OMV Petrom estimates investments of nearly $ 1 billion in 2019

By Emea Riga
OMV Petrom estimates investments of 4 billion lei (almost $ 1 billion) for the whole of 2019, 75% going to the Upstream operating and production segment. After the first six months the company reported investments of 1.7 billion lei, according to the financial results published Wednesday on the Bucharest Stock Exchange.
Last year, the company made investments worth 4.29 billion lei, up 44% compared to 2017. ‘The value of investments is currently estimated at about 4 billion lei (revised upwards from 3.7 billion lei). Of this amount, about 75% will be directed to Upstream.
Upstream investments in the mentioned period were 1,333 billion lei, compared with 1,441 billion lei in the same period of 2018, while in the Downstream division 356 million lei were invested, of which 275 million lei in the Downstream Oil segment.
For the full year 2019, OMV Petrom expects the average price of Brent crude oil to be $ 65 / barrel (bbl), down from the same period – $ 71 / bbl.
Refining margins are estimated to be around $ 5 / bbl (revised below $ 6 / bblI), while in 2018 they were $ 6.28 / bbl.
According to OMV Petrom, demand for petroleum products is expected to be above the level recorded in 2018, and demand for natural gas and electricity is expected to be relatively similar compared to 2018.
In the Upstream segment, the group estimates that production will decrease by about 5% compared to the previous year, not including portfolio optimization initiatives, mainly due to the natural decline and maintenance activities. The group plans to drill about 100 new wells and sidetracks and maintain a constant level of capital repairs compared to the previous year, while exploration investments are estimated at around 400 million lei.
On the Downstream segment, the refinery utilization rate is estimated at around 95%.
‘The OMV Petrom Group must supply the regulated market with 12.5 TWh of natural gas for the period May – December 2019 at a maximum price of 68 lei / MWh. We estimate total natural gas sales higher than in 2018. The Brazi power station must supply the regulated market with 1.14 TWh of electricity for the period March – December 2019 at the price of 259.58 lei / MWh and we estimate a total net energy production. electricity lower than 2018 ‘, the OMV Petrom report shows.
OMV Petrom posted a net profit growth of 53% in the first half of this year, the net result being 1.975 billion lei, compared to 1.288 billion lei in the same period of last year, according to the financial results transmitted Wednesday to the Bucharest Stock Exchange .
After the first six months of 2019, OMV Petrom has 12,767 employees, down from 13,421 in the same period last year.
The Austrian OMV Group is the majority shareholder of Petrom, with a 51.01% stake, while the Ministry of Economy holds a package of 20.64% of the shares and the Proprietatea Fund 20.11%.
Petrom is the largest Romanian oil and gas company, with activities in the Upstream, Downstream Oil, Downstream Gas sectors.