The company’s sales declined 16% in the first nine months, to RON13.62 billion, as international oil prices halved compared with the same period of 2014.
In the third quarter, the company posted a loss of RON46 million, from a profit of RON691 million in the second quarter and a profit of RON1.02 billion in the third quarter last year. Third quarter sales dropped 12%, to RON4.81 billion.
“In the first nine months of 2015, the group financial performance was severely affected by the approximately 50% drop in oil prices. In a persistently ongoing low crude price environment, we have decided to reduce our future oil price assumptions, which required impairments of upstream assets. The negative impact in upstream was only partly compensated by the good results in downstream, capitalizing on our integrated business model and supported by improved refining margins and higher products demand,” said company CEO Mariana Gheorghe. Ca efect al reparațiilor capitale planificate la sondele-cheie de gaze din România, producția de hidrocarburi a scăzut cu 3%.
She added OMV Petrom continued efforts to contain capital spending and operational costs.
The group’s hydrocarbon output came in flat year-on-year, as past investments and discoveries compensated for the natural decline and the currently reduced investments.
“In partnership with ExxonMobil, we have further pursued our exploration activities in the Neptun Deep block, with four wells finalized this year and the fifth started drilling. We will continue to adjust our level of activity while maintaining a strong balance sheet. Moreover, as previously stated, future investments remain dependent on long term, stable and investment-friendly taxation and regulatory framework as well as supportive market fundamentals,” said Gheorghe.
OMV Petrom is majority owned by Austria’s OMV. Romania, through the Ministry of Energy, owns 20.63%, while investment fund Fondul Proprietatea (FP.RO) owns 18.99%.