Romanian OMV Petrom Switches To RON779M Profit In Q4/2010

In the last quarter of 2009, Petrom, the Romanian arm of Austria's OMV (OMV.VI), reported a net loss of RON131 million.

The results "were supported by the favorable oil price environment and higher sales. The Urals crude price, the reference oil price for Romania, was 15% higher in Q4/10 compared to the level recorded in Q4/09," Petrom said in its preliminary financial report.

Fourth quarter earnings before interest and tax, or EBIT, was RON974 million, five times higher on the year. Clean EBIT, adjusted for special one-time items, stood at RON811 million, down from RON844 in the last quarter of 2009.

"Despite the favorable crude price environment, clean EBIT was lower by 4% compared to Q4/09, due to the negative impact from hedging, lower sales volumes and higher costs associated with the ramp-up of production in Kazakhstan," the company said.

Petrom reported consolidated sales of RON5.4 billion in the fourth quarter, up 29% on the year. The results are exclusive of excise duties on oil products.

For the whole of 2010, Petrom posted a net profit of RON2.19 billion, well above RON833 million reported a year earlier. The results were supported by good oil prices and improved efficiency in the research and marketing segment.

"Within a favorable crude price environment, 2010 marked the achievement of a series of strategic projects and strong improvements in our operational performance," said Mariana Gheorghe, Chief Executive Officer of OMV Petrom.

The company's EBIT stood at RON2.98 billion in 2010, up 84% from RON1.62 billion in the previous year.

Petrom said consolidated sales rose 16% on the year to RON18.6 billion in 2010.

The group's oil and gas production reached 184,000 barrels of oil equipment a day, down 2% from 187,000 boe a day in 2009.

Petrom's results are consolidated, unaudited and calculated according to IFRS.

On the Bucharest market Tuesday, Petrom closed up 1.11% at RON0.365 a share.

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