(Reuters) -Romanian oil and gas group OMV Petrom reported a 57% slump in fourth-quarter adjusted operating profit on Tuesday, citing weaker commodity prices and the impact of gas and power regulations.
The company said it aims to invest around 8 billion lei this year mainly in its Neptun Deep Black Sea offshore gas project and renewable power projects, having ramped up investment by 52% to 7.2 billion lei overall in 2024, provided the fiscal and regulatory framework remain stable and competitive.
“There are parts of our capex which are relatively fixed and parts … which are very flexible,” Chief Executive Christina Verchere said.
“So, if something really dramatic happens, not just necessarily on the regulatory side, even on the pricing side, there is more that is fixed than we’ve had in the past … but there is some very variable that you can adjust accordingly and we would respond.”
The Bucharest-listed company posted an adjusted operating profit of 955 million lei ($197.61 million), down from 2.24 billion lei a year earlier.
The clean operating result, which is based on the current cost of supply, excludes one-off items and short-term gains and losses from energy inventory holdings.
OMV Petrom, majority-owned by Austria’s OMV, reported a weaker performance across all segments for the quarter, pressured by lower oil prices and sales volumes, reduced margins from regulatory changes, and declining refining and sales margins.
A turnover tax introduced in 2024 is estimated to cost OMV Petrom around 250 million lei in 2025, up from 216 million lei last year.
A new 1% tax on special buildings introduced in late December was also seen as having an impact valued at millions of euros.
The company said drilling was expected to start this year for Neptun Deep in the Black Sea, one of the European Union’s most significant natural gas deposits. The company said its plans for 2.5 GW of renewable power by 2030 remained unchanged.
“We expect 2025 to be a difficult and volatile year, with fiscal and regulatory challenges,” Verchere said, adding that a balance was needed between meeting short-term fiscal needs and supporting long-term development.
($1 = 4.8328 lei)
(Reporting by Antonis Pothitos and Luiza Ilie; Editing by Christian Schmollinger, Sherry Jacob-Phillips and Bernadette Baum)
