OMV Petrom Group results for Q2 and January – June 2016
including interim condensed consolidated financial statement as of and for the period ended June 30, 2016
Q2/16 vs. Q2/15
- Positive free cash flow, supported by continued cost management in a challenging environment;
- Group Clean CCS EBIT at RON 229 mn, down 65% vs. Q2/15, impacted by lower oil and gas prices, weaker refining margins and the planned refinery turnaround;
- Upstream: group hydrocarbon production at 177 kboe/d, lower by 2%; production costs in USD/boe down 8%;
- Downstream Oil: higher retail sales volumes sustained by market demand;
- Downstream Gas: gas sales volumes rose by 2%, supported by higher offtake by the Brazi power plant.
Mariana Gheorghe, CEO of OMV Petrom S.A.:
"In the first half of 2016, the difficult market environment adversely impacted our financial results, outweighing the effects from improved operational performance as well as strict cost discipline and cash management. The Upstream clean EBIT mostly reflected the drop in oil and gas prices, partly mitigated by the reduction in production costs. The Downstream clean CCS EBIT slightly improved, as a result of the favorable development of provisions for outstanding receivables in the gas business, which offset the effects of weaker refining margins and the planned refinery turnaround.
As the difficult market conditions persisted, we have continued our tight cost and capital expenditure management. Our CAPEX decreased by 35% vs. 6m/15, reflecting the completion of Neptun drilling and also the strict selection of investment projects. Moreover, the efficient cost and cash management helped us maintain a strong balance sheet and a single-digit gearing ratio.
Consultations regarding upstream oil and gas taxation are expected to continue in the second half of the year. As previously stated, a stable, predictable and investment-friendly fiscal and regulatory framework is a key requirement for our future investments, both onshore and offshore."
OMV Petrom published its results for January – June 2016, on August 10, 2016 at 8.30am (local time) / 7.30am (CEST) / 6.30am (BST).
The presentation by
- Mariana Gheorghe, Chairman of the Executive Board and CEO
- Andreas Matje, Executive Board Member and CFO
- Peter Zeilinger, Executive Board Member in charge with Upstream
was broadcasted as a live webcast at 3.00pm (local time) / 2.00pm (CEST) / 1.00pm (BST).
A replay of the webcast is available on the link here below.
Download the quarterly report Q2/16, (PDF, 430,1 KB)
Download the Q2/16 results presentation, (PDF, 322,5 KB)
Download the Q2/16 results presentation with speech, (PDF, 3,0 MB)
Download the OMV Petrom Quarterly Historical IFRS figures 2014 - 2016, (XLS, 235,0 KB)
Click here to access the webcast, (edge.media-server.com)