Business News

OMV's first-quarter profit multiplies amid high oil prices

May 7, 2010, 9:47 GMT

Vienna - Austrian oil and gas group OMV reported Friday that its net profit increased nearly nine-fold year-on-year in the first quarter, to 346 million euros (440 million dollars), as crude oil prices reached high levels during that period.

The average price for the benchmark crude oil brand North Sea Brent stood 72 per cent higher than in the same period last year.

In the first three months of 2009, OMV had made a profit of 40 million euros.

Revenue rose 23 per cent to 5.29 billion euros in the first quarter.

Besides higher oil prices, cost reductions also contributed to improved results, with OMV's operating profit more than doubling from 266 million to 710 million euros.

Romanian subsidiary Petrom contributed 230 million euros to the operating profit, up from 77 million euros in the first quarter of 2009.

'Despite the encouraging start to the year, the market for refined products is expected to remain challenging throughout the year 2010,' until there are clearer signs of economic improvement, OMV's management wrote in its quarterly report.