“Our integrated business model proves once again its benefits, especially in an expected lower oil price environment. We will continue to pursue our strategy execution, with the aim to supply energy in a sustainable and cleaner manner, with natural gas playing a significant role in the energy transition,” said Christina Verchere, CEO of OMV Petrom.
In Upstream, the long-term Brent oil price assumptions are now reduced to $60/bbl from $75/bbl applied before. For 2021, the company expects a continued macroeconomic impact of the COVID-19 pandemic and confirms its oil price forecast of $50/bbl; while its oil price expectations for 2022 and 2023 were reduced to $60/bbl from $70/bbl and $75/bbl, respectively.
For the years 2024 to 2029, OMV Petrom assumes a Brent oil price of $65/bbl (previously $75/bbl), which is expected to gradually decline to $60/bbl until 2035.
The updated oil price assumptions are expected to result in non-cash net impairments of around RON800 million after tax, which include both write-offs of exploration intangibles and net impairments for tangible assets.
In Downstream Gas, the long-term power and CO2 price assumptions were revised taking into account the improved power generation market. This led to the full reversal of impairments for Brazi gas-fired power plant, amounting to around RON450 million after tax.
OMV Petrom reported a net profit of RON867 million in the first half of 2020, down 56% on the year, and a turnover of RON10 billion, down 11% on the year.