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The presentation of the results for Q3 and January - September 2010

Petrom, the largest oil and gas producer in Southeastern Europe, published its results for the third quarter and January – September 2010, prepared according to the International Financial Reporting Standards (IFRS), on November 10, 2010 at 8:30 (local time).

  • Q3/10 results burdened by one-off charge in Kazakhstan: While clean CCS EBIT was only 7% lower compared to Q3/09, Q3/10 EBIT fell 62% due to an impairment in Kazakhstan; however, EBIT recorded in 9m/10 is 41% higher compared to the same period of 2009
  • Investments step up: Q3/10 CAPEX 50% higher compared to Q3/09, while 9m/10 level is up by 9% compared to the same period of 2009
  • Positive quarterly oil and gas production development: Q3/10 Group hydrocarbon production relatively stable compared to Q3/09 and 2% higher compared to previous quarter
  • Outlook for 2010: We expect market conditions to remain challenging throughout the last quarter of 2010, marked by a volatile environment; we will sharpen our focus on cost control and efficiency measures and accelerate 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):
Report Q3 and January – September 2010, (PDF, 369,4 KB)

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

Click here to acces the audio-webcast:  http://www.thomson-webcast.net

Mariana Gheorghe, CEO of OMV Petrom S.A.: "Throughout the third quarter of 2010, the favorable crude price environment and the continuous optimization of refineries’ operations supported our underlying performance. Furthermore, the ongoing improvement in our cost base helped us mitigate the effects of further deterioration of domestic demand, in both the fuels and gas market. Our bottom line was adversely affected in Q3/10 by the impairment of Kazakh assets and FX losses due to USD loans given to our Kazakh subsidiaries. In the past months, in line with our strategic directions, we made visible progress on the power project at Brazi and entered partnerships with internationally reputed companies in order to maximize production on selected mature fields, with cumulative production enhancement of 50% expected from the respective fields in the next five years. In the remaining part of 2010, we will step up our investment efforts with a particular focus on E&P drilling and well workovers in order to largely offset natural decline production whilst keeping our focus on cost management and financial discipline to ensure sound results despite weakening market conditions." 

Q2/10 Q3/10 Q3/09

∆%

Key performance indicators
(RON mn)

9m/10

9m/09

∆%

2009
728 336 887 (62) EBIT 2,012 1,426 (41) 1,620
720 789 931  

(15)

 Clean EBIT

2,451

1,557

(57)

2,315

680 760 820 (7) Clean CCS EBIT 2

2,354

1,283 (84) 1,870
718

(100)

642 n.m.

 Net income after minorities

1,421 989 (44) 860
677 226 573 (61)  Clean CCS net income after minorities 2

1,678

855 (96) 1,056
0.0127

(0.0018)

0.0114 n.m EPS (RON) 0.0251 0.0175 (43) 0.0152
0.0120 0.0040 0.0101

(60)

 Clean CCS EPS (RON) 2

0.0296 0.0151 96 0.0186

1,289

352 930

(62)

 Cash flow from operations

2,565

1,484 73 2,726
- - - n.m.

 Dividend per share (RON)

- - n.a. -

1 The financials are unaudited and represent Petrom Group’s (herein after also referred to as “the Group”) consolidated results prepared according to IFRS; all the figures refer to Petrom Group, unless otherwise stated; financials are expressed in mn RON and rounded to closest integer value, so minor differences may result upon reconciliation; Petrom uses the National Bank of Romania exchange rates for its consolidation process

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