OMV Petrom, the biggest oil group in Romania, recorded a net profit of RON 2.66 billion (EUR 572 million) in the period January-September 2018, up 44% compared to the same period the previous year, when the net profit stood at RON 1.84 billion (EUR 404 million).

The net profit in the third quarter amounted to RON 1.38 billion (EUR 296 million), more than double the one reported in the same quarter of 2017, when it stood at RON 638 million (some EUR 140 million).

“In the first nine months of 2018, OMV Petrom benefited from improved commodity prices and higher power demand,” the company said in the report.

The group’s consolidated sales in the third quarter went up by almost a quarter year-on-year, reaching RON 6.26 billion (EUR 1.34 billion). The result was supported by higher prices for petroleum products and natural gas and by higher electricity sales volumes, partially offset by lower sales volumes of natural gas and petroleum products. This increased the ninth-month sales to RON 16.11 billion (EUR 3.46 billion), up 13% year-on-year.

The group’s total hydrocarbon production went down by 5% in January-September, to 43.91 million barrels of oil equivalent (boe). However, the company sold its oil at an average price that was 44% higher than in the first nine months of 2017.

“In Romania, daily hydrocarbon production was 153.3 kboe/d and total production stood at 14.1 mln boe. Crude oil and NGL production in Romania was 6.22 mln bbl, broadly in line with the production in Q3/2017, as the natural decline and marginal fields divestment effects were almost compensated by the production from new wells and workovers. Gas production in Romania decreased by 6% to 7.88 mln boe (Q3/17: 8.41 mln boe) mainly due to natural decline in main fields (Totea Deep and Lebada East),” the group said.

Investments in Upstream activities were 18% above the Q3/2017 level, mainly due to higher drilling activities. In the period January-September, the group finalized the drilling of 74 new wells and sidetracks, of which two were exploration wells. Total Downstream investments amounted to RON 201 million (EUR 43 million) in the third quarter and were directed to Downstream Oil, mainly for the Polyfuel growth project and the Arad fuel storage revamp.

OMV Petrom is controlled by Austrian group OMV, which holds 51% of the company’s shares. The Romanian state holds a 20% stake and Fondul Proprietatea also owns a significant minority stake.

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Irina Marica, irina.marica@romania-insider.com