Romanian Petrom 1H Net Pft At RON923M, Dn 45% On Yr

In the second quarter, Petrom's net profit was at RON417 million, 39% lower than in the same period a year ago.

"The second quarter results reflect the lower oil prices and sales in commercial fuels and gas; net profit was supported by the positive hedging and FX results, with our hedging strategy extended to 2010," the company said in a statement.

Petrom, owned by Austria's OMV (OMV.VI), reported a net turnover of RON5.9 billion in the first year-half, down 28% on the year, mainly due to lower price levels. The turnover fell 37% in the second quarter compared with the same period of 2008, to RON2.9 billion, mainly driven by the decrease in fuel selling price but also due to a decrease in sold quantities, Petrom said.

Operating costs also dropped in the January to June period, but by a lower pace. Operating expenses fell 16% on the year, to RON5.57 billion, mainly due to a decrease in raw material costs caused by lower quantities of imported crude oil, as well as the reduction in the provisions for risks and charges.

In the January-June period, Earnings Before Interest and Taxes, or EBIT, amounted to RON455 million, 76% below the RON1.87 billion result in the same period a year earlier, mainly due the unfavorable crude price environment, higher depreciation and lower sales of gas and commercial fuels, according to Petrom.

Petrom’s Earnings Before Interest and Taxes Depreciation and Amortization, or EBITDA, were also down 52%, at RON1.24 billion in the first semester.

Petrom had 29,103 employees at the end of June, compared with 33,311 at the end of 2008.

On the Bucharest bourse Tuesday, Petrom shares closed down 1.92% on the day, at RON0.256.

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