Austria’s OMW Grants Romania’s Petrom EUR500M Loan

The money will be used to cover Petrom’s financial needs.

"These funds are part of a larger financing program approved in July 2008 to sustain the company’s reorganization and upgrade. We have very ambitious targets in developing the company and investments are accordingly. We have the advantage of being part of a leading Central European group, due to the strategic partnership signed with OMV," Petrom’s CEO Mariana Gheorghe said.

In the last three years and nine months, Petrom has invested EUR3.56 billion in upgrade works. The company’s most important long-term objectives include stabilizing the crude oil and gas production in Romania, upgrading the Petrobrazi refinery and building a 860-MW gas-fueled thermal power plant.

Petrom is also considering the possibility to diversify the sources of energy and develop its own gas storage facilities.

Petrom is the largest corporation in Romania and the largest gas and oil producer in Southeastern Europe. In December 2004, Petrom was privatized and became a part of OMV AG (OMV.VI), which is the majority shareholder, with a 50.1% stake. Romania’s Economy Ministry owns a 20.63% stake in Petrom, investment fund Fondul Proprietatea owns a 20.11% stake, while 8.24% of the company’s shares are listed on the stock exchange.

On Tuesday, Petrom’s shares closed down 5.8% on the day at RON0.179.

The company’s net profit rose 48% in the first nine months of last year, at RON2.29 billion, compared with the similar period a year earlier, while its revenues were up 62% at RON15.08 billion.