Petrom sees gross profit double

SNP Petrom, Romania’s largest oil company, posted H1 profit worth 2,328 billion ROL (57.3 million euros), double the value logged in the corresponding period of last year, in ROL. The company, which is about to be taken over by Austrian oil group OMV, has also dismissed 11% of its staff during the same period, down to 50,427 employees. However, it remains among the most oversized European oil companies in terms of staff.

Petrom netted profit worth 1,085 billion ROL (26.7 million euros) in the first six months of the year, up 12% in euros, whereas total revenues posted a slight increase, reaching 1.08 billion euros. Turnover was worth 977 million euros.

The value of operating profits has reached 2,634 billion ROL (64.8 million euros), according to the report filed by the SNP Petrom administrators, which states that the values are not in line with International Accounting Standards (IAS). Petrom registered net profit of nine million euros in 2003, in line with IAS.

SNP Petrom management could not be contacted by the time of going to press to comment on the company’s financial statements for the first half of 2004.

In the quoted period, Petrom continued its restructuring programme decided together with the international financial bodies. As of May 1 2004, it outsourced its intervention activities, capital repairs and other operations carried out by seven subsidiaries, which led to the reduction of the number of employees by more than 5,400. The company has also invested 132 million euros, with over half of the money having been directed at drilling operations, as well as natural gas and crude oil production.

Investments in environmental protection works totaled 686 billion ROL (17 million euros) in the first half of the year.