Tradeville analysis: Romanian energy companies results down in Q2, no growth perspective

The local energy producers registered new decreases of revenues and profits in the second quarter of the year, although the prices of crude oil and natural gas went up in this period on the international markets, according to an analysis by brokerage firm Tradeville.

Thus the shares of OMV Petrom dropped by 3.6 percent in the second quarter of the year, while Romgaz shares remained in the minimum area as before listing. Moreover, there are doubts regarding the OMV-Petrom shares price capacity of increase and especially, sustainable, compared with the current quotations, while for Romgaz there are minimum chances for a strong  increasing trend of shares price, although episodes of speculative increases are not excluded.

The investors’ reaction was determined by the fact that they anticipated a positive effect of the crude oil slight increase in price on the OMV Petrom results in the second quarter, but they continued to decrease, although the company continued its program of costs reduction. The perspectives for the following quarters are not optimistic either, taking into account that the potential of a durable increase in crude oil price is expected to be limited because of the continuous pressures, both for demand, and supply.  Romgaz continued the tendency of revenues and profitability drop, after the maximum reached in 2014. The natural gas production dropped by 6 percent in the first semester because of the hot weather from the beginning of the year and the reduction of demand from industrial clients and overlapped the low level prices from the beginning of the year. The company maintained its profit margins almost constant and reached its budget targets at bi-annual level.

Nuclearelectrica, the only local nuclear energy producer, reported a drop by 6 percent of the energy production, as a result of the temporary closure of one nuclear station unit for a double period compared with the usual one. The company had to sell a bigger energy quantity on short term, where the priced decreased by 7 percent.

Tradeville is the Romanian company that developed an online transactioning platform.

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Georgiana Bendre