Petrom reports record losses in last quarter: 340m euros

Petrom Bucuresti (SNP), the largest company in Romania, reported a net profit worth 1.022 billion RON (278 million euros) in 2008, the lowest in the last four years, after the company set up provisions worth over 1.3 million RON (350 million euros) for employee litigations, as well as other provisions and adjustments for restructuring and stock depreciation. The petroleum company, part of Austrian group OMV, reported 1.269 billion-RON (over 340 million-euro) losses in the fourth quarter partly due to the significant decline in the price of oil, which erased a large part of the record-high profit worth 2.29 billion RON (622 million euros) accumulated in the first nine months of 2008. The company also announced it would not disburse dividends from the 2008 profit, which would instead be reinvested, and that it could do the same with the 2009 profit. "We recorded an operating loss for the first time since privatisation. This is a major blow for the company, and 2009 is heralded to be a year of big challenges for Romania and for Petrom (...). stated Mariana Gheorghe, Petrom CEO.