OMV Petrom 3Q Net Profit Up 47% To RON1.3B

11.07.2013 By Bogdan Neagu

Romania’s leading oil and gas company OMV Petrom (SNP.RO) Thursday reported a 47% increase in its third-quarter net profit to 1.27 billion lei (EUR286.7 million), helped by higher oil prices and lower production costs.

In the third quarter of 2012, Petrom reported net profit of RON864 million.

The company’s sales were down 6% in the quarter, to RON6.57 billion, mainly due to lower crude sales volumes that more than offset higher sales of petroleum products and gas, Petrom said its quarterly financial report.

It said the earnings before interest and tax (EBIT) amounted to RON1.59 billion, up 23% from RON1.29 billion in July-September 2012, due to higher realized oil prices and strict cost management.

For the first nine months, Petrom’s net profit reached RON3.66 billion, 27% higher than RON2.89 billion in the same period a year ago.

Sales were down 5% on the year to RON18.15 billion in January to September, while EBIT rose 14% to RON4.56 billion.

“In E&P (exploration and production) over the first nine months of 2013, we managed to achieve the first year-on-year production stabilization at Group level since privatization, as a result of continuous investments,” said Mariana Gheorghe, chief executive officer of Petrom.

Gheorghe said the gas & power division’s performance reflected the challenging market environment with subdued demand and low electricity prices, while refining margins remained under pressure, reducing the profitability of the refining and marketing unit.

Petrom, where Austria’s OMV holds 51% of the shares, continues with its investment plans of RON1.2 billion for 2013, mainly in exploration and production--drilling development wells and field redevelopment projects, the company said.