WOOD Company Financial Services will act as Issuer Market Maker for OMV Petrom to enhance the liquidity of the largest energy company in Southeastern Europe

9/3/2020

OMV Petrom (SNP), the largest energy company in South-Eastern Europe, will benefit as of September 3rd from the issuer’s market-making services provided by WOOD & Company Financial Services, leading investment bank in Emerging Europe.

"We are delighted to see two very important companies such as OMV Petrom and WOOD & Company Financial Services joining forces to increase the liquidity of the shares of the largest Romanian company and, at the same time, a champion in the energy field in South-Eastern Europe. OMV Petrom shares are already one of the most liquid on BVB, but an improved liquidity could increase its chances of being included in the FTSE Russell indices for Emerging Markets", stated Radu Hanga, Chairman of the Board, Bucharest Stock Exchange.

"The contract for Issuer Market Making services with Wood & Company is aiming to increase the liquidity of our shares, reduce price volatility and attract more investors in OMV Petrom shares. Our company was one of the best performing stocks in the BET index in 2019, offering a total shareholder return of 59%. This year, despite difficult times generated by the COVID-19 pandemic, we have decided to maintain our initial dividend proposal and distributed a 15% higher yoy dividend per share, with a payout ratio of 48%. Going forward we are committed to continue maximizing returns to our shareholders so that we remain an appealing investment proposition, supported by our high safety standards, sustainable and integrated business, earnings resilience and cost efficiency", said Alina Popa, Chief Financial Officer, OMV Petrom.

The Issuer's Market Maker activity will be provided by WOOD & Company Financial Services based on a contract signed with OMV Petrom.

"WOOD & Company is proud to become Issuer Market Maker for OMV Petrom. We think that this step will help to increase the overall liquidity which at the end will be positive for all market participants", said Josef Kohout, Head of Trading Prague, WOOD & Company Financial Services.

"We are delighted by OMV Petrom’s decision to cooperate with WOOD & Company Financial Services in the Issuer's Market Maker program, launched by BVB a year ago, as it is very important to improve the liquidity of this landmark company for the Bucharest Stock Exchange. We already have 5 companies that benefit from this market making service and we hope to have as many companies as possible understand that a better liquidity of their shares attracts more investors, especially in the case of companies that have the perspective to be included in the FTSE Russell indices for Emerging Markets, as it is the case of OMV Petrom", said Adrian Tanase, CEO, Bucharest Stock Exchange.

OMV Petrom shares registered a turnover of almost RON 890mn (EUR 187mn) in 2019 at BVB, meaning a 9.2% market share. OMV Petrom is one of the most liquid shares on the Bucharest Stock Exchange, being included in almost all BVB indices, respectively in BET, BET-TR, BET-XT, BET-XT-TR, BETPlus, BET-NG, BET- BK and ROTX.

The IMM is the participant in the BVB’s trading system that has taken on the role of sustaining the liquidity of a financial instrument, based on a contract concluded with the issuer of the respective financial instruments, as well as with BVB.

The specific parameters that apply to the IMM activity provided by WOOD & Company Financial Services for OMV Petrom shares are available here.

Further information regarding the general framework for the IMM Program can be found here.  

 

About OMV Petrom
OMV Petrom is the largest energy company in South-Eastern Europe, with an annual Group hydrocarbon production of 55.4 million boe in 2019. The Group has a refining capacity of 4.5 million tons annually and operates an 860 MW high efficiency power plant. The Group is present on the oil products retail market in Romania and neighboring countries through 802 filling stations, at the end of June 2020, under two brands – OMV and Petrom.
OMV Aktiengesellschaft, one of the largest listed industrial companies in Austria, holds a 51.011% stake in OMV Petrom. The Romanian State, through the Ministry of Economy, Energy and Business Environment, holds 20.639% of OMV Petrom shares, Fondul Proprietatea holds 9.998%, and 18.352% is the free float on the Bucharest Stock Exchange and the London Stock Exchange.
OMV Petrom is the largest contributor to the state budget, with contributions of 30.4 billion euro in taxes and dividends paid between 2005 and 2019.
Since 2007, OMV Petrom has included corporate responsibility principles into its business strategy. Between 2007-2019, the company has allocated approximately 66 million euro to develop communities in Romania, focusing on environmental protection, education, health and local development.
On July 29, 2020, OMV Petrom announced its support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD) on climate change risks and opportunities.

 

About WOOD & Company Financial Services
WOOD & Company is a leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, its footprint spans the region and touches investors around the globe. WOOD & Compny Financial Services is active on stock exchanges in Bucharest, Warsaw, Budapest, Prague and Vienna.