The net profit of Romanian oil and gas company OMV Petrom plunged by 43% in the first quarter of the year (Q1) compared to the same period last year, to RON 653 million (some EUR 135 mln).

The company's revenues increased by 12% to RON 6 billion (EUR 1.24 bln) in the quarter.

However, the operating income decreased by 36% to RON 830 mln (EUR 171 mln), mainly due to the unfavorable market environment, lower prices, and crisis generated by COVID-19.

In the first quarter of this year, OMV Petrom's total fuel sales stood at 1.2 million tonnes, up 1% compared to the previous year, mainly due to the elimination of the extra excise duty and warmer weather.

However, in the last half of March, after the beginning of the COVID-19 pandemic in Romania and the gradual introduction of movement restrictions, fuel sales in gas stations dropped by about 30%, according to company representatives.

In this context, OMV Petrom expects the demand for oil products, gas, and power to be significantly lower this year than in 2019.

"We estimate a 45% drop in fuel sales in the second quarter of the year. For the full year, the drop will be 20%," Christina Verchere, CEO of OMV Petrom, said in an online conference, quoted by Economica.net.

The company has also been hit by the drop in oil prices, which has forced it to lower the retail fuel price. However, the company expects higher refining margins this year compared to 2019.

(Photo: Pixabay)

editor@romania-insider.com