OMV Petrom, the biggest oil&gas company in Romania, posted a net profit of RON 619 million (EUR 136 million) in the first quarter of this year, up 113% compared to the same period of 2016. The group’s sales went up by 27%, to RON 4.65 billion (EUR 1.02 billion), boosted by higher international oil prices and higher local demand for fuel.

“Increased oil prices and higher retail demand for fuels, coupled with our continued cost discipline, were reflected in a Clean CCS Operating Result of RON 767 million, almost half of the entire 2016 figure,” said Mariana Gheorghe, OMV Petrom CEO.

“Our Q1/17 Operating Result was also supported by fiscal easing in Romania, in particular the elimination of the tax on special constructions starting January 2017,” she added.

OMV Petrom is part of Austrian group OMV, which holds a 51% majority stake in the company. The Romanian state also controls 20% of the company’s shares and Fondul Proprietatea holds 12.5%.

OMV Petrom’s shares, which are traded on the Bucharest Stock Exchange under the ticker SNP have gone up more than 23% since the beginning of this year, and over 40% in the last six months, on the back of improved financial results and better market conditions.

Last year, OMV Petrom made a net profit of RON 1.04 billion (EUR 231 million), after the company had registered losses in 2015. The shareholders will receive RON 850 million worth of dividends from last year’s profit, with the dividend yield of 4.6%, considering the current share price.

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editor@romania-insider.com