OMV Petrom, the largest oil and gas producer in Southeast Europe, reported a net profit of 1.748 billion RON in the first three months of the year, three times higher than in the first quarter of last year, according to data released by the company.
Petrom’s three-month profit, 1.74 billion RON, significantly exceeds that of the last quarter of last year (1.19 billion RON), and by far that of the last quarter of last year, when the market however, it was under the effect of the Covid 19 pandemic, of 573 million RON.
The company’s revenues were 11.9 billion RON in Q1 2022, compared to 4.8 billion RON in the same quarter of 2021 and 8.9 billion RONin the previous quarter.
“The value of consolidated sales revenue increased by 145 percent compared to Q1 / 21, supported mainly by higher commodity prices and higher volumes of oil and electricity sales,” the company said. “The operating result in Q1 / 22 increased to RON 2,185 mn, compared to RON 707 mn in Q1 / 21, mainly due to the market environment characterized by high prices,” says Petrom.
The company’s hydrocarbon production fell by 12.7 percent due to the sale of production assets in Kazakhstan in Q2 / 21 (resulting in a decline of 6.2 thousand boe / day compared to Q1 / 21), the transfer of 40 marginal deposits onshore oil and gas to Dacian Petroleum in Q4 / 21 (resulting in a decline of 1.0 thousand boe / day compared to Q1 / 21) and the sharp natural decline in the main deposits in Romania.
In Romania, the production of hydrocarbons decreased by 8.6 percent, to 10.91 million boe, the equivalent of 121.3 thousand boe / day (Q1 / 21: 11.95 million boe or 132.7 thousand boe / day), or 7.9 percent excluding portfolio optimization. Crude oil and condensate production in Romania fell by 5.9 percent to 5.25 million bbl, mainly due to the sharp natural decline and the transfer of marginal deposits to Dacian Petroleum. Natural gas production decreased by 11.0 percent to 5.67 million boe, being influenced by the sharp natural decline of the main fields (Totea Deep and Lebada Est), of the 4461 Totea Sud well and the transfer of some marginal deposits to Dacian Petroleum .
The volume of hydrocarbon sales decreased by 11 percent, due to the same factors that influenced production.
The BCC operating result excluding special items increased to RON 626 million in Q1 / 22 (Q1 / 21: RON 308 million) as a result of significantly improved refining margins, increased demand for fuels and higher refinery utilization. OMV Petrom’s refining margin indicator rose $ 15.51 / bbl to $ 18.31 / bbl in Q1 / 22 (up more than fivefold) due to better product differentials, especially diesel and gasoline, as well as the unprecedented large differential between the Urals and Brent, generated by the geopolitical context.
Total sales of refined products were 5 percent higher than in Q1 / 21, due to improved demand.
In the gas supply segment, sales were 11 percent lower, mainly due to lower supply sources. The net electricity production was 0.99 TWh, 16 percent lower, in the context of the planned overhaul for the entire capacity of the Brazi power plant in March 2022.
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