OMV Petrom doubles profit in Q1 2017
OMV Petrom posted a net profit of RON 619 million (EUR 136 million) in the first quarter of this year, up 113% compared to the same period of 2016. The group’s sales went up by 27%, to RON 4.65 billion (EUR 1.02 billion), boosted by higher international oil prices and higher local demand for fuel.
“In Q1/17, we were able to convert improved market fundamentals into a solid operational and financial performance. We recorded a substantially improved operating cash flow of RON 1.3 bn, which together with CAPEX reduction led to a free cash flow of RON 646 mn. Increased oil prices and higher retail demand for fuels, coupled with our continued cost discipline, were reflected in a Clean CCS Operating Result of RON 767 mn, almost half of the entire 2016 figure. In Upstream, we further reduced production costs, while production decline was in line with our 2017 guidance, helped by the contribution from the Lebada Est NAG project. The Downstream Clean CCS Operating Result increased by 3% yoy, due to improved overall performance, strict cost management, and supported by strong refining margins. Our Q1/17 Operating Result was also supported by fiscal easing in Romania, in particular the elimination of the tax on special constructions starting January 2017,” CEO of OMV Petrom Mariana Gheorghe stated. “Overall, our strong Q1/17 performance shows delivery in terms of operational excellence in all business segments, in line with our strategic objectives to enhance competitiveness in the existing portfolio,” she added.