In the first six months of 2013, Petrom, the Romanian arm of Austria’s OMV (OMV.VI), reported a net profit of RON2.4 billion.
Group sales declined 7% to RON10.72 billion in the first half, from RON11.57 billion a year earlier.
“The weak demand in oil and gas downstream, coupled with additional taxation introduced in 2013-2014, almost offset the benefits from gas price liberalization,” said Mariana Gheorghe, Chief Executive Officer of OMV Petrom.
“Nevertheless, we will continue our projects, particularly focusing on field redevelopment projects and exploration, both onshore and offshore.”
In its preliminary financial report, Petrom said earnings before interest and tax, or EBIT, fell 29% on the year to RON2.1 billion in January-June, hurt by a one-off charge related to the impairment of one of the group’s assets in Kazakhstan, as well as by higher costs following the introduction of a new construction tax.
A planned shutdown of the company’s Petrobrazi refinery in the second quarter also affected the earnings.
Group production costs rose 22% to $17.86 per barrel of oil equivalent, mainly due to higher production costs in Romania and negative foreign currency developments.
Exploration expenditure increased 67% on the year to RON428 million, chiefly reflecting increased activity in the Black Sea blocks.
The group’s oil and gas production reached 32.72 million boe at the end of June, down 1% on the year. Crude oil production in Romania declined 1.1% to 14 million bbl, but domestic gas production inched up 0.8% to 17.1 million boe.
Oil and gas production in Kazakhstan decreased 21.8% to 1.6 million boe, mainly due to pipeline integrity issues in the Tasbulat field, Petrom said.
Petrom’s results are consolidated, unaudited and calculated according to IFRS.
On the Bucharest market Monday, Petrom closed up 0.51% at RON0.4766 a share. (EUR1=RON4.4415)