The presentation of the results for Q2 and January – June 2010

2010-08-04

Petrom, the largest oil and gas producer in South Eastern Europe, published its results for the second quarter and January – June 2010, on August 4, 2010 at 8:30 (local time), prepared according to the International Financial Reporting Standards (IFRS).

• Q2/10 results supported by favorable oil price environment and strict cost management: as the Urals crude price rose by 32% over Q2/09, clean EBIT significantly improved compared to Q2/09, increasing more than twofold
• Weak economic conditions continued to prevail in Q2/10, as reflected by our operational results: total marketing sales volumes decreased by 10%, hydrocarbon production was 2% lower than in Q2/09 while consolidated gas sales increased by 6% over the same period driven by increased demand; refining margins continued to improve slightly compared to Q1/10 driven by higher middle distillate cracks
• Outlook for 2010: we expect a challenging second half of the year, with difficult demand conditions and a continuing volatile environment affecting the refining margin indicator and FX rates; we will sharpen our focus on streamlining our cost position and pursue the implementation of our considerable investment program, mostly directed towards E&P and G&P

You can download the presentation of the results here (pdf format):
Results for Q2 and January – June 2010, (PDF, 399,3 KB)

The results will also be reviewed within OMV's analysts and investor conference call broadcast as a live audio-webcast at 11.30 am (CET)/ 12.30 (Bucharest time).

Mariana Gheorghe, CEO of OMV Petrom S.A.: "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. In E&P, production levels were below the levels recorded in Q2/09, as the natural decline of oil and gas production in Romania was not fully compensated by the new wells drilled and workover program. The R&M result was positive, driven by flexible refinery operations, optimization of supply in Refining as well as the improved margin environment. In G&P, our gas sales benefited from increased demand, whereas in the power business we consolidated our projects portfolio with the newly acquired wind power park in the Southeastern part of Romania. We will intensify our investment efforts and continue to sharpen our focus on cost management in order to withstand weakening market conditions. Moreover, we will prepare the implementation of the share capital increase for which we received authorization from our shareholders at the AGM on April 29, 2010 whilst pursuing the alignment with State’s initiative to sell part of its stake in Petrom (11.84%)."

¹  Adjusted for exceptional, non-recurring items; clean CCS figures exclude special items and inventory holding effects (CCS effects) resulting from the fuels refineries