The CCS (current cost of supply) operating result excluding special items was relatively stable (+2% year-over-year), reaching RON3,5 billion, with a lower contribution of the third quarter, as 2019 was mainly impacted by a decline in crude oil prices and hydrocarbon volumes, compared with the same period in 2018. Investments totalled RON2.8 billion and the contribution to Romania’s state budget was RON9 billion in January-September 2019.
On the Upstream segment, the operating result excluding special items was RON2.1 billion, down 12% from the year-earlier period. The average Urals price was USD64.66/bbl, down 9% on the year.
The group’s daily production fell 6%, mainly due to natural decline of the fields and the transfer of nine fields. Natural gas production in Romania dropped 8% and production costs was USD11,1/boe, relatively stable.
On the Downstream Oil segment, the CCS operating result excluding special items was USD1.1 billion, up 16% on the year. The utilization rate of the Petrobrazi refinery was 96% in the first nine months of 2019, reaching 99% in the third quarter. This reflects an excellent operating performance, with OMV Petrom indicator refining margin reaching USD4.67/bbl, being impacted by the evolution of international prices of oil products and crude oil. The group’s retail sales volumes grew 4% due to increased demand in Romania and in the region.
The Downstream Gas segment registered an operating result excluding special items of RON197 million, stable compared with the first nine months of 2018. Natural gas sales to third parties reached 30.13 TWh, up 3% on the year. Net electricity production fell 9% to 2.13 TWh due to unfavourable market condition in the second quarter of 2019.
On the Downstream Oil segment, the company continues negotiations with Auchan to extend the partnership in the stores of Petrom filling stations. Investment projects completed in 2019 include the Polyfuel unit, the modernization of the Coker unit in Petrobrazi and the modernization of the fuel terminal in Arad.