OMV Petrom posted a net profit of 618 million lei, after the first three months of the year, which is more than double of that in the first quarter of last year, of 288 million lei, according to a press release of the Group for energynomics.ro.
“In 2017 T1, we have managed to capitalize on better market conditions by strong operational and financial performance. We recorded a substantially improved cash flow from operational activities of 1.3 billion lei, which, combined with the reduction of investments, led to an extended cash flow of 646 million lei”, said OMV Petrom officials.
“Compared with T1 in 2016, sales increased by 27%, supported by significantly higher crude oil prices and higher gas and electricity sales volumes, which have counterbalanced the slight reduction in the quantities of oil products sold and the fall in prices for natural gas. The Downstream Oil sales accounted for 69% of total consolidated sales, while Downstream Gas sales accounted for 28% and Upstream sales 2% (upstream sales being, largely, sales within the Group, not to third parties)”, explained the representatives of the OMV Group.
According to the release to energynomics.ro, “the net profit increased by 114% compared to the first quarter of last year, amid a 27% increase in sales up to 4,6 billion lei. Sales were supported by significantly higher crude oil prices and higher gas and electricity sales volumes, which counterbalanced the small reduction in oil sales and lower gas prices”.
The operating result of the Petrom Group for T1 in 2017 increased to 798 million lei, compared to 346 million lei in T1 2016, mainly due to higher revenues from sales and the elimination of special construction tax starting with the year 2017, it is shown in the release.
The exploration and production segment, most important in Petrom’s strategy, posted a net operating result of 471 million lei, from losses of 80 million lei in the first quarter of 2016.
On the downstream segment, the company reported an operating result of 322 million lei, down 10% from the one recorded in the first quarter of 2016.
“The operating result in T1 of 2017 was also supported by fiscal relaxation measures in Romania, in particular the elimination of the special construction tax, starting with January 2017”, said Mariana Gheorghe, CEO, OMV Petrom.
The Austrian group OMV is the majority shareholder of Petrom with a 51.01% stake, while the Ministry of Economy holds a package of 20,64% of the shares and Fondul Proprietatea 20,11%.