Petrom estimates a net profit decline by 21% in 2020

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OMV Petrom estimates for this year a profit of 2.81 billion lei, down 21% on the previous year. The budget was built at a price of USD 60 for a barrel, but the price has now halved, according to e-nergia.ro. Investments will increase by 1.6 billion lei.

“From OMV Petrom’s point of view, the surplus of production together with the increased uncertainty in the world economic environment, generated by the spread of coronavirus, will generate a high volatility of the market environment in the coming months,” the company says.

In Romania, daily hydrocarbon production is estimated at 138.3 thousand boe/ day, down 4.7% compared to 2019; this decrease mainly reflects the natural decline and the sale of deposits. This is due to a slight increase of 1% in oil production and a 9% decrease in gas production.

Natural gas sales will decrease by 6% compared to 2019, as a result of the reduction of own production and the estimation of diminution of the portfolio of final customers, decrease generated by the need to fulfill the legal obligations (obligations to trade natural gas on centralized markets and to deliver natural gas to the regulated market).

The net energy production is estimated to decrease by 10% compared to 2019, as a result of the decrease in the obligation to supply electricity on the regulated market.

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