OMV Petrom Q1 net profit up two fold to RON 618 mln over higher sales

OMV Petrom group posted a net profit of RON 618 million in the first quarter of this year, growing by 114 percent compared with the net profit during the same period of 2016, according to the consolidated financial results published on Thursday.

The net profit of the shareholders amounts to RON 618 million, compared with RON 219 million in the first quarter of 2016 and the net profit CCA of the shareholders climbed to RON 330 million. The profit per share was RON 0.0109, compared with 0.0051 in the same period of 2016.

The results from CCA exploitation excluding the special elements worth RON 767 million, improved compared with RON 412 million from the first quarter, due to the more favorable market conditions and the increasing demand.

The result from the exploitation of the group for the first quarter of the year increased by RON 789 million, compared with RON 346 million from the first quarter of 2016, mainly due to the higher revenues from sales and the elimination of the income taxes on special constructions starting 2017.

The net financial result decreased from a loss of RON 3 million in the first quarter of 2016 to a loss of RON 56 million in the first quarter of 2017, as the value from the first quarter of 2016 was influenced by the positive result of the appeal made by the company against the financial control at its Kazakhstan subsidiary.

„The net profit amounted to RON 124 million, while the effective rate of the profit tax was 17 percent in the first quarter of the year,” says the company.

„In the first quarter of the year we registered an improved treasury flow from the exploitation activities, of RON 1.3 billion, together with the investments reduction, leading to an expanded treasury flow of RON 646 million. In Upstream, we continued to reduce the production costs and the drop was in line with the estimations for 2017, due to the contribution of Lebada Est NAG project. The result was also sustained by the fiscal easing measures from Romania, starting January,” said Mariana Gheorghe, CEO OMV Petrom.

OMV Petrom group registered sales of RON 4.6 billion, a growth by 27 percent compared with January- March 2016, due to the significantly higher prices at oil and the higher volumes of natural gas and energy, that counterbalanced the oil products quantity sold and the natural gas prices.

OMV group is the main shareholder of Petrom, with a stake of 51.01 percent, while the Economy Ministry owns a stake of 20.64 percent and Fondul Proprietatea owns 20.11 percent.