OMV Petrom triples net profit in first half of 2024
OMV Petrom, the most important producer of hydrocarbons and fuels in Romania, as well as a producer of electricity, registered a net profit of RON 2.628 billion (EUR 528 million) in the first half of 2024, almost triple compared to RON 944 million (EUR 189.7 million) in the same period last year.
The eponymous Austrian group owns OMV Petrom. The Romanian state holds nearly 20.7% of the shares.
The tripled profit is because the state-imposed solidarity contribution owed by OMV Petrom for the refined oil last year, although it was paid in June 2024, was budgeted in the 2023 expense statement. Now, the tax only appears under "Other adjustments,” at RON 1.031 billion. Plainly put, in the H1 2024 report, the column for fiscal expenses shows zero for the solidarity contribution, compared to RON 1.982 billion in the first 6 months of 2023.
"The solidarity contribution on refined oil was due for oil processed in 2022 and 2023, therefore it is no longer applicable in 2024. In 2023, the solidarity contribution on refined oil, amounting to RON 2.729 billion, was recognized in the Consolidated Statement of Income and Expenses for quantities of oil processed in 2022 (RON 1.485 billion) and 2023 (RON 1.244 billion). The solidarity contribution on refined oil for 2023 was paid in June 2024 and is included in the Simplified Interim Consolidated Cash Flow Statement," explains OMV Petrom, cited by Profit.ro.
The company's total sales revenues decreased by 3% in the first 6 months of 2024, negatively influenced by lower prices and volumes associated with natural gas sales and lower electricity prices, partially offset by higher sales of petroleum products and higher volumes of electricity sold.
“During this period, we contributed about RON 8 billion to the Romanian state budget, including dividends, and invested approximately RON 2.4 billion," said OMV Petrom CEO Cristina Verchere.
On the other hand, the company's operating result excluding special items decreased by 15%, from RON 3.709 billion to RON 3.147 billion.
OMV Petrom's refining margin decreased by 2.9 dollars/barrel, to about 11.1 dollars/barrel, mainly due to reduced differentials for diesel and gasoline and higher oil prices.
The refinery utilization rate increased to 95%, from 64% in H1 2023, thanks to a low base last year, reflecting the planned refinery shutdown in Q2 2023.
Total sales of refined products were 14% higher compared to the first 6 months of 2023, with retail sales increasing by 6%, supported by increased demand, and wholesale sales – by 26%, reflecting lower product availability during the reference period due to the refinery overhaul.
Net electricity production at the Brazi plant more than doubled, increasing from 0.97 to 2.13 TWh, a record level for the first half of the year since operations began. The plant's production covered 8% of Romania's electricity generation mix, OMV Petrom specified.
(Photo source: Mihai Olaru | Dreamstime.com)
