October 29 (SeeNews) - Romania's top oil and gas group, OMV Petrom [BSE:SNP], said on Friday its net profit doubled year-on-year to 1.676 billion lei ($392 million/339 million euro) in the first nine months of 2021.
The good performance was driven mainly by the favorable market environment, as demand for products returned to pre-Covid levels, blue-chip OMV Petrom said in its third-quarter unaudited consolidated financial statement filed with the Bucharest Stock Exchange, BVB.
"The global outbreak of the COVID-19 pandemic continues to have a major impact on global economic development. While oil prices continued to trade at elevated levels during the third quarter, natural gas prices strongly increased at the end of the quarter following supply reductions and low gas storage volumes ahead of the winter season," the oil and gas group said.
Sales rose 13% year-on-year to 17 billion lei in the nine months through September, mainly supported by higher sales of petroleum products in terms of both prices and volumes, partially offset by lower sales volumes of natural gas and electricity.
OMV expects 2021 capital expenditures (CAPEX) excluding acquisitions to be around 2.9 billion lei, compared to 3 billion lei in the previous year.
According to the oil and gas group, offshore law amendment by year end is critical for the Neptun Deep gas to be extracted.
"In the context of a steep natural decline in the domestic gas production, we see Black Sea gas as the solution for securing Romania’s energy independence," OMV noted.
In the upstream segment, OMV Petrom posted a 1.072 billion lei operating profit, compared to a 1,085 billon lei operating loss in the same period of 2020.
Total hydrocarbon production shrank by an annual 10% to 131.8 million barrels of oil equivalent (boe) in the nine months through September, due to lower production in Romania and the divestment of Kazakhstan production assets in the second quarter.
Exploration expenditures fell by an annual 15% to 99 million lei in the first nine months of 2021.
In the downstream segment, the group's operating result fell 21% on the year to 1.438 billion lei in the January-September period.
Total sales of refined petroleum products fell 6% year-on-year to 3.93 million tonnes in the nine months through September. Gas sales volumes fell by an annual 16% to 36.64 TWh while net electricity output jumped by an annual 9% to 3.24 TWh.
In the third quarter alone, OMV Petrom's booked a net profit of 696 million lei, compared to a 41 million lei net loss in the same period of 2020. Sales in the third quarter of 2021 rose 37% on the year to 6.92 billion lei.
Austria's OMV Aktiengesellschaft holds a 51.011% stake in OMV Petrom. The Romanian economy ministry owns 20.639% and 28.35% is free float on the Bucharest bourse and the London Stock Exchange.
Shares in blue-chip OMV Petrom traded 0.70% lower at 0.4950 lei by 0943 CET on the BVB on Friday.
(1 euro=4.9490 lei)
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