RO OMV Petrom’s net profit shrinks by 43% in Q3 on low oil price and environment charges

Romanian oil, gas and energy producer OMV Petrom, part of Austrian group OMV, announced its net profit plunged by 43% in June-September (Q3) compared to the same period last year to RON 758 million (EUR 160 mln), despite a 10% year-on-year increase in sales, to RON 6.87 billion (EUR 1.46 bln).

The company’s net earnings dropped in Q3 due to unfavorable oil prices and special items mainly consisting in costs estimated for future soil remediation in relation to Arpechim refinery (closed down in 2011).

The group’s operating results not including special items deteriorated by 27% year-on-year, to RON 1.23 bln (EUR 260 mln) in the third quarter.

Special items comprised net charges of RON 246 mln while inventory holding losses amounted to RON 44 mln.

In the first nine months, the company reported a modest 3% advance in net profit to RON 2.76 billion (EUR 585 mln) as sales increased by 13%, to RON 18.2 billion (EUR 3.86 bln).

The company’s shares dropped by 2% on the financial release, but recovered slightly to minus 1.7% later in the day. The company’s market capitalisation is RON 24.8 bln (EUR 5.2 bln).

(Photo: OMV Petrom on Flickr)