The capital market reacted swiftly to the announcement of results, as Petrom’s quotation on the Bucharest Stock Exchange (BVB) dropped 4.5 percent yesterday, lowering the company’s market capitalization by as much as €350 mln.
OMV registered €1.34 bln in net earnings in H1, 53 percent higher than in the first half of 2007, as sales increased by 41 percent.
Analysts say that Petrom’s profit was below expectations due to provisions worth €124 mln in the second quarter for risks and litigation with current and former employees. Analysts were forecasting an average €555 mln in net earnings for Petrom.
Meanwhile, the company is negotiating a loan of up to €500 mln from a consortium including at least five banks. Petrom estimates talks will be concluded in a month or two. “Current market conditions are much worse, more expensive than one year ago. The loan will be used for cash-flow needs, to pay dividends, and cover several investments,” Petrom General Manager, Mariana Gheorghe, told Business Standard.
