Romania OMV Petrom 2Q Net Profit Rises To RON718M

Petrom, the Romanian arm of Austria's OMV (OMV.VI), said the results were boosted by higher crude prices on international markets and strict cost control management.

The company reported consolidated sales of RON4.4 billion in the second quarter, up 28% on the year.

"During the second quarter of 2010, we continued to deliver solid results despite weakening demand conditions, thanks to our strong financial discipline, tight cost management and optimized operations," said Mariana Gheorghe, Chief Executive Officer of OMV Petrom.

The Urals crude price, the reference oil price for Romania, was 32% higher in the second quarter of 2010 compared to the same period a year earlier. The increase, combined with a less negative contribution from hedging activities led to a 38% increase of Petrom's average crude price to $66.76/bbl, the company said in its financial report.

Petrom said second-quarter earnings before interest and tax, or EBIT, rose 87% on the year to RON728 million, fueled by higher crude prices and a stronger US dollar. However, EBIT was negatively affected by higher royalties, the report noted.

Results are calculated according to IFRS.

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