Romania's oil and gas giant Petrom ups profit and sales nine months into 2013

Romanian oil and gas company Petrom, controlled by Austrian OMV, posted a net profit of some EUR 823 in the first nine months of 2013, up 27 percent on the same period of 2012. The growth was higher in the third quarter of this year, of 47 percent year-on-year, to some EUR 277 million. Its sales however decreased by 5 percent at nine months, and by 6 percent year-on-year in the third quarter. The nine-month turnover stood at some EUR 4.07 billion, while the sales for the third quarter were of EUR 1.56 billion. “In the third quarter we continued to deliver a solid performance, benefiting from a favorable crude price environment and cost optimization. In E&P, over the first nine months of 2013, we managed to achieve the first year-on-year production stabilization at Group level since privatization, as a result of continuous investments,' said Petrom CEO Mariana Gheorghe in a statement. The company's exploration offshore is progressing and, in joint venture with ExxonMobil, Petrom aims to resume drilling in the Neptun block around mid-2014. The company's Gas &Power performance reflected the challenging market environment with subdued demand and low electricity prices, while in Refining & Marketing, refining margins remained under pressure, according to the CEO. “Going forward, we will maintain our focus on delivering on our operational excellence initiatives and investment program. These initiatives remain essential prerequisites for a sustainable performance and cash flow generation that will support our ambitious investment program in the Black Sea in the coming years, in an investment-friendly taxation and regulatory environment,” she added. The full financial report in English here. Petrom is the largest company in Romania by turnover, with a yearly turnover of EUR 5.9 billion, and a record profit of EUR 885 million. The company, which runs around 800 gas stations across the country, awarded some EUR 360 million in dividends for last year. The main shareholder in Romania's Petrom is Austrian OMV, with 51 percent of the shares, while the Economy Ministry has 20 percent, and Fondul Proprietatea – managed by Franklin Templeton – another 19 percent, according to data from the Bucharest Stock Exchange. editor@romania-insider.com