In January-March 2012, Petrom posted net profit of RON1.38 billion.
The company’s sales were 4% lower at RON5.8 billion, while the earnings before interest and tax (EBIT) fell 12% to RON1.58 billion.
The EBIT decrease is mainly due to higher exploration costs, as Petrom is pursuing alongside ExxonMobil the largest seismic program in the Black Sea. Also, a negative impact came from a decline in oil sales, partially offset by lower production costs, the company said in its quarterly report.
“In E&P (exploration and production), we managed to keep hydrocarbon production stable and intensified our exploration activities,” said Mariana Gheorghe, chief executive officer of Petrom.
Besides the Black Sea operations, the company signed a partnership with Repsol to jointly explore deep areas onshore.
The company noted that its gas sales declined in the first quarter, mainly due to warmer weather, but the marketing activity was better.
“Refining margins improved and we see the retail business showing signs of recovery in Romania,” Gheorghe also said.
“Going further, we will continue our significant annual investment program of more than EUR1 billion, a prerequisite to maintaining our sustainable performance, which will allow us to support potential upstream growth opportunities in the Black Sea.”
Petrom, in which Austria’s OMV holds 51%, is listed on the Bucharest stock market and its shares closed up 4.95% Monday. (EUR1=RON4.3207)