OMV Petrom posts 618 ml lei in Q1 2017 net income, twofold rise YoY. “Our Q1 2017 operating result was also supported by fiscal easing in Romania”, says Mariana Gheorghe OMV Petrom CEO

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Oil and gas group OMV Petrom posted a net income of 618 million lei in Q1 2017, more than twofold (114 pct) the 288 million lei reported in the similar period of 2016, as shows the consolidated financial statement released on Thursday.

The net income attributable to stockholders is 619 million lei, as to 291 million lei in Q1 2016, and the clean CCS net income attributable to stockholders (after deducting the net result attributable to non-controlling interests) advanced to 586 million lei from 330 million lei (plus 77 pct). EPS was 0.0109 lei in Q1 2017 as to 0.0051 lei in Q1 2016.

OMV Petrom consolidated sales in Q1 2017 amounted to 4.653 billion lei, up 27 percent from Q1 2016, mainly due to significantly higher sales of natural gas and electricity that offset the slight decrease in the volumes of petroleum product sales and the decrease in natural gas prices.

Group investments decreased by 54 pct to 353 million lei, mainly under the effect of the cut of investments in the Neptun Deep block and the completion of some field redevelopment projects in 2016.

“In Q1 2017, we were able to convert improved market fundamentals into a solid operational and financial performance. We recorded a substantially improved operating cash flow of 1.3 bn lei, which together with CAPEX reduction led to a free cash flow of 646 million lei. Increased oil prices and higher retail demand for fuels, coupled with our continued cost discipline, were reflected in a Clean CCS Operating Result of 767 million lei, almost half of the entire 2016 figure. In Upstream, we further reduced production costs, while production decline was in line with our 2017 guidance, helped by the contribution from the Lebada Est NAG project. The Downstream Clean CCS operating result increased by 3 percent YoY, due to improved overall performance, strict cost management, supported by strong refining margins. Our Q1 2017 operating result was also supported by fiscal easing in Romania, in particular the elimination of the tax on special constructions starting January 2017,” declared Mariana Gheorghe, OMV Petrom CEO.