The scope of OMV Petrom’s business activity, both existing and planned, and the markets in which the company operates inherently expose it to significant commodity price, foreign exchange, operational and other risks. A detailed description of risks and risk management activities can be found in the 2016 Annual Report (pages 55-57).
In 2017, the main uncertainties which could impact the company’s performance remain the commodity price risk, operational risks as well as political and regulatory risk. The commodity price risk is being monitored constantly for developments and, if appropriate, protective measures are taken (e.g. entering into hedging agreements).
Through the nature of its business of extracting, processing, transporting and selling hydrocarbons, OMV Petrom is inherently exposed to safety and environmental risks. Through the company’s HSSE and risk management programs, OMV Petrom remains committed to be in line with industry standards.
In terms of political and regulatory risk, the company is in dialogue with the Romanian authorities on topics of relevance for the industry.
Also refer to the Outlook section of the Director’s report for more information on current risks.