Romania's largest vertically integrated oil company, Petrom SA (SNP.RO), said Wednesday its first-quarter net profit more than doubled to 977 million lei ($415 million) from RON381 million a year earlier, on higher oil prices and positive restructuring results, news agency Mediafax reported.
The company, which is majority-owned by Austria's OMV AG (OMV.VI), posted RON3.72 billion in first-quarter turnover, up 35% from RON2.75 billion in the corresponding period in 2007, due to higher oil prices.
"The strong results recorded in Q1/08 are the consequence of the favorable international oil price environment and the continuous progress of our restructuring and modernization programs," Petrom Chief Executive Mariana Gheorghe said in the statement.
The Bucharest-listed company said its first-quarter earnings before interest and taxes, or EBIT, more than doubled to RON1.03 billion from RON394 million in the first quarter last year on higher international oil prices.
In January-March, the company's investments nearly tripled to RON2.04 billion compared with RON551 million invested in the first quarter a year earlier, the statement said.
The investments were mainly directed to the company's exploration-production and refining units amid a major investment program which will continue until 2011, Petrom said.
"In order to meet our growth targets and the ongoing modernization of Petrom's operations while addressing the general trend of increasing costs in the oil industry, average annual investments of approximately EUR1.5 billion are planned until 2010," the company said.
For 2008, the company expects its net profit to grow around 36% to RON2.42 billion from RON1.77 billion last year, but said more significant earnings improvements are unlikely until its restructuring program is completed in 2011.
Petrom is the largest corporation in Romania and the largest gas and oil producer in southeastern Europe.
In December 2004, before OMV bought a 51% stake in Petrom for EUR1.6 billion, the company reported a net loss of RON974 million, under local accounting standards.
At 0843 GMT Wednesday, Petrom's shares on the Bucharest Stock Exchange were trading 0.20% higher on the day at RON0.4910, compared with a lower overall market.