OMV Petrom's net profit down 80% y/y in H1 after solidarity contribution in Q2

The net profit announcedby OMV Petrom for H1 plunged by 80% y/y to RON 944mn (EUR 190mn), but this was due to high-base effects doubled by the delayed payment of the solidarity contribution – accrued during the past financial year amid extraordinarily favourable circumstances but paid this year.

In Q2 alone, the company announced RON 537mn (EUR 110mn) net losses precisely because of the solidarity contribution. But this was already priced in, and the company's shares have not reflected negatively the news. The company paid in Q2 this year RON 1,983mn (EUR 400mn) as a solidarity contribution after its net profit surged by more than three times y/y to EUR 2bn in 2022.

Furthermore, the company's sales and profit from operations reflected the lower fuel prices as well. Thus, the sales revenues decreased by 30% y/y to RON 17.9bn in H1 this year, while the operating revenues dropped by 44% y/y to less than RON 3.2bn.

"In the first six months of the year, energy prices on global markets have fallen significantly from records recorded in 2022 and are approaching pre-energy crisis levels," said Christina Verchere, Petrom CEO.

Profit before tax and solidarity contribution was RON 3.48bn (-37% y/y). Even so, this is three times the profit before tax in H1, 2021 (RON 1.17bn), and the net profit in H1 this year is close to the net profit in H1, 2021 (RON 980mn).

(Photo: Yunkiphotoshot/ Dreamstime)