OMV Petrom’s profit rises by 53% to EUR 420 mln in first half

Romanian oil, gas and power producer OMV Petrom, controlled by Austrian group OMV, reported a net profit of RON 1,975 million (EUR 420 mln) in the first half of this year, 53% higher than in the same period last year.

Hydrocarbon production decreased sharply, especially the natural gas output, as well as the electricity output, but fuel sales increased.

The results surpassed the market’s expectations and the group’s shares rose more than 2% on the Bucharest Stock Exchange after the results were released. Even so, local analysts see the company’s shares as “the cheapest (or undervalued) in the basket of blue chips’ index BET,” according to Ziarul Financiar daily.

The group’s consolidated sales of RON 11,320 mln (EUR 240 mln) in Jan-Jun increased by 15% compared to the same period last year, following positive evolution of prices and volumes for petroleum products and electricity, partially offset by the decrease in natural gas volumes sold. Downstream Oil represented 75% of total consolidated sales, Downstream Gas accounted for 22%, and Upstream for 2% (sales in Upstream being largely intra-group sales rather than third-party sales).

(Photo source: Flickr/OMV Petrom)