OMV Petrom (SNP), the largest Romanian energy company, recorded declining operating results across the board in the third quarter of this year (Q3) compared to the same period of 2019, except for the electricity production segment.

Furthermore, the operations in G3 lost momentum even compared to Q2, in some areas.

The company's hydrocarbon production fell to 141,300 barrels of oil equivalent (boe) per day in Q3, from 147,300 Q2, 2020, and 150,000 in Q3, 3019, according to data quoted by Economica.net. Both crude oil (condensate included) and natural gas production decreased.

In year-on-year terms, OMV Petrom's gas extraction decreased by more than 8%. Oil and gas sales also fell to 133,300 boe per day in Q3, from 142,100 in Q2 and 142,200 in Q3, 2019.

The company faced a difficult market environment, given that the average oil price was only USD 36 per barrel in Q3, still better than in the previous quarter (USD 24.45), but well below Q3 2019 (USD 54).

The utilization rate of the Petrobrazi refinery, the only one operated by the company, fell to 86%, the lowest level in the last five quarters.

However, the company sold more fuel (1.38 million tonnes) than in the previous quarter (1.15 million), a situation that can generally be explained for the retail market by the fact that the third quarter includes the holiday season, and second-quarter sales were impacted by restrictions caused by the pandemic.

However, fuel sales were 7% below those of a year ago: 1.49 mln tonnes. On the upside, the production of electricity increased.

The combined cycle gas plant in Brazi produced 1.31 TWh of electricity in Q3, more than double compared to the previous quarter and significantly more than a year ago (1 TWh in the third quarter of 2019). OMV

Petrom will release its Q3 financial results on October 29.

(Photo: OMV Petrom on Flickr)

andrei@romania-insider.com