Petrom sees profit rebound in third quarter

Petrom, the biggest local company, posted 615 million RON (145.5 million euros) in net profit in the third quarter of the year, down 2% compared with the same time of last year, but 47.5% higher than the profit posted in the second quarter of 2009.

Actually, Petrom posted increases on all its lines of business in the third quarter of the year compared with the second quarter. "The contraction of the Romanian economy is estimated to alleviate in the last quarter of 2009. Still, the increase in the unemployment rate will cause social and political tension. Such effects will go away once the economy rebounds, which will probably happen in the second half of 2010. Additional funds of 3.5 billion euros are needed to cover the budget deficit until the end of 2009. Any delay in the allocation of the next instalment of the IMF loan could lead to an increase in Romania's sovereign risk, and at the same time put more pressure on the exchange rate," Petrom officials say.

Petrom's business stood at 3.53 billion RON (835.3 million) in the third quarter of 2009, 25% lower than in the same time of last year, but 22% higher than in the second quarter of 2009.

The nine-month profit of the petroleum and gas company controlled by Austrian group OMV stood at 1.53 billion RON (363.8 million euros), down 33% compared with the same time of last year, while turnover reached 9.45 billion RON (2.2 billion euros), 27% lower.

Though the third quarter results were higher than the second quarter figures, they were lower compared with the corresponding period of last year.

"Despite the unfavourable economic conditions, we posted good results in the third quarter. However, our cumulated results for the first nine months were hit by the low oil price, by difficult economic conditions and by the deterioration of margins, amid the decline of the industrial and trade sectors," says Mariana Gheorghe, Petrom's chief executive officer.