Analysts expect Petrom profit to double in H1

Record oil prices in the first half of 2008 could boost Romania's largest company profit more than twice. Analysts estimate Petrom oil company to register earnings worth some €540 million 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.

Business Standard