On the occasion of her visit to Romania, Christine Lagarde, Managing Director of the International Monetary Fund (IMF), was accompanied by Mr. Cristian Popa, Deputy Governor of the National Bank of Romania (NBR), to Petrom City, OMV Petrom’s central headquarters, today.
At Petrom City, IMF and NBR representatives visited an exhibition about the history of the Romanian oil and gas industry and discussed aspects related to the company’s evolution after the privatization. The IMF is one of the international financial institutions that, together with the World Bank and the European Bank for Reconstruction and Development, supported the company’s privatization process.
Gerhard Roiss, OMV Chief Executive Officer: "It is a great honor to welcome Ms. Lagarde and the delegation of the International Monetary Fund at OMV Petrom headquarters. The company is a European benchmark for the successful restructuring of a national oil and gas company. OMV Petrom is a sustainable and profitable company that has invested EUR 9 bn in Romania during the last eight years thereby positively impacting the Romanian economy and the labor market."
Mariana Gheorghe, CEO OMV Petrom: "It gives us great pleasure to welcome the IMF delegation, nine years since the signing of the privatization contract, a period during which OMV Petrom went through a radical transformation process. We are now the best placed Romanian company in the top 50 companies in Central and South-eastern Europe and we want to remain there. We have a clear growth strategy and, given a favourable business environment, we would continue to invest at the same high level, around 1 billion euro per year. In this way we will contribute to the increase of Romania’s energy security and economic growth."
- Presently the company has a considerable positive impact on the Romanian economy:
- With sales of around EUR 6 bn, the direct added value in the economy amounts to around 2% of Romania’s GDP (2012);
- OMV Petrom is the largest contributor to the unconsolidated state budget, with around EUR 2 bn per year, equivalent to around 10% (2012);
- The company generates the largest investments in the energy sector. In 2012, they were equivalent to approximately 14% of public investment. During 2005-2012, OMV Petrom investments amounted to almost EUR 9 bn;
- OMV Petrom is the largest private employer in Romania, generating around 80,000 jobs directly and indirectly;
- The company’s productivity increased approximately 3.5 times in real terms during 2004-2012;
- The company’s activity after the privatization contributed to the revitalization of the energy sector, by attracting new investors on the Romanian market, by means of partnerships but also by stimulating the local market via increased demand of services and products. In 2012, OMV Petrom’s number of suppliers amounts to around 15,000, of which about 90% Romanian companies.
Through its business, OMV Petrom contributes to the increase of Romania’s energy security, supplying around 40% of the oil, gas and fuels demand. By developing an electricity generation capacity near Ploiesti, OMV Petrom can generate around 10% of Romania’s electricity demand.
The company gives special importance to principles of corporate governance and principles arising from the Corporate Governance Code issued by the Bucharest Stock Exchange (BSE). More than this, the company applies internationally certified management systems for Environment, Quality, Compliance and IT.
In the past years, the company was actively involved in projects for people and communities and through its projects promotes a responsible and sustainable approach to business. This implies the efficient use of natural resources, safety and high standards and as well as creating value for all stakeholders on the medium and long term. During 2007-2012, the company allocated over EUR 30 mn for social and community programs that target environment protection, education and community development.
The company’s strategy for 2021 aims at sustainable performance for growth. OMV Petrom will continue to invest in Romania at the same high level of approximately EUR 1 bn/year, assuming an investment friendly, predictable fiscal and regulatory regime.
About Petrom City
Petrom City, OMV Petrom’s headquarters, is situated in the northern part of Bucharest and was built following a EUR 130 mn investment. Petrom City is formed of two office buildings, a data centre – one of the most modern in Europe, a 5 MW power plant and a 900 spaces parking area, on a built surface of 100,000 sqm.
The land on which the complex was built, a former oil products storage, bombed during the Second World War, was the object of the largest rehabilitation project in Romania, amounting to EUR 16 mn.
The project included the construction of the road infrastructure, both inside Petrom City as well as in its perimeter, in total length of 1.7 km, an investment which accounted for EUR 11 mn. The roads are equipped with lighting system, green areas and bicycle lanes while the entire cable network is underground.
OMV Petrom Group
OMV Petrom is the largest oil and gas group in South-eastern Europe, with activities in the business segments of Exploration and Production, Gas and Power as well as Refining and Marketing. The Group consolidated its position on the oil market in South-eastern Europe following a far-reaching modernization and efficiency increase process whereas investments accounted for more than EUR 8.8 bn during the last eight years.
As of the end of 2012, the Group exploited proved oil and gas reserves of approximately 775 mn boe in Romania and Kazakhstan (thereof 750 mn boe in Romania). With a maximum annual refining capacity of 4.2 mn t, OMV Petrom is present in the distribution market for oil products in Romania, the Republic of Moldova, Bulgaria and Serbia through a network of approximately 800 filling stations, operated under two brands, Petrom and OMV. In Romania, this activity is performed through OMV Petrom Marketing, 100% owned by OMV Petrom.
For its sustainable development, OMV Petrom has expanded the gas value chain into power. In this context, OMV Petrom started commercial operations of the 860 MW gas fired power plant at Brazi and at the Dorobantu 45 MW wind park.
In 2012, the Group’s turnover was EUR 5,891 mn, EBIT was EUR 1,270 mn.
OMV, Austria’s largest listed industrial company holds a 51.01% share in OMV Petrom. In Exploration and Production, OMV is active in two core countries Romania and Austria and holds a balanced international portfolio. In Gas and Power, OMV sold approximately 437 TWh of gas in 2012. In Refining and Marketing, OMV has an annual refining capacity of 22 mn t and approximately 4,400 filling stations in 13 countries including Turkey as of the end of 2012.
The Ministry of Economy holds 20.64% of OMV Petrom shares, the Property Fund holds 18.99%, the European Bank for Reconstruction and Development 1.62% and 7.74% is free float on the Bucharest Stock Exchange.