Petrom profits increased by 14 percent to RON 1.74 billion, on H1, 2011

Gas and oil producer Petrom has posted an EBIT result of EUR 578 million for the first six months of 2011, which is a 44 percent increase to the EUR 401 million posted in the first half of 2010. Segment sales increased by 10 percent, from EUR 2.32 billion in the first half of 2010 to EUR 2.55 billion. Petrom Group’s net income increased by 14 percent, from RON 1.52 billion in the first half of 2010 to RON 1.74 billion.

The Exploration and Production (E&P) unit EBIT results increased from EUR 428 million in the first half of 2010 by 36 percent to EUR 582 million. The average Ural’s price, the reference oil price in Romania, registered a 42 percent growth. The regulated gas price for domestic producers also went up by 5 percent.

The Refining and Marketing (R&M) unit EBIT results decreased by 96 percent, from EUR 34 million in the first half of 2010 to 1 million. Profits suffered from a decline in the OMV indicator refining margin and a lower contribution from the petrochemicals business.

The Gas and Power (G&P) unit EBIT results slightly decreased by 4 percent which makes the total profit for the first six months of 2011 EUR 6 million. Petrom Group decided to exit the chemicals business by stopping production at Doljchim’s methanol plant. However, the gas logistics business strongly contributed to the group profits of the G&P unit.

Total hydrocarbon production of Petrom Group increased by 2 percent, from 184.000 boe/d in the first semester of 2010, to 187.000 boe/d in the first semester of 2011. Crude oil and NGL production remained constant at 16.6 million bbl, while natural gas production increased by 3 percent, from 2.5 bcm in the first six months of 2010 to 2.6 bcm in the first half of 2011.

Mariana Gheorghe, CEO of Petrom, says that progress was registered in the deep exploration joint venture with ExxonMobil and that the company benefited from increased oil prices and rising demand for oil and gas products from the commercial and industry sector. Petrom will enter the electricity business in the second half of 2011, once two electricity supply units will be finalized.