Analysts expect Petrom profit to double in H1

Most analysts estimate net profit between €445 mln and €640 mln for Petrom, with an average of some €540 mln, 2.2 times higher compared to H1 of 2007

Petrom could post for the second quarter some €300 mln in net profit, close to the earnings registered in Q1, but almost double year-on-year, analysts interviewed by Business Standard said.

ING Bank, Unicredit Group, KBC Securities and Raiffeisen Centrobank Austria analysts participated in the poll. “Revenue increase due to high oil prices will erase the negative impact of a stronger leu and those of the refinery segment, which brings losses to the company,” said Raiffeisen Analyst Philipp Chladek.

Petrom turnover could reach almost €1.91 billion in H1, 30 percent higher year-on-year.

In Q2 2007 Petrom posted net profit worth €143.86 million and turnover worth €761 million. In Q1 2008 the company posted net profit worth €277.78 mln and turnover worth €1.05 bln.

Analysts say the effect of oil price increase will be partially annulled by the leu’s appreciation compared to the US dollar and primes payment to employees.

“The results will include salary compensation provisions worth some €113.73 mln. Although it is likely Petrom to report positive results, we expect these figures to have a neutral impact on the capital market,” KBC Securities Analyst Olena Kyrylenko.