Petrom reported a net profit of RON118 million in the second quarter of 2016.
“In the first six months of 2017, we converted favorable market conditions into solid operational and financial performance. We were supported by increased oil prices, strong refining margins and higher demand for all our products. In addition, we continued our strict cost discipline,” said OMV Petrom CEO Mariana Gheorghe.
Its operating profit reached RON1.66 billion in the first six months, with both upstream and downstream showing significant increases. Operating cash flow of RON3 billion in the first six months, up 68% year-on-year, combined with lower capital expenditure and RON0.8 billion dividend payment, led to a free cash flow after dividends of RON1 billion.
The company revised down its 2017 investment plan to EUR0.7 billion from EUR0.8 billion, due to wells portfolio optimization, savings and project revisions, but added it is prepared for a ramp up in investments in the second half of 2017, especially given its strong balance sheet.
“In July, we signed the contract for the sale of Dorobantu wind park, as part of our strategy to focus on core activities. In addition, we resumed operations at the Brazi power plant, at half capacity, on July 5. On August 1, the transfer of 19 marginal fields took place. A new round of divestments was initiated in line with our strategic direction of value over volume,” said Gheorghe.
Last year, OMV Petrom posted a net profit of RON1 billion from a loss of RON690 million in 2015, despite 10% drop in sales revenue.