Romania: A net profit drop at MV Petrom in 2020

, SEE Energy News

OMV Petrom recorded a net profit in the amount of 265 million euros in 2020, which is by 64 % less compared to last year. It is the largest Romanian oil and gas company and is a part of Austrian OMV Group.

Consolidated sales in the amount of 4.04 billion euros in 2020 decreased by 23 % compared to 2019, following negative evolution of the commodity prices and lower sales volumes for petroleum products and electricity. Downstream Oil represented 69 % of total consolidated sales, Downstream Gas accounted for 29 %, and Upstream for 2 %. Clean CCS Operating Result amounted to 470 million euros, 50 % below the figure for 2019, mainly due to lower commodity prices. The negative evolution in Upstream, triggered by lower crude oil and gas prices, was partly compensated by higher positive contribution from Downstream, mainly deriving from the power business and gains from middle distillate margin hedges. Reported Operating Result for 2020 decreased to 301 million euros, compared to 870.5 million euros in 2019 driven mainly by the unfavorable market environment, as the lower prices and the coronavirus crisis had a negative impact on group’s performance, and by the net impairments triggered by the revision of price assumptions.

Capital expenditure amounted to 657.5 million euros in 2020, 24 % lower than in 2019, mainly directed to Upstream investments of 488.5 million euros (2019: 670 million euros). Downstream investments amounted to 165 million euros (2019: 185 million euros), of which 162.5 million euros in Downstream Oil (2019: 168 million euros). Total sales of refined petroleum products fell 9 % year-on-year to 4.99 million tons in 2020. Retail sales volumes were down by 8 % following reduced traffic during the coronavirus pandemic. Non-retail sales decreased by 9 %, as a result of weaker demand in the context of the pandemic and a steep drop in the aviation business. Gas sales volumes rose by an annual 4 % to 57 TWh, while net electricity output jumped by an annual 23 % to 4.7 TWh. In the fourth quarter alone, OMV Petrom’s net profit fell by an annual 47 % to 95.5 million euros. Sales in the fourth quarter of 2020 fell by 37 % on the year to 942.5 million euros.