Petrom to post up to €676 mln in profits for 2007

The company, owned by Austrian group OMV and listed on the Bucharest Stock Exchange (BVB) is to publish its financial results on February 26. It posted €647 mln in profits and €3.71 bln in turnover in 2006.

“I believe the most important factors impacting on Petrom’s results in 2007 were its output volume, which is to remain virtually unchanged compared to the previous year, higher oil prices, favorable for the company, and greater losses for the refining and marketing divisions,” said an analyst of ING Wholesale Banking, Tamas Pletser.

Raiffeisen Centrobank AG foresees €548.3 mln in profit for Petrom, close to estimates by EFG Eurobank Securities analysts, of €540.5 mln. “Petrom recently purchased part of [oil service provider] Petromservices, so there will be additional employees, increasing the company’s expenses,” said EFG Eurobank Analyst Manuela Oginja.

KBC Securities brokers were more optimistic, forecasting €676.87 mln worth of profit for the oil company, 1.3 percent lower year-on-year, and turnover of €3.75 bln. They indicated that Petrom shares have a 45 percent growth potential.

During yesterday’s BVB trading session, Petrom’s shares rose 2.7 percent, as financial markets are anticipating good financial results for the oil company. Since the beginning of 2008, the company’s titles dropped 23.34 percent, amid financial turmoil on international markets, with Petrom’s capitalization plunging to €5.91 bln.