Romania’s top oil and gas group OMV Petrom said on Thursday its net profit soared to 2.864 bln lei (€579 mln) in 2021, compared to 1.291 bln lei in the previous year, according to See News.
„The good performance was mainly facilitated by the favourable market environment, while in 2020 results were negatively impacted by lower prices and the Covid-19 crisis, as well as by the net impairments triggered by a revision of price assumptions,” OMV Petrom said in an unaudited consolidated financial statement filed with the Bucharest Stock Exchange.
„The global outbreak of the COVID-19 pandemic still has a major impact on global economic development. Commodity prices remained at elevated levels and volatile in the fourth quarter, which is expected to impact demand from customers,” added OMV Petrom.
The group expects demand for oil products to be on a slight upward trend in 2022, while demand for electricity is expected to be similar to 2021. Demand for natural gas is expected to be lower than last year’s.
OMV Petrom’s sales rose 32% year-on-year to 26 bln lei in 2021, mainly supported by higher sales of petroleum products in terms of both prices and volumes, partially offset by lower sales volumes of natural gas and electricity. Downstream oil contributed 74% of total consolidated sales, downstream gas accounted for 25%, and upstream for 1%.
Capital expenditure amounted to 2.821 bln lei in 2021, 12% lower year-on-year, and was mainly directed to upstream investments of 2.025 bln lei. The group said it estimates capital expenditures around 2.6 billion lei in 2022, as it plans to drill around 60 new wells and sidetracks and perform around 600 workovers.
In the upstream segment, OMV Petrom swung to a 1.660 bln lei operating profit in 2021, from a 985 mln lei operating loss in 2020.
Total sales of refined petroleum products increased by 7% in 2021. Group retail sales volumes were up by 12%, indicating a development above pre-Covid level. Non-retail sales slightly increased by 1% in 2021, reflecting the partial recovery of the aviation business and market opportunities in the commercial sales channel as well as lower exports.
In the fourth quarter alone, OMV Petrom’s net profit rose to 1.188 bln lei from 465 mln lei in 2020. Sales in the fourth quarter of 2021 surged by an annual 95% to 8.965 bln lei.