The largest oil and gas company in the region, Petrom (OMV group) boosted its net profit by 111% y/y to RON1.85bn (EUR406.48m) in Jan-Sep, the company announced in a release on the local stock exchange. The profitability improvement was mainly triggered by the favorable developments of the crude prices on the international markets, which pushed up the upstream segment profit four times on the year. Hence, the operational result in the upstream segment recorded a historical high of about RON1.2bn.
The demand kept on improving in Q3, pushing up sales, while the strict cost control contributed to the improved performance in the period. Therefore, the company could afford to make progress in its investment projects that should cushion the production decline in the future. Petrom estimates to reach EUR 0.7bn investments this year. The sales also rose in the oil and gas downstream segment, mainly in oil, so the operation result was up by 23.0% y/y in the period.
Petrom is Romania’s second largest company, after car manufacturer Dacia. OMV holds a 51% stake in the company and the state has nearly 21%. Petrom also operates a gas-fired thermo-power plant and has the biggest gas station network in Romania. It has important oil and gas exploration and exploitation projects in the Black Sea in cooperation with ExxonMobil. The company’s profitability and investment plan have significantly deteriorated in the previous years due to unfavorable developments of the crude price on the international markets. However, Petrom managed to return to profit last year, when it made RON1.04bn net profit, even if its sales dropped by 10.0% y/y to about RON16.3bn, as the oil prices started to recover.