In the first quarter of 2013, Petrom posted a net profit of RON1.33 billion.
Sales were down 9% to RON5.3 billion, from RON5.8 billion in January-March 2013, mainly due to lower sales volumes of crude oil, gas and electricity and lower oil prices, the company said in a statement.
Petrom, which is majority owned by Austria’s OMV, said the group’s profitability was also affected by the new construction tax in Romania, with lower oil prices and deteriorated refining margins also impacting the result. As a result, the earnings before interest and tax (EBIT) went down 7% on the year to RON1.47 billion in the first quarter.
“Depressed demand in the gas, power and fuels markets combined with lower refining margins were only partially compensated by the operational excellence and cost management initiatives across all divisions,” said Mariana Gheorghe, Petrom’s chief executive officer.
Hydrocarbon production was rather stable at 16.4 million barrels of oil equivalent, as the slightly higher volumes in Romania were offset by the lower contribution from Kazakhstan. However, gas sales volumes went down 18% mainly due to weak demand from the industrial sector and milder winter, Petrom said.
Last year, Petrom reported a net profit of RON4.8 billion, the largest ever reported by a Romanian corporation. (EUR1=RON4.4328)