OMV Petrom profit down 61 pct to RON 405 mln in H1 over reduced sales, low oil price

Oil major OMV Petrom, listed on the Bucharest Stock Exchange, reported a net profit of RON 117 million in the second quarter of this year, a decrease of 83 percent compared with the same period of 2015. In addition, the oil company registered a drop of 61 percent of its profit from the first half of this year to RON 405 million due to lower sales and reduced oil price.

 Moreover, the sales were lower with 20 percent to RON 3.6 billion in Q2 compared to the second quarter of 2015 mainly because of the decrease in revenues from crude oil products due to the drop in crude oil price and the smaller sold quantities.

“In the first half of 2016, the difficult market environment adversely impacted our financial results, outweighing the effects from improved operational performance as well as strict cost discipline and cash management. The Upstream clean EBIT mostly reflected the drop in oil and gas prices, partly mitigated by the reduction in production costs. The Downstream clean CCS EBIT slightly improved, as a result of the favorable development of provisions for outstanding receivables in the gas business, which offset the effects of weaker refining margins and the planned refinery turnaround. As the difficult market conditions persisted, we have continued our tight cost and capital expenditure management. Consultations regarding upstream oil and gas taxation are expected to continue in the second half of the year,“ said Mariana Gheorghe, CEO of OMV Petrom.

In the first six months of the year, the consolidated sales represented RON 7.2 billion, lower by 18 percent than the first semester of 2015, mainly because of the drop in crude oil price and smaller sales of natural gas.

Georgiana Bendre

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