Romania’s Petrom 1Q Net Profit Down 48% YY, At RON506M

Romania’s largest oil company Petrom (SNP.RO) posted a net profit of 506 million lei (EUR1=RON4.1281) in the first quarter, down 48% compared with RON977 million in the same period a year before, the company said Friday.

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Romania’s Petrom 1Q Net Profit Down 48% YY, At RON506M

Petrom, owned by Austria’s OMV (OMV.VI), reported a RON3.04 billion net turnover in the first three months of the year, 18% lower than RON3.72 billion in the similar period of 2008.

“The results reflect lower oil price environment: EBIT (Earnings Before Interest and Taxes – e.n.) down 83% year-on-year to RON180 million, while net profit was boosted by the positive hedging and FX results, decreasing only 48% year-on-year,” the company said in a statement.

Petrom’s Earnings Before Interest and Taxes Depreciation and Amortization, or EBITDA, were also down 56%, at RON562 million in the first quarter.

The company’s investments in the analyzed period fell 43% on the year to RON1.17 billion.

“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% compared with RON1.02 billion in 2008, despite a 17% lower gross profit at RON1.32 billion.

Petrom's majority shareholder is Austria's OMV (OMV.VI) with a 51% stake, while Romania's Economy Ministry holds a 20.6% stake, and Proprietatea Fund owns 20.1% of the company's shares.

On the Bucharest bourse Thursday, Petrom shares rose 10% on the day, at RON0.2.
 

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