Romanian leading oil company OMV Petrom (SNP.RO) Wednesday said its net profit rose 72% on the year to a record 3.76 billion lei ($1.14 billion) in 2011, fueled by higher crude oil prices and lower costs, news agency Mediafax reports.
In 2010, Petrom, the Romanian arm of Austria's OMV (OMV.VI), reported a net profit of RON2.2 million.
The results "were driven by the favorable crude price environment as the average Urals crude price reached $109.60/bbl, 40% above 2010," Petrom said in its preliminary financial report.
In the fourth quarter, Petrom posted a net profit of RON838 million, up 8% from the same quarter of 2010.
The company reported earnings before interest and tax, or EBIT, rose 65% on the year to RON4.94 billion in 2011. Clean EBIT, adjusted for special one-time items, stood at RON5.47 billion, up from RON3.3 billion in the previous year.
Petrom said consolidated sales rose 21% on the year to RON22.6 billion ($6.87 billion) in 2011, largely boosted by higher oil and fuel prices and increased gas sales volumes. The results were partially offset by the negative impact from oil price hedges.
The refining and marketing division contributed 83% to the consolidated sales in 2011, Petrom said. R&M sales rose 25% on the year to RON18.9 billion.
"Despite the subdued retail market demand, 2011 was the first year after privatization with a positive clean CCS operational result in R&M, supported by improved underlying operational performance in refining," said Mariana Gheorghe, Chief Executive Officer of OMV Petrom.
The group's oil, gas and NGL production reached 67.77 million barrels of oil equivalent in 2011, up 1% from around 67 million boe in 2010. Total oil, gas and NGL production in Romania stabilized at 63.41 million boe, while output at the Kazakhstan fields increased 20% on the year to 4.36 boe million.
At the end of 2011, the group's total proven oil and gas reserves amounted to 812 million boe, while the proved and probable oil and gas reserves amounted to 1,126 million boe.
Petrom's results are consolidated, unaudited and calculated according to IFRS.
On the Bucharest market Tuesday, Petrom closed up 2.63% at RON0.39 a share.