Erste: Petrom’s dividends to increase by 3.8% in 2008

For each monetary unit invested this year in Petrom stock, investors will receive a higher dividend than last year. The price of Petrom shares has a growth potential exceeding 20 percent. Erste analysts forecast a target of RON 0.608/per share. Petrom officials did not wish to comment on Erste’s previsions.

“The perspective of a rise in oil prices fuels optimistic estimates for Petrom. The average price of oil this year will be higher than last year and in 2006, and Petrom stands to gain. Petrom makes more from its exploitation activities than it might lose from refining,” says market analyst Cristian Tudorescu.

Last year Petrom shares were subject to a downward trend. The company's capitalization is €7.95 billion, covering 35 percent of the market value for all companies listed on the Bucharest Stock Exchange.

Petrom, market leader in fuel distribution, is part of Austrian OMV group since 2004. The company had a profit of €460 million in the first ten months of 2007.