OMV Petrom SA, Romania’s biggest oil company, said its first-semester profit rose 18 percent because of stable production.
Net income advanced to 2.39 billion lei (EUR 545 million), although sales reportedly fell 5 percent, to 11,57 million lei (EUR 2,6 billion). Responsible for th decline are the lower crude sales volumes and the lower product prices, the Bucharest-based company said in a regulatory statement today.
“We have further pursued our significant investment program, which has enabled us to successfully stabilize production, as the slightly higher hydrocarbon volumes in Romania fully compensated the effect of temporary technical problems in Kazakhstan”, Chief Executive Officer Mariana Gheorghe said in the statement. “Offshore, we completed the largest 3D seismic program in the Black Sea and, in joint venture with ExxonMobil, we aim to resume drilling in the Neptun block towards the end of 2013 or early 2014. G&P performance reflected the challenging market environment with depressed demand for both gas and electricity as well as significantly lower electricity prices. In R&M, the retail business was stable while refining margins decreased due to lower product cracks.”
We have further pursued our significant investment program, which has enabled us to successfully stabilize production.
“Going forward, we are striving to deliver our ambitious 2013 investment program of more than EUR 1.2 bn, while addressing the challenges in the gas and electricity markets, and relying on an investment-friendly regulatory and fiscal framework”, added Mariana Gheorghe.
Earnings before interest and taxes rose 10 percent to 2.97 billion lei (EUR 676 million) from 2,7 billion lei a year earlier, Petrom said. “Despite higher exploration expenses, following the intensive 3D seismic acquisition campaigns this year, the 6m/13 EBIT was 10% higher than in 6m/12, as the latter was burdened by the refinery shutdown in Q2/12”, Petrom said.