OMV Petrom SA, Romania’s largest oil company, sees a 2.7 percent increase in its 2012 profit as refining margins improve.
Net income will probably climb to 3.78 billion lei ($1.2 billion) from 3.69 billion lei in 2011, according to Romanian Accounting Standards, the Bucharest-based company said in a presentation to shareholders posted on its website today.
“Our objectives are the continued output stabilization and unlocking the country’s onshore and offshore exploration potential,” Petrom said in a statement. “Refining margins are expected to improve compared to low levels in 2011.”
Petrom and its majority owner OMV AG of Austria benefited from higher oil prices that boosted profits, while investments in new fields and cost-cutting measures started to pay off. The company plans to invest 5.22 billion lei this year.
Total oil and gas output in Romania may fall to 62.4 million barrels of oil equivalent from 63.4 million last year, according to the statement. Petrom also plans to sell this year about 4 million megawatt-hours of electricity produced by its Dorobantu wind-park and Brazi gas-fired power plant.
Shareholders are scheduled to vote on the company’s budget plan on April 27.
Petrom shares rose 3.4 percent to close at 0.393 leu in Bucharest today, valuing the company at 22.3 billion lei.