Romanian oil and gas giant OMV Petrom, majority-owned by Austria’s OMV, has reported a substantial 57 per cent decrease in its fourth-quarter adjusted operating profit.
The company attributes this decline to regulatory impacts on gas and power, as well as weaker commodity prices.
OMV Petrom faced additional challenges including lower oil prices, reduced sales volumes, and declining refining and sales margins.
The adjusted operating profit fell to 955 million lei (AU$317 million) from 2.24 billion lei (AU$ 743 million) in the same period the previous year.
This clean operating result, based on the current cost of supply, excludes one-off items and short-term gains and losses from energy inventory holdings.
Despite these setbacks, OMV Petrom has announced ambitious investment plans for the future.
The company intends to invest approximately 8 billion lei (AU$2.6 billion)this year, focusing primarily on the Neptun Deep Black Sea offshore gas project and renewable power initiatives.
This follows a 52 per cent increase in investment to 7.2 billion lei (AU$2.3 billion) in 2024, contingent on a stable and competitive fiscal and regulatory framework.
The company’s financial outlook is further impacted by recent tax changes.
A turnover tax introduced in 2024 is expected to cost OMV Petrom around 250 million lei (AU$82 million) in 2025, up from 216 million lei (AU$71 million) last year.
Additionally, a new 1 per cent tax on special buildings, introduced in late December, is anticipated to have a financial impact valued at millions of euros.
Looking ahead, OMV Petrom remains committed to its strategic projects.
The company plans to start drilling this year for Neptun Deep in the Black Sea, which is considered one of the most significant natural gas deposits in the European Union.
Furthermore, OMV Petrom has set an ambitious goal to achieve 2.5GW of renewable power capacity by 2030.
These developments come at a time of significant challenges and opportunities in the energy sector, as companies navigate regulatory changes, market fluctuations, and the transition to more sustainable energy sources.
