Romania, Amendment making OMV Petrom subject to solidarity tax adopted

, SEE Energy News

The Romanian Chamber of Deputies passed the law approving Emergency Ordinance 186/2022 on the solidarity contribution, with an amendment that may result in covering oil and gas company OMV Petrom, which was previously estimated not to fall under the provisions because more than 25 % of its revenues are not subject to solidarity contribution.

Particularly, the revenues generated from the activity of motor fuel distribution are, under the revised Emergency Ordinance, subject to the solidarity contribution, while this activity was excluded under the form drafted by the Government.

OMV Petrom argues that the amendment breaches the Constitution due to retroactivity.

The solidarity tax is calculated as 60 % of the profit realized by the upstream and refining companies in 2022 and 2023, above 120 % of the average profit reported in the previous four years.

OMV Petrom, a subsidiary of Austrian OMV Group, recorded a net profit in the amount of 2.1 billion euros in 2022, compared to a profit of 580 million euros in the previous year. Consolidated sales revenues amounted to 12.4 billion euros in 2022, an increase of 136 % compared to 2021, mainly supported by higher commodity prices and higher sales volumes of petroleum products and electricity, partly offset by lower gas sales volumes.

Sign up for updates & special reports

error: Content is protected !!