Romanian oil and gas group OMV Petrom (BVB: SNP) reported a 43% drop in sales and 64% drop in the net income in the third quarter (Q3) of 2023 compared with the same period of last year. The Clean CCS net income, which is adjusted for Special Items and Current Cost of Supply effects, was also down 44% year-on-year, at RON 2.06 bln (EUR 416 mln).

In the first nine months, the group’s sales declined by 36% compared with the same period of 2022 while the Clean CCS net income was down by 36%, at RON 5.4 bln, and the net income was 72% lower year-on-year, at RON 2.55 bln.

However, this was largely expected after OMV Petrom’s extraordinary profits in 2022, a year marked by high energy prices and a favorable market environment.

Among the factors that contributed to the lower results in Q3 and the first nine months of 2023 were lower oil and gas prices and production volumes, unfavorable foreign exchange (FX) evolution, lower margins in the retail segment.

OMV Petrom’s shares were trading 1.3% lower on Tuesday, October 31, after the group released its financial report. However, the SNP shares have brought investors a 29% positive return since the beginning of this year.

editor@romania-insider.com

(Photo source: the company)