The OMV Petrom Group reports a net profit of RON 2.67 billion, up by 44% against the similar period in 2017, of RON 1.85 billion.
According to preliminary financial unaudited results for the period concluded on September 20, 2018, released on Wednesday, the net profit in Q3 was of RON 1.38 billion, higher by 116% against the same period in 2017, of RON 639 million.
“In the first nine months of 2018, OMV Petrom benefited from improved commodity prices and higher power demand. Our 9m/18 Clean CCS Operating Result reached RON 3.4 bn, 25% higher yoy, with Upstream being the main contributor. The Downstream Clean CCS Operating Result amounted to RON 1.2 bn with a strong operational performance partially compensating the effects of the refinery turnaround in Q2/18 and the weaker refining margin environment compared to 2017, a release posted on the OMV Petrom website reads.
“Our operating cash flow increased to RON 5.6 bn in 9m/18, mirroring the Clean CCS Operating Result trend. In line with our guidance, we increased investments yoy, almost doubling the number of wells and sidetracks in Upstream, completing the refinery turnaround and advancing other Downstream Oil projects. As a result, our cash outflow for investing activities reached RON 3.1 bn. The 9m/18 free cash flow after dividends amounted to RON 1.3 bn.
In September 2018, we signed the transfer of nine marginal fields to Mazarine Energy, continuing our Upstream portfolio optimization initiatives.
The offshore law was approved by Parliament. We are currently reviewing the law to understand how it will impact our offshore business. Given the timeframe, we do not see a Neptun Deep final investment decision in Q4/18,” the release reads.
“In Q 3/18, the inflow of funds from profit before tax, adjusted for non -cash items such as depreciation and impairments, net change of provisions and other non-cash adjustments, as well as net interest and income tax paid, was RON 2,244mn (Q3/17: RON 1,651mn).
Changes in net working capital generated a cash inflow of RON 133mn (Q3/17: outflow of RON 181mn).
Cash flow from operating activities increased by RON 906mn compared to Q3/17, reaching RON 2,376mn.
In Q3/18, cash flow from investing activities resulted in an outflow of RON 1,159mn (Q3/17: RON 511mn) mainly related to payments for investments in intangible assets and property, plant and equipment, largely in the Upstream and Downstream Oil segments.
Cash flow from financing activities reflects an outflow of funds amounting to RON 64mn (Q3/17: RON 55mn), mainly arising from the repayment of tranches due in relation to a loan from European Investment Bank.
Free cash flow (defined as cash flow from operating activities less cash flow from investing activities) showed an inflow of funds of RON 1,218mn (Q3/17: RON 959mn).
Free cash flow after dividends resulted in a cash inflow of RON 1,217mn (Q3/17: RON 959mn),” the release also reads.