012 net profit stands at RON 4 bn. Assuming a 47% pay-out as per last year the dividend would reach RON 0.032, providing a dividend yield of 7.1%.
At the operating level results were close to our estimate, so we do not expect significant changes to our estimates. We keep our “buy” recommendation and RON 0.48 target price or RON 0.512 cum dividend TP.
Antibiotice - solid performance in 2012 but low chances for dividends
The pharmaceutical producer Antibiotice (ATB) reported its 4Q 2012 results for the first time under IFRS, making the comparison of quarterly figures difficult. FY 2012 revenues amounted to RON 297 mn, up 8% yoy, above the local pharmaceutical grow rate for prescription drugs (Rx) reported by Cegedim (+7% yoy). Raw materials and consumables increased by 17% yoy to RON 102 mn, while other expenses (no split offered) were down 6% yoy to RON 104 mn. Thus, EBIT increased by 17% yoy to RON 38 mn, while net profit increased by 33% to RON 27 mn on slightly lower financial losses.
Given that results were reported for the first time under IFRS, the company restated its share capital adjusting it by hyperinflation. Thus, it recorded an upward adjustment of the share capital of RON 197.7 mn which was reflected in the balance sheet as a downward adjustment in the reported result, which stood at the end of 2012 at - RON 153 mn, including also the result for this year. At a first glance, given the negative reported result it seems that the company cannot distribute dividends, if these would have to be paid out of the IFRS result.
We remind that under RAS, over 1-3Q sales were up 7% to RON 215 mn, while net profit stood at RON 27 mn, up 7% yoy. The latest report of market research company Cegedim shows that ATB ranked 11th on the local pharmaceutical market during 2012, with a market share of 2.5%.
