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March 20, 2023

Brazi plant could hike OMV Petrom profit by EUR 100 M

According to the Jefferies & Co investment bank’s analysts, OMV Petrom’s EBIT profit could grow by up to EUR 100 M after the natural gas-burning power plant in Brazi becomes operational, Mediafax informs quoting Bloomberg. Petrom plans to create a portfolio of electricity production assets that would include the 860-MW power plant in Brazi and a wind farm in Dobrogea. The two units will be connected to the national electricity grid this year. The company plans to reach a share of 10 per cent on Romania’s electricity market. “The project should generate fairly high revenues since it represents an efficient solution to balance the difference between liberalized electricity prices and administered natural gas prices that the government maintains at an artificially low level,” the analysts pointed out. In 2010 OMV Petrom invested a total of RON 1.1 bln in the two energy production projects. Last year the group’s EBIT profit stood at RON 2.98 bln, 84 per cent higher than the RON 1.62 reported in 2009.

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