Romania’s largest oil company Petrom posted a net profit of RON 506 M in Q1, down 48 per cent compared to RON 977 M in the period a year before, the company said Friday in a statement. Petrom, owned by Austria’s OMV, reported a RON 3.04 billion net turnover in the first three months of the year, 18 per cent lower than RON 3.72 billion in the similar period of 2008.
Petrom’s Earnings before interest and taxes depreciation and amortization, or EBITDA, were also down 56 per cent, at RON 562 M in the first quarter. The company’s investments in the analyzed period fell 43 per cent on the year to RON1.17 bln.
“We will continue to pursue our sizeable investment program, although at a slower pace compared to 2008, in order to achieve the company’s long-term development objectives,” Petrom’s chief executive Mariana Gheorghe said in the statement.
The restructuring and modernization program continues, backed by tight cost control and access to financing that underpins a still considerable investment budget, the company also said. Petrom had 31,685 employees at the end of March, compared with 33,311 at the end of 2008. For the whole of 2009, Petrom estimates its net profit will rise to RON1.11 billion, up 8.6 per cent compared with RON1.02 billion in 2008, despite a 17per cent lower gross profit at RON 1.32 billion. On the Bucharest bourse Thursday, Petrom shares rose 10% on the day, at RON 0.2.
On the other hand, OMV’s earnings before interest and tax (EBIT) fell 54 percent to 340 million euros (USD 452.9 M) after stripping out one-off items in the three months to March. Its net loss after minorities was EUR 40 M.
EUR 400 M for power plant
Romania’s top oil and gas group Petrom said on Friday it had borrowed EUR 400 M (USD 536 M) from international financial institutions to build a power plant.
Petrom got EUR 200 M from the European Investment Bank (EIB) and another EUR 200 M from the European Bank for Reconstruction and Development (EBRD). Both loans have a 12 year maturity. The total value of the investment stands at EUR 500 M. The power plant, which Petrom plans to build by 2012 in the southern town of Brazi, will have an 860 mega-watt capacity. Around 20 percent of its capacity will be used solely by Petrom.