In the second quarter of 2013, OMV Petrom posted gas and power sales volumes of 11.5 TWh, the report noted.
Petrom’s hydrocarbon production fell 2.7% to 180,000 barrels oil equivalent (boe) a day in the second quarter of 2014, compared to 184,000 boe a day in the same period a year ago.
On a group level, OMV’s total hydrocarbon production was flat to 297,000 boe a day in the second quarter, while gas and power sales volumes rose nearly 5% to 89.15 TWh.
Production levels in the second quarter of 2014 decreased by 5% compared to the first quarter, mainly due to production shut-ins in Libya related to ongoing security issues and a weaker performance in Kazakhstan as a consequence of technical difficulties. This was partly offset by the successful start-up of Gudrun (Norway) and slightly higher production volumes in Austria and Romania, according to the report.
Whilst gas sales volumes increased compared to the first quarter of 2014, the performance of the second quarter was burdened by lower oil sales volumes which fell by 18% due to significantly lower liftings mainly in Norway and Libya.
Exploration expenses increased significantly to approximately EUR180 million mainly due to the recognition of unsuccessful wells in Gabon, Faroe Islands and Norway. Production costs increased in the second quarter, compared to the first three months of the year, following higher personnel costs in Romania and the production start-up of Gudrun, according to the report.
The development of oil prices had a marginally positive impact on the second-quarter performance. The major shutdown of the Petrobrazi refinery, necessary to complete the final stage of the investment program, led to higher levels of stored own crude. This resulted in unrealized profits of approximately EUR40 million, which are eliminated in the consolidation line.
The G&P (gas and power) market environment remains challenging, OMV said in its report. Though total gas sales and trading volumes increased compared to the second quarter in 2013, this was solely due to higher trading volumes. Last year’s substantial losses in the supply, marketing and trading business were largely eliminated, mainly due to the renegotiated gas supply contracts with Gazprom and Statoil.
The performance of the power business was burdened by a negative average spark spread in Romania mainly driven by the higher gas price, the report also reads.