Petrom’s profit hits record high – over 1 billion euro in 2013

OMV Petrom recorded last year the biggest profit in history, the net figures rising to 4.82 billion lei (a little bit above 1 billion euro), an advance of 22 percent compared to the previous year, as showed by the group’s preliminary financial statement.

“In 2013, Romania has registered an economic growth higher than expected, however consumption remained weak, while the fiscal burden increased further. In spite of a lower demand in the gas and power sectors, a reduction in refining margins and electricity prices, Petrom recorded another strong financial performance due to operational and strict cost control initiatives, as well as favorable crude oil price environment”, Mariana Gheorghe, CEO Petrom, said.

Despite the impressive financial results, the oil and gas producer’s revenue fell by 8 percent over 2012, totaling some 24.19 billion lei. The decline in sales is mainly due to lower crude oil and petroleum products sales which more than offset higher sales of electricity. Also, a decrease has been seen in the profit generated by the gas and power segment, where there has been registered a weak demand and depressed electricity prices.

As for the operations segment, OMV Petrom group maintained the overall production of oil, gas and NGL at a level similar to that in 2012 – about 66.7 million boe (Barrel of Oil Equivalent). In Romania, which is the main production source of oil, gas and NGL, accounting for 62.5 million boe of the total volume, the operations field improved, although it is about a marginally advance of 0.26 percent compared to the previous year.

‘On the operating side, we successfully increased our hydrocarbon production in Romania, offsetting the natural decline, and engaged in partnerships to unlock the onshore potential. In the Black Sea, we further pursued our exploration activities by completing the 3D seismic acquisition and prepared to resume the exploration campaign in mid-2014. Since privatization, we have secured the growth of our company and the future of the hydrocarbon production by reinvesting approximately 85 percent of our operating profits, to a cumulative level of EUR 10 billion.’, Gheorghe also stated. 

For the current year, Petrom announces that the modernization works at the Petrobrazi refinery will be completed and confirms its focus on the electricity and power segment where will concentrate on further stabilizing production and on progressing exploration initiatives onshore and in the Black Sea. With respect to the latter, in late-January 2014, the group, alongside ExxonMobil officially got the licence for exploration in the deepwater area in the Black Sea’s Midia XV perimeter. As Govnet then informed, Exxon Mobile and OMV Petrom have each a 42.5 percent stake in the Midia XV project, the remaining share being held by Gas Plus.