OMV Petrom, the largest oil and gas producer in South-Eastern Europe, contracted a EUR 1 billion multi-currency credit line from a syndicate of 17 Romanian and international banks.

This facility replaces a EUR 930 million syndicated loan facility contracted in November 2011 which the company hasn’t used.

The new credit line has a 5-year maturity and can be extended by another 2 years. BRD-Groupe Societe Generale and UniCredit Bank Austria have coordinated the deal.

"We refinanced the credit line contracted in 2011 before its final maturity in order to benefit from the current favorable developments of financial markets,” said Andreas Matje, CFO OMV Petrom.

“Extending the maturity of the financing program allows OMV Petrom to maintain a solid financial position in a challenging crude price environment. The fact that the loan was oversubscribed in a relatively short timeframe is a confirmation of OMV Petrom’s credibility on the financial markets", he added.

OMV Petrom has budgeted investments worth some EUR 1.2 billion this year, 20% lower compared to those it made in 2014, because of the low crude oil prices. The group reduced its net profit by two thirds in the first quarter of 2015, as its sales declined.

OMV Petrom is the largest integrated oil and gas group in South-Eastern Europe, with an annual oil and gas production of approximately 66 million boe in 2014. The Group has a refining capacity of 4.5 million tons / year and operates an 860 MW gas power plant and a 45 MW wind park. OMV Petrom is present on the oil products retail markets in Romania and neighboring countries through about 780 filling stations as of end of 2014.

Austrian group OMV holds a 51% of OMV Petrom’s shares. The Romanian state holds 20.64% of the company, and local investment fund Fondul Proprietatea holds 19%. The remaining 9.36% is free float on the Bucharest Stock Exchange.

OMV Petrom currently has a market capitalization of some EUR 4.85 billion (as of May 21, 2015).

Andrei Chirileasa, andrei@romania-insider.com