“The outlook of the Romanian economy remains positive with the gross domestic product expected to grow by 1.5% this year. Improved economic prospects should see a gradual rise in nominal wages as risks to companies’ cash flows diminish,” Petrom said in its financial report Wednesday.
However, risks posed by the sovereign debt crisis in eurozone countries could potentially affect the speed and strength of domestic recovery, it said.
Petrom reported a net profit after minorities of 1.74 billion lei (EUR417 million) in the first half, up 14% on the year. Consolidated sales rose 23% to RON10.3 billion, mainly driven by higher oil and product prices and increased gas sales volumes.
The company estimates Romanian fuel and gas demand will remain stable or increase slightly throughout the second half of 2011, “in line with the development of the economy.”
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%.
Wednesday morning, Petrom’s shares traded up 3% at RON0.3245 in Bucharest. (EUR1=RON4.267)