The company reported a profit before tax of RON957 million for the first nine months, compared with RON3.23 billion in the same period in 2019.
In the third quarter alone, consolidated sales revenue dropped 26% on the year, to RON5 billion, impacted by lower market prices and lower sales volumes.
The company posted an operating loss of RON44 million compared with an operating profit of RON939 million in the third quarter of 2019, mainly driven by the net impairments triggered by the revision of price assumptions and the unfavorable market environment, as the lower prices and the COVID-19 crisis had a negative impact on the group’s performance.
Net income attributable to stockholders was a loss of RON 41 million, compared with a profit of RON785 million in the third quarter of 2019.
Investments amounted to RON816 million in the third quarter, 24% lower on the year, of which RON635 million for organic investments, while the difference went into to the acquisition of the Han Asparuh offshore Bulgaria interest.
For the full year 2020, OMV Petrom expects the average Brent oil price to be at $40/bbl, compared with $64/bbl in 2019.
Following the COVID-19 outbreak, demand for oil products and electricity is expected to be below 2019,while demand for gas is expected to be broadly similar to 2019, supported by gas intensive industries.
OMV Petrom said in its report it remains keen to see the Neptun Deep strategic project being developed. The final investment decision depends on a range of factors including a stable and competitive fiscal framework and a free gas market.
Group hydrocarbon production decreased by 5.97% in the third quarter due to lower production in Romania, while production in Kazakhstan slightly increased.
OMV Petrom is 51% owned by Austria’s OMV, 20.6% by the Romanian state, while 8.4% is distributed among Pillar II pension funds. Fondul Proprietatea owns 7% in Petrom and SIFs own 1.8%.