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Petrom’s business dwindle in T1; the group loses the seat of Romania’s leading company

13 May 2014

Petrom Group announced the unaudited financial results for the first quarter of 2014, and the figures show that gross profit amounted to 1.472 billion lei, higher than the fourth quarter of last year, when it was 1.4 billion lei, but declining relative to the reference period of 2013, when it was 1.582 billion lei. The group’s business for the first three months reached 5.296 billion lei, a lower value than the ones in the third quarter of 2013 (6.035 billion lei) and the ones in the first quarter of last year (5.789 billion lei).

Hydrocarbon production has remained stable

The financial report put the decrease of 6% of the gross profit adjusted for current cost of acquisition value (EBIT CCA) on account of 1.5% tax on special constructions,  on lower oil prices and on eroding of refining margins, but the degree of refining equipment use increased.

Projects in Exploration and Production also took most of the increase of 25% of investments made in the first quarter, compared with the same period in 2013. OMV Petrom stresses that hydrocarbon production has remained stable, although production increased slightly in Romania, and the group began exploration in Midia Deep perimeter. Regarding gas and electricity sales, those volumes decreased.

About the detailed financial elements, Mariana Gheorghe, CEO of Petrom, said: “Our financial performance in T1/14 (Q1 in 2014 – ed. n.) reflects a higher tax burden and a deteriorated market environment. Low demand in the gas, electricity and fuel markets, together with lower refining margins were partially offset by operational excellence initiatives and cost management in all business divisions.”

On the extraction of hydrocarbons from the Black Sea, Petrom CEO says that “our exploration portfolio expanded by ensuring participation in Deep Midia perimeter. In partnership with ExxonMobil, we are preparing for the next phase of drilling  in Deep Neptun perimeter, starting in this mid-year, while Ocean Endeavour oil rig is being prepared for operations in the Black Sea, and interpretation of 3D seismic data is in progress”. The group aims to invest 6 billion lei this year, if there is a “favorable investment framework” and “solid market foundation.”

Dacia becomes the company with the highest turnover in Romania

OMV Petrom wasn’t in 2013 the largest company in Romania anymore, after its business level (18.09 billion lei – 4.09 billion euros) was exceeded by those of Automobile Dacia SA, which recorded a turnover of 18.4 billion lei (4.16 billion euros), mentions Ziarul Financiar. The car manufacturer’s business increased with a thundering 45% compared to 2012, with an annual production of 342,000 vehicles, the largest volume so far for the company.

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