In the second quarter of 2010, Petrom reported a net profit of RON718 million.
“The second quarter shows good operational performance. On the back of the favorable crude price environment we benefited from increased production levels and resurgent fuel and gas demand from both the industry and commercial sectors, in particular in Romania,” 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, rose 42% on the year to RON1.26 billion in the second quarter, supported by higher oil price environment, higher gas sales volumes and lower production costs.
The Urals crude price, the reference oil price for Romania, was 49% higher in the second quarter of 2011 compared to the same period a year earlier.
The result from hedging had a negative impact on EBIT of RON134 million, compared to the negative level of RON12 million recorded in the same period of 2010. The results include special items of RON89 million, mainly relating to the impairment of Petrom’s Kultuk exploration license in Kazakhstan.
“After interpreting the 3D seismic data acquired at the Kultuk oil field, it was decided not to pursue further appraisal due to the lack of economic viability,” Petrom said.
Petrom reported consolidated sales of RON5.3 billion in the second quarter, up 20% on the year, mainly driven by higher oil and product prices and increased gas sales volumes. The results were partly offset by the negative impact from oil price hedges.
In the first half of 2011, Petrom posted net profit of RON1.74 billion, up 14% on the year. Consolidated sales rose 23% to RON10.3 billion.
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 0.94% at RON0.315 a share in Bucharest. (EUR1=RON4.267)