Petrom, the largest Romanian company, controlled by Austrian petroleum group OMV, posted net profit worth 247 million euros in the first quarter, over three times higher than in the same time last year. Turnover stood at 877 million euros, up 50%. Petrom''s profit last year amounted to 391 million euros.
Petrom improved its profitability thanks to the higher petroleum prices, with the profit made from its production business offsetting the losses in the refining and distribution fields.
The other company on the Bucharest Stock Exchange, Rompetrol Rafinare posted 19 million-euro losses for the first three months, compared with a profit of 40 million euros in the same time last year. Petrom was saved by its production business, something that Rompetrol does not have.
"The good results in the first three months are in accordance with the company''s development; we are now progressing in full swing, making substantial investments and taking all the necessary steps to turn Petrom in to a company that meets European standards. We are focusing on our core operations, continuing to improve the company''s efficiency, and have taken a major step towards our goals of expansion on the SE Europe market with our acquisition of OMV''s distribution networks in Romania, Bulgaria, Serbia and Montenegro," stated Gheorghe Constantinescu, Petrom''s chief executive.
The announcement of the results on the Bucharest Stock Exchange yesterday morning led to a surge in the price of Petrom''s shares by 5%, yet later sales of shares pushed the price down. Petrom closed at 0.525 RON, only 0.96% higher than at the previous close.
The company''s market capitalisation amounts to 8.43 billion euros. OMV owns 51% in Petrom, while the state retains 40%.
Earnings before taxes and interests (EBIT) reached 296 million euros, double compared with the level in the first three months of last year. The favourable trend was the result of the high price on the international markets and to the larger sales of petroleum and fuels on the domestic market. Therefore Petrom''s EBIT from the Exploration and Production business went up by more than three times, to 368 million euros.
Although the total production witnessed a slight decline, 4.2% compared with the first three months of last year, the price of petroleum on the foreign markets somewhat offset this production recoil. International quotes in the first three months were in the region of 61.78 dollars/barrel, 14.16 dollars higher than in the corresponding period of 2005. The domestic price of petroleum rose to 53.48 dollars/barrel, 37% more compared with the first quarter of last year.
The gas business was separated from the Exploration and Production business of the company in 2005. This will lead to the division posting lower results in the future, the report filed by the OMV with the Vienna Stock Exchange shows.
Petrom''s Refining and Marketing division posted a negative EBIT worth 82.3 million euros, compared with the 24.16 million euros for the same time in 2005.
roxana.petrescu@zf.ro
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