OMV Petrom Q3 profit down 27 percent to RON 864 mln on financial loss

Newsroom 07/11/2012 | 15:15

The net income of Romanian oil & gas company OMV Petrom fell by 27 percent in the third quarter (Q3) to RON 864 million (EUR 190 million), due to a financial loss of RON 237 million (EUR 52.2 million), while sales added 17 percent to RON 6.9 billion (EUR 1.5 billion).

OMV Petrom’s net profit fell by 1 percent to RON 2.8 bln (EUR 616 million) on nine months. Sales added 17 percent in the same period to RON 19 billion (EUR 4.1 billion).

The financial loss was caused by higher interes charges, mainly from the discounting of receivables.

“In the third quarter of 2012 our operational result was overall in line with the same period of last year, mainly supported by a stronger USD against RON,” said Mariana Gheorghe, CEO of OMV Petrom. “Moreover, we are pursuing new growth opportunities in the neighboring Black Sea region, in joint venture with ExxonMobil.”

The company, which employs close to 22,000 people, plans to invest between EUR 0.8 billion and 1.2 billion annually for the coming years, according to the CEO. The investments assume “robust market fundamentals and investment-friendly regulatory and fiscal regimes.”

In exploration and production (E&P), the clean EBIT rose by 3 percent y/y to RON 1.4 billion (EUR 308 million), driven by stronger USD against RON and lower losses from hedging. The average Urals crude price dropped by 3 percent to USD 109.26 per barrel.

OMV Petrom’s hydrocarbon production fell by 1 percent to 16.75 million barrels of oil equivalent in Q3. The company’s exploration expenses soared 54 percent to RON 69 million (EUR 15.2 million), driven by increased seismic acquisition activity.

In gas and power (G&P) the clean EBIT increased almost four fold to RON 59 million (EUR 13 million). The company said this was due to better terms for domestic gas sales, the output of the Dorobantu wind farm and from the recently inaugurated Brazi power plant.

Petrom’s gas sales decreased only by 2 percent, while the estimated natural gas consumption in Romania decreased by 7 percent, due to lower industry demand.

The regulated domestic gas price remained unchanged at RON 492 (EUR 108) for 1,000 cubic meters, while the imported gas price was USD 450 for 1,000 cubic meters.

In refining and marketing (R&M), the clean EBIT, including current cost of supply, rose by 42 percent to RON 189 million (EUR 41.6 million). It was sustained by better refining margins, due to higher product quotations for gasoline and improvements at the Petrobrazi refinery.

Petrom’s refining output fell by 17 percent to 0.68 million tons, due to temporary logistics limitations on exports. Total refined products sales lost 9 percent to 1.29 million tons, due to lower exports and wholesales. The company operated 799 retail stations in Q3.

Ovidiu Posirca

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