OMV Petrom SA (SNP), Romania’s largest oil company, said its third-quarter profit slumped 26 percent on higher financial costs.
Net income declined to 870 million lei ($248 million) from 1.18 billion lei a year earlier, the Bucharest-based unit of Austria’s OMV AG (OMV) said in a regulatory statement today. Its financial loss was 237 million lei, compared with a gain of 57 million lei a year earlier as interest-rate charges climbed.
Earnings before interest and taxes dropped 4 percent to 1.29 billion lei as exploration costs increased at the company, which together with Exxon Mobil Corp. (XOM:US) is searching for natural gas in the Black Sea. Production costs in Romania climbed 5 percent on higher personnel expenses, it said in the statement.
“Our investments focused on the exploration and production business to stabilize our hydrocarbon output,” Chief Executive Officer Mariana Gheorghe said in the statement. “We are seeking new growth opportunities in the neighboring Black Sea region, in joint venture with Exxon Mobil.”
Petrom’s new gas-fired power plant in Brazi, which started operations in August, will have a positive impact on the company’s Ebit in the fourth quarter, according to the statement.
Nine-month net income declined 1 percent to 2.9 billion lei from 2.92 billion lei, the company said.
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