Romanian oil and gas company OMV Petrom reported a 1.399 billion lei (281.2 million euro) net profit for the first quarter of 2024, which is 6% lower compared to the same period of last year.
In the same period, sales revenues fell by 10% to 8.544 billion lei, according to company’s unaudited consolidated financial statement.
The decrease in sales revenue was caused by lower prices for natural gas and electricity and lower sales volumes of natural gas, while higher sales volumes of electricity and refined products partially offset the drop. OMV Petrom’s Refining and Marketing segment contributed 72% of total consolidated sales, while sales from the Gas and Power and Exploration and Production segments accounted for 28% and 0.2%, respectively.
Capital expenditures increased by 1% to 972 million lei in the review period, of which 772 million lei were directed to Exploration and Production, 154 million lei to Refining and Marketing, and 22 million lei to Gas and Power. Other investments, including those directed to the corporate division, amounted to 23 million lei.
The Exploration and Production segment recorded a 728 million lei clean operating result in the first quarter, down 26% on the year, due to lower gas prices, decreased hydrocarbon sales volumes, and higher depreciation.
Total hydrocarbon production fell 3% to 10.16 million barrels of oil equivalent (boe) during the reporting period, reflecting the natural decline in the main fields. The fall was partially offset by the contribution of workovers and new wells.
Exploration expenditures plunged by 67% on the year to 17 million lei in the first three months of 2024, mainly reflecting lower exploration drilling activities.
In the Refining and Marketing segment, the group’s clean current cost of supplies (CCS) operating result in the first quarter of 2024 amounted to 484 million lei, declining by 21% year-on-year, mainly due to lower refining and marketing margins as well as additional tax on revenues.
Total sales of refined products rose by 4% on the year to 1.29 million tonnes in the first quarter.
The Gas and Power segment recorded a clean operating result of 433 million lei, down by an annual 40%, as the strong gas storage margins recorded in the prior-year period did not materialize in the first trimester of 2024, as per the statement. Gas sales volumes decreased by 4% year-on-year to 12.57 TWh while net electricity output jumped by 65% to 1.60 TWh.
