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Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

OMV Petrom reports non-cash net impairment under revised oil price forecast

Romanian oil company OMV Petrom estimates non-cash net impairments of around RON 350 million (EUR 72 mln) after tax, triggered by the revision of price assumptions.

In Upstream, the company expects total non-cash net impairments of around RON 800 mln after tax, as it reduced its long-term Brent oil price assumptions from USD 75/bbl to USD 60/bbl.

The impairments include both write-offs of exploration intangibles and net impairments for tangible assets.

Meanwhile, in Downstream Gas, the company revised the long-term power and CO2 price assumptions taking into account the improved power generation market. This led to the full reversal of impairments for the Brazi gas-fired power plant, amounting to around RON 450 mln after tax.

Bottom line, the above changes in the planned commodity prices will result in net impairment charges of around RON 350 mln after tax in Q3/20.

"Our integrated business model proves once again its benefits, especially in an expected lower oil price environment. We will continue to pursue our strategy execution, with the aim to supply energy in a sustainable and cleaner manner, with natural gas playing a significant role in the energy transition," said Christina Verchere, CEO of OMV Petrom.

[email protected]

(Photo source: the company)

Normal
Profile picture for user andreich
Andrei Chirileasa
Editor-in-Chief

Andrei studied finance at the Bucharest Academy of Economic Studies and started his journalism career in 2004 with Ziarul Financiar, the leading financial newspaper in Romania, where he worked for ten years, the last six of which as editor of the capital markets section. He joined the Romania-Insider.com team in 2014 as editor and became Editor-in-Chief in 2016. He currently oversees the daily content published on Romania-Insider.com and likes to stay up to date with everything relevant in business, politics, and life in Romania. Andrei lives with his family in the countryside in Northern Romania, where he built their own house. In his free time, he studies horticulture and tends to his family’s garden. He enjoys foraging in the woods and long walks on the hills and valleys around his village. Email him for story ideas and interviews at [email protected] 

 

OMV Petrom reports non-cash net impairment under revised oil price forecast

Romanian oil company OMV Petrom estimates non-cash net impairments of around RON 350 million (EUR 72 mln) after tax, triggered by the revision of price assumptions.

In Upstream, the company expects total non-cash net impairments of around RON 800 mln after tax, as it reduced its long-term Brent oil price assumptions from USD 75/bbl to USD 60/bbl.

The impairments include both write-offs of exploration intangibles and net impairments for tangible assets.

Meanwhile, in Downstream Gas, the company revised the long-term power and CO2 price assumptions taking into account the improved power generation market. This led to the full reversal of impairments for the Brazi gas-fired power plant, amounting to around RON 450 mln after tax.

Bottom line, the above changes in the planned commodity prices will result in net impairment charges of around RON 350 mln after tax in Q3/20.

"Our integrated business model proves once again its benefits, especially in an expected lower oil price environment. We will continue to pursue our strategy execution, with the aim to supply energy in a sustainable and cleaner manner, with natural gas playing a significant role in the energy transition," said Christina Verchere, CEO of OMV Petrom.

[email protected]

(Photo source: the company)

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