OMV Petrom grows profit four-fold on favorable crude price and cost management measures

OMV Petrom's net income stood at around EUR 358 million (RON 1.52 billion) in the first half of the year, which is more than four times the profit it made during the same interval last year and almost double the net profit for the entire 2009. The company's sales, excluding the petroleum excise tax, were of EUR 1,9 billion (RON 8.3 billion) during the first half of the year, which was 14 percent higher than the same period of 2009. “In 6m/10, results were well above last year’s level, driven by the favorable crude price environment and cost management measures. In Romania, following the implementation of a package of austerity measures by the government, contraction in both private and public sector consumption is now expected to be much deeper,” writes the company in its financial results report sent earlier this morning to the Bucharest Stock Exchange. "During the second quarter of 2010, we continued to deliver solid results despite weakening demand conditions, thanks to our strong financial discipline, tight cost management and optimized operations. […] We will intensify our investment efforts and continue to sharpen our focus on cost management in order to withstand weakening market conditions. Moreover, we will prepare the implementation of the share capital increase for which we received authorization from our shareholders at the AGM on April 29, 2010 whilst pursuing the alignment with State’s initiative to sell part of its stake in Petrom (11.84%),” said Mariana Gheorghe, Petrom CEO. Read the entire report in English here: OMV petrom report H1 2010