OMV Petrom published its results for January – June and Q2 2018 on Thursday, pointing to a 6% increase in consolidated sales.
According to the company release, the consolidated sales of RON 9,851 mn for 6m/18 increased by 6% compared to 6m/17, sustained by higher crude oil and natural gas prices and higher electricity volumes sold, which compensated for the lower quantities of petroleum products and natural gas sold and a lower selling price for electricity.
Downstream Oil represented 75% of total consolidated sales, Downstream Gas accounted for 22% and Upstream for 3% (sales in Upstream being largely intra-group sales rather than third-party sales). The Clean CCS Operating Result amounted to RON 1,694 mn, slightly up yoy (6m/17: RON 1,659 mn) supported by higher sales that were partly offset by the effect of the Petrobrazi refinery turnaround on both the Downstream Oil result and the Consolidation line.
The Clean Group effective tax rate was 19% (6m/17: 17%). Clean CCS net income attributable to stockholders was RON 1,214 mn (6m/17: RON 1,276 mn). Special items comprised net charges of RON (120) mn (6m/17: RON (77) mn) and inventory holding gains amounted to RON 207 mn (6m/17: inventory holding losses RON (5) mn).
The Reported Operating Result amounted to RON 1,781 mn, 13% above the 6m/17 level of RON 1,577 mn, supported by the favorable crude oil price development, which compensated for the Petrobrazi refinery turnaround effect.
The net financial result deteriorated to RON (198) mn from RON (121) mn in 6m/17, mainly due to higher interest expenses in relation to the discounting of receivables and the preliminary result of a fiscal review. As a result, profit before tax for 6m/18 of RON 1,583 mn improved compared with the result for the similar period of the previous year of RON 1,456 mn. Income tax amounted to RON (296) mn, while the effective tax rate was 19% in 6m/18 (6m/17: 17%).
Net income attributable to stockholders of the parent was RON 1,288 mn (6m/17: RON 1,210 mn).
The free cash flow after dividends reached RON 93 mn in 6m/18, the OMV Petrom release reads.