Romanian OMV Petrom estimates lower net profit in 2020

, SEE Energy News

OMV Petrom, a part o Austrian OMV Group as the largest Romanian oil and gas company estimates 2020 net profit to reach some 580 million euros, which is 21 % lower compared to the previous year. Price is now halved – the 2020 budget was initially based on 60 dollars/barrel crude oil price.

From The company believed that the surplus of production together with the increased uncertainty in the world economic environment, generated by the spread of coronavirus, will generate a high volatility of the market environment in the coming months.
In Romania, daily hydrocarbon production is estimated at 138.3 thousand barrels of oil equivalent per day, which is by 4.7 % less compared to 2019. This decrease mainly reflects the natural decline and the sale of deposits. This is due to a slight increase of 1 % in oil production and a 9 % decrease in gas production.
Natural gas sales will decrease by 6 % compared to 2019, as a result of the reduction of own production and the estimation of diminution of the portfolio of final customers, decrease generated by the need to fulfill the legal obligations (obligations to trade natural gas on centralized markets and to deliver natural gas to the regulated market).
The net energy production is estimated to decrease by 10 % compared to 2019, as a result of the decrease in the obligation to supply electricity on the regulated market.

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