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The presentation of the results for Q3 and January - September 2011

content provided by Strategy, Development & Investor Relations

Petrom, the largest oil and gas producer in Southeastern Europe, published its results 1 for Q3 and January – September 2011, on November 9, 2011 at 8:30 (local time).

  • Solid Q3/11 results and cash flows: Petrom Group’s clean CCS EBIT was 72% higher than in Q3/10, driven by a favorable crude price environment; clean CCS net income increased fivefold supported by favorable USD/RON FX while cash flows from operations increased fourfold against Q3/10
  • Operational highlights: Q3/11 Group total hydrocarbon production slightly above Q3/10 due to higher production in Kazakhstan; positive exploration developments in Romania - Totea deep discovery, exploration licenses renewal and entry into a new exploration phase of the Neptun block; improved underlying operational performance in refining helped offset weaker downstream margins; significantly higher gas sales compared to Q3/10 driven by industry demand
  • Outlook for 2011: We expect the market environment to remain challenging; the E&P focus will be to largely offset natural decline and the progress of exploration initiatives; R&M will continue operational optimization and the Petrobrazi modernization program; increased focus on G&P with the Brazi power plant expected to be available for commercial operations towards the end of Q4/11

You can download the presentation of the results here (pdf format):
Results for Q3 and January – September 2011, (PDF, 271,6 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.: "Overall, in Q3/11 we continued to benefit from a favorable crude price environment and the positive effects fostered by our strict cost management programs and improved operational performance. Throughout the quarter, our Group’s total hydrocarbon production was slightly higher compared to the same period in 2010. The restored growth of several commercial sectors in Romania supported our fuel and gas sales. However, the high crude price environment continued to subdue retail margins in particular but also refining margins due to higher crude costs. In the remaining part of 2011, we will pursue the progress of our key exploration initiatives, the potentially significant gas discovery (Totea deep onshore) and the work programs to be executed in the Neptun deep water offshore block, in joint venture with ExxonMobil and in the recently renewed exploration licenses. After marking our entry into the power business on October 1 with the start of commercial operations at the wind power park Dorobantu, we maintain focus on the power plant in Brazi, expected to be available for commercial operations towards the end of Q4/11. In a still challenging economic environment, we continue our cost management initiatives and financial discipline to ensure sound operational performance and improved cost position even in a potentially deteriorated market environment."

Q2/11 Q3/11 Q3/10

∆%

Key performance indicators
(RON mn)

9m/11

9m/10

∆%

2010
1,224 1,338 336 298 EBIT 3,754 2,012 87 2,986
1,310 1,357 789 72 Clean EBIT 3,966 2,451 62 3,537
1,266 1,306 760 72

Clean CCS EBIT 2

3,765 2,354 60 3,325
903 1,175 (100) n.m. Net income attributable to stockholders 3 2,919 1,421 105 2,201
935 1,148 226 408 Clean CCS net income attributable to stockholders 2,3 2,925 1,678 74 2,457
0.0159 0.0207 (0.0018) n.m.

EPS (RON)

0.0515 0.0251 105 0.0389
0.0165 0.0203 0.0040 408 Clean CCS EPS (RON) 2 0.0516 0.0296 74 0.0434
2,016 1,477 352 320 Cash flow from operations 4,759 2,565 86 4,630
- - - n.a. Dividend per share (RON) - - n.a. 0.0177

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
2 Adjusted for exceptional, non-recurring items; clean CCS figures exclude special items and inventory holding effects (CCS effects) resulting from the fuels refineries
3 After deducting net income attributable to non-controlling interests