Romanian oil and gas producer Petrom ups profit and sales in first six months

Romanian oil and gas company OMV Petrom's net profit was 16 percent higher in the first half of 2012, to some RON 2 billion – or around EUR 460 million, the company announced.

"In the first half of 2012 we achieved better financial performance compared with the same period in 2011, thanks to marginally higher crude prices and a favorable FX environment,” said Mariana Gheorghe, CEO of OMV Petrom. The group's sales were 19 percent higher in this first half of the year compared to the same period of 2011, to some EUR 2.7 billion (or RON 12 billion). The oil and gas producer performed worse on net profit in the second quarter of the year compared to the first, with the net income halving quarter-on-quarter, to some RON 643 million – or some EUR 145 million. In the second quarter of the year, sales volumes decreased by 4 percent compared to Q1/12 mainly as a result of the Petrobrazi refinery shutdown. The six-week planned shutdown was to allow the upgrade of the crude vacuum distillation unit. OMV Petrom's marketing business was burdened by challenging market conditions in the region with impact on retail volumes and margins, according to the company. Due to the refinery shutdown, the total quantity of refining input in Q2/12 was almost half compared to the level recorded in Q2/11 while total refining output in Q2/12 was 37 percent lower compared to the second quarter of 2011. Total refined product sales dropped by 8 percent, due to lower exports. Romania's Petrom contributed some EUR 616 million of the total earnings before taxes and income for the OMV group, up 7 percent on the first half of 2011. The OMV group's EBIT was of EUR 1.53 billion, 11 percent higher than in H1 2011. Corina Chirileasa, corina@romania-insider.com (the average exchange rate for the first half of the year was EUR 1 = RON 4.38, and for the second quarter, EUR 1 = RON 4.42) (photo source: Arhivafoto.ro)