OMV Petrom ready to intensify investment in h2
According to the financial data recently published by OMV Petrom, the group registered a net profit of RON 1.2 billion in the first semester of the year, which is 199 percent higher than the one from the similar period of 2016, due to the sales growth by 25 percent and the investments reduction. The sales increased in the first semester of the year by 25 percent to RON 9.26 billion, due to the crude oil prices significantly higher and the higher volumes of oil products, natural gas and electricity, partially compensated by the average sales prices lower on natural gas.
“In the first six months of 2017, we converted favorable market conditions into solid operational and financial performance. We were supported by increased oil prices, solid refinery margins and a higher demand for all our products. In addition, we continued our strong cost discipline. As a result, our 6m/17 Clean CCS Operating Result reached RON 1.66bn with both Upstream and Downstream showing significant increases. In Upstream, further reduced production cost per barrel fully offset the production decline. Downstream Clean CCS Operating Result increased by 70% yoy on better contributions from both Oil and Gas. Operating cash flow of RON 3bn, up 68% yoy combined with CAPEX reduction and RON 0.8bn dividend payment, led to a free cash flow after dividends of RON 1bn,” Mariana Gheorghe, CEO of OMV Petrom, stated.
The investments dropped by 32 percent in the first semester to RON 913 million compared with the first semester of 2016, mainly due to the substantial reduction of investments in Upstream segment. For 2017, the company initially estimated investments close to EUR 800 million, by 40% higher compared with 2016, but revised the budget downwards. “We revised the investments estimations downwards to EUR 0.7 billion from 0.8 billion due to the drills portfolio optimization, costs savings and projects revision; however, we are ready for an investments activity intensification in the second half of the year,” Mariana Gheorghe also mentioned.
