In the second quarter of 2011, Petrom reported a net profit of RON903 million.
“The second quarter operational result was burdened by lower hydrocarbon production due to the decline at some key fields in Romania and the Petrobrazi refinery six-week planned shutdown,” said Mariana Gheorghe, Chief Executive Officer of OMV Petrom.
Petrom, the Romanian arm of Austria’s OMV (OMV.VI), said clean earnings before interest and taxes, or EBIT, decreased 16% on the year to RON1.06 billion in the second quarter, hurt by lower crude oil prices and falling sales volumes.
The Urals crude price, the reference oil price for Romania, was 7% lower in the second quarter of 2012 compared to the same period a year earlier.
The result from hedging had a negative impact on EBIT of RON68 million, compared to the negative level of RON134 million recorded in the same period of 2011. Including special items (mostly restructuring charges), reported EBIT shows a 2% increase against the second quarter of 2011, Petrom said in its financial report.
Group oil, gas and natural gas liquids production in the second quarter inched down 2% on the year to 16.6 million barrels of oil equivalent.
In Romania, total production declined 3% to 15.4 million boe. Domestic crude oil production was 7.2 million barrels, 3% lower on the year, due to natural production decline in two key fields at Suplac and Videle.
“In Kazakhstan, oil and gas production slightly increased compared to the same period of 2011, to 1.1 million boe, mainly due to higher gas production in the Tasbulat and Turkmenoi fields and higher oil and gas production in Komsomolskoe,” the report showed.
Petrom reported consolidated sales of RON6.2 billion in the second quarter, up 17% on the year. Sales volumes, however, declined 3% from the year-earlier period, broadly in line with the production slowdown.
In the first half of 2012, Petrom posted net profit of RON2.02 billion, up 19% on the year. Consolidated sales rose 19% to RON12.2 billion.
“In the first half of 2012 we achieved better financial performance compared with the same period in 2011, thanks to marginally higher crude price and favorable FX environment,” said Mariana Gheorghe.
Results are calculated according to IFRS.
OMV Petrom is 51.01%-owned by Austrian group OMV. The Economy Ministry holds a 20.63% stake in the company, while investment fund Fondul Proprietatea (FP.RO) owns 20.11%.
Tuesday, Petrom closed down 1.15% at RON0.386 a share in Bucharest. (EUR1=RON4.5378)