OMV Petrom reports non-cash net impairment under revised oil price forecast

Romanian oil company OMV Petrom estimates non-cash net impairments of around RON 350 million (EUR 72 mln) after tax, triggered by the revision of price assumptions.

In Upstream, the company expects total non-cash net impairments of around RON 800 mln after tax, as it reduced its long-term Brent oil price assumptions from USD 75/bbl to USD 60/bbl.

The impairments include both write-offs of exploration intangibles and net impairments for tangible assets.

Meanwhile, in Downstream Gas, the company revised the long-term power and CO2 price assumptions taking into account the improved power generation market. This led to the full reversal of impairments for the Brazi gas-fired power plant, amounting to around RON 450 mln after tax.

Bottom line, the above changes in the planned commodity prices will result in net impairment charges of around RON 350 mln after tax in Q3/20.

"Our integrated business model proves once again its benefits, especially in an expected lower oil price environment. We will continue to pursue our strategy execution, with the aim to supply energy in a sustainable and cleaner manner, with natural gas playing a significant role in the energy transition," said Christina Verchere, CEO of OMV Petrom.

(Photo source: the company)