Petrom plans for a net profit of 2.3 billion lei

The management of OMV Petrom will propose to shareholders a budget for 2011 which includes an estimated net profit of 2.31 billion lei and a turnover of 12.69 billion lei (according to the Romanian Accounting Standards). Thus, compared to 2010, the company officials expect the profit to increase 29% and turnover to fall 9%. According to data published on Friday on the company"s website, the operating profit (EBITDA) will reach 4.8 billion lei this year.

The approval of the budget for the year 2011 of OMV Petrom will be discussed in the General Shareholder Meeting (AGA) of April 26th.

For 2011, OMV Petrom has budgeted total investments of 4.94 billion lei. 67% of that amount will be spent on exploration and production, 21% on refining and marketing and 9% on energy.

Company officials forecast a total output of oil and gas of 62.08 million barrels (bep), down more than 7% over 2010. Thus, gas output will reach 32.8 million bep, whereas oil output will reach - 29.1 bep. Petrom also estimates a fall in the sales of refined products, from 5.47 million tons in 2010 to 4.26 million tons in 2011.

• The price of oil will remain volatile in 2011

The management of Petrom expects the price of oil to remain volatile this year, with fluctuations of 80 to 100 dollars a barrel. The company officials show: "Given the current economic environment and the long term outlook for the industry, we will continue to use the existing assets in a flexible manner and we will pursue their improvement, starting with the modernization of the refining and marketing segment. The Romanian economy is expected to exit the recession in 2011".

On the Exploration and Production segment (E&P), the main goal will be to continue with the efforts to compensate with the natural decline. The representatives of Petrom claim: "We will continue to move on with the redevelopment of our key deposits, with focusing on water and steam injection. Furthermore, we will optimize our gas production systems and we will modernize the facilities and equipment in the selected major areas". Other goals are the construction of development drills, the program for drill repairs and surface operations and the waste management program.

• Investments in Petrobrazi will continue

Petrom will direct its efforts towards the streamlining of its activity by improving the performance of the Petrobrazi refinery to allow the processing of the entire crude output in Romania. On the Refining and Marketing segment, the company will continue with the program for the modernization of the terminals and the construction of the Işalniţa warehouse.