Romania's OMV petrom reports a 41% increase in profit on the back of stronger gas, power and refining.
Romanian oil-and-gas group OMV Petrom announced a 41% increase?in adjusted operating profit for the fourth quarter on Wednesday. This was driven by'stronger refining, higher gas and electricity margins and 'increased sales of gas.
The Bucharest listed group reported operating profit of 1.35 billion leu ($313.6m) adjusted for current clean cost of supply, up from 955 millions lei a year ago.
The clean operating result is based upon 'the current cost of supplies. It excludes special items, short-term gains or losses, and energy inventory holdings.
Gas and Power Clean operating profit increased to 344 millions lei from a loss of 76 million lei, thanks to an increase in sales by 10% to '14.0 TWh (the highest fourth quarter output since 2019)'.
The refining margins have more than doubled, to $16.80 per barrel. This is due to the strength of gasoline and diesel.
The capital expenditures increased by 9%, to 2.6 billion lei. This is mainly due to the investments made in the Neptun Deep Offshore Gas Project.
Neptun Deep is one of Europe's largest natural gas reserves. It holds 100 billion cubic meters of recoverable gas.
OMV Petrom has announced that it will drill development wells at the Domino field in this year. The Anaconda-1 deepwater exploration well will follow.
OMV Petrom anticipates a net capital expenditure up to 9.4 milliards lei for?2026. This includes?9 billion lei of organic spending, mainly focused on Neptun Deep and renewable fuels projects. The company warned that the record level of investment will result in negative free cashflow.
(source: Reuters)
