PETROM S.A.


BVB TICKER:  SNP

Address:  BUCURESTI, sector 1, Calea Dorobantilor nr. 239

 Phone: +40 214060118

 www.petrom.com

 Date: 27.07.2007 


About the company

Petrom SA is the largest East European oil and gas group, with activities in the business segments of exploration and production, refining and petrochemicals, as well as marketing. Main products of Petrom are petroleum products, petrochemical products and corosion inhibitors. Petrom has estimated oil and gas reserves of 1 billion boe, a refining capacity of 8 million metric tons per year and 593 filling stations in Romania.

With its two refineries, Arpechim and Petrobrazi, Petrom is the largest refining operator in Romania, holding a refining capacity of 8 million tons per year. Both refineries are connected to an extensive pipeline infrastructure allowing crude to be transported from Petrom’s fields, as well as imported crude from the terminal Constanta on the Black Sea.

Technological processes allows both domestic and imported crude processing. Refineries can deliver products by pipeline (for the domestic market and for export at Port Constanta Terminal), by railway tanks and by road tanks.

Apart from its operations in Romania, the company operates in Bulgaria, Serbia, Hungary, Moldova. Kazahstan, Iran and Russia. In Moldova it operates 73 filling stations, being one of the leading oil companies, alongside with Lukoil. In Hungary there are 2 Petrom filling stations.

The research Institute for Refining and Petrochemistry (INCERP-Cercetare), located in Ploiesti, is recognised as an important partner in the crude oil and gas processing field. By its activity, INCERP permanently contributes to carrying out research - development programs for refineries. At the same time, the Institute provides services to other clients.
INCERP’s portfolio currently includes more than 360 invention patents, of which more than 80 are actually implemented in oil refineries from Romania, Syria, Jordan, Turkey, India, Pakistan, Albania, etc.

Refining Division has implemented an Integrated Management System for quality and environment certified by TUV Rheinland certification Body, according with ISO 9001:2000 and ISO 14001: 2004.

History

1997 - The set up of the National Oil Company Petrom SA.

1998 - INCERP Ploiesti, a new subsidiary fuses with the National Oil Company. The main objectives of the privatization strategy are established. The association between Petrom and ELF AQUITAINE was signed, as well as the agreement concession regarding the share exploration and development of the Neptun Block on the Black Sea. The society standards were drafted and approved at the same time with the appearance on the market of: Super Plus unleaded gasoline, the first 20W40 oil engine of the RO3 products. Plus unleaded gasoline, the first 20W40 oil engine of the RO3 products. The Licence for exploration and commissioning for the Jusaly Kazakhstan perimeter was obtained. The Orizont Platform performed drilling works for the Energy Company in Bangladesh. The set up of Petrom Hungary KFT branch and Petrom representations in Azerbaijan and Moldavia.

1999 - Petrom discovered the biggest Romanian oil field in the last 25 years on the Black Sea platform through Pescarus 60 well. The Doljchim Craiova plant was purchased becoming a new Petrom subsidiary. The first stage of the organization restructuring meaning the dismissal of 13 000 employees from the up-stream sector and the first stage of the company's privatization through a capital increase. Petrom signed an agreement with Universal Oil Products USA in view of the modernization of Arpechim and Petrobrazi subsidiaries. Petrom inaugurated the first Commercial Complex in Hungary which includes: a filling station, a motel, a restaurant, car washes, a store for complementary products and parking. Petrom becomes the holder of the following oil fields of Kazakhstan: Tasbulat, Turkmenoy and Aktas, and begins the social operations in view of exploration and extraction. The Essar Oil Limited contract was signed for commissioning, development and production works. In the off shore Block BB - OS5, in India. The mixed society Arab Petro BASE Ltd. of Petrom and BASE Group Intl. (USA) was set up.

2000 - The inaugurating of one of the most modern hospitals in Romania at the Petrom Videle subsidiary. In Hungary, the development of Petrom's oil products distribution network continues by the construction of new filling stations in Nagylak, Szeged, Budapest and Hegyshalom. The negotiations for the set up of a strategic alliance between Petrom, KAZAHOIL and KAZTRANSOIL in order to create a crude oil pipeline from Kazakhstan to East and Central. The development of Petrom oil products distribution network in the Republic of Moldavia began by the purchase of four filling stations. 62 and 62 bis Pescarus Wells were finished and the 63 Pescarus Well began drilling. In view of collecting and separating crude oil and natural gas in parks, Petrom continued to construct and modernize over 30 parks (15 parks were already in operation), some of them being finished in the first semester of 2001. The construction of 9 new, ecological separating parks and the modernization of another 28. The BLUE LINE began operating, a non-stop telephone line for the public. The modernization of 40 distribution stations and 3 new filling stations.
In Kazakhstan: the negotiations in view of purchasing of 95% of the social shares of the Kazakhstan company Oztyurk-Munai Ltd. In Iran: a permanent representative in Teheran studies the local market in order to find cooperating opportunities with Iran, so that Petrom could open a representation in this country. In Hungary: the construction of the filling station and car wash in Nagylak; Petrom Hungary performed repair works, created the industrial railway infrastructure and put into operation the Telekgerendas oil products depot. In Moldavia: The opening of the first oil products distribution station in Chisinau and the final works at the Ceucari complex, which began operating in March 2001. In December, the transfer agreement between ELF Petroleum Romania BV, owned by ELF Aquitaine, and CONOCO U.K. Limited was signed. The launching of RO3 20W40 Super 3 multigrade motor oil.

2001 - The construction and modernization of 24 separating parks. The distribution department infrastructure: 162 depots, 669 filling stations of which 578 are gas stations and 91 domestic use stations, 24 auto gas filling skids. 3 new filling stations began operating, 54 were modernized and ecological and modernization works were performed at 10 depots. In Kazakhstan Alma Ata: the first well is drilled and the second one is finished in 2002.
In Iran the opening of a Petrom Representation in Teheran in order to promote the company's purposes on this market.
Greece: in December, the Sea Drilling Contract was signed with Kavala Oil, for drilling works on the ATLAS platform, in the Greek territorial water. Environment protection: Doljchim subsidiary obtained the environment license.
In September the Petrom shares were listed at Bucharest Stock Exchange. Eurobonds issue: in July, MPF approves the launching by SNP Petrom of Eurobonds issues and Luxembourg Sto
ck Exchange approves the listing.

2002 - January 2002 - externalization of the mechanical and energetic activities out of Petromar Constanta branch (785 employees). March - externalization of Petroserv branch who was taken over by SC Petrom Service SA along with its personnel. April - beginning of the privatization process thorugh the publishing in the Romanian and international press of the announcement for the selection of the consultant and 12 banks submitted their interest letters; seven of them were selected. August - signing the agreement with EBRD for the amount of USD 150 mn which represented a pre-privatization syndicate loan. October - improvement of the Fitch rating of the debts that are not guaranteed by the state and the eurobonds issue of EUR 125 mn from B+ to BB. November - the Board of Directors approves the purchase of 19 lands in Yougoslavia with the purpose of building filling stations. December - nominalization of the privatization consultant namely the syndicate formed of Credit Suisse Boston and ING Barings Limited.

2003 - January - Initiation of the first milestone of the privatization process. Preparation for the privatization. February - divestment of the maintenance activities of Arpechim and Petrobrazi activities (2,630 employees - 1,598 from Arpechim and 1,032 from Petrobrazi. May - End of the first milestone of the privatization process, resulting in a feasibility study of the privatization including the company assessment, presentation of the privatization options and plan. August - End of the first stage of the privatization process along with the approval of the privatization strategy of SNP Petrom as per the Government Act no 924 of August 14, 2003 followed by the press announcement for the submission of interest letters on August 26, 2003 September - Submission of interest letters by 15 companies and consortiums interested by the take-over of the company out of which 11 companies were selected as they met the qualification criteria. October - Distribution of the Presentation File and access to the Data Room by the potential 11 buyers. November - Submission of preliminary offers by 7 of the 11 selected companies.

2004 - Submission of engaging offers. Selection of companies OMV, Occidental and MOL for negotiations. Acquisition of 51% of the share capital by OMV Austria with the biggest privatization deal in Romania so far.

2005 - Petrom's structure was reorganized into six divisions, out of which three are operational ones Launching the new concept "Full Agency" New products launched on the market: Top Premium 99+ and Top Nordic Diesel Petrom has started three programs of 3D seismic exploration in Romania Petrom is helping the victims of the floods with over EUR 1 300 000. Petrom anounces the new prices policy. Petrom launches the first PetromV filling station. Petrom won the exploration licenses for three new blocks in Romania.

2006 - In January Petrom purchased OMV's operations in Romania, Bulgaria and Serbia and Montenegro. As a result of the transaction, 178 OMV stations operating at the highest standards belong now to Petrom and will continue to operate under the OMV brand.

Major shareholders

Shareholder

Shares

Percent

OMV AKTIENGESELLSCHAFT

28,894,467,414

51.01%

A.V.A.S

11,690,694,418

20.63%

FONDUL PROPRIETATEA S.A.

11,391,130,186

20.11%

OTHER SHAREHOLDERS

4,667,816,317

8.23%

  

Total No. of Shares

56,644,108,335

Nominal Value

0.1000

Share Capital

5,664,410,833.50

 

Annual financial information (Key financials)

 

2006(RON)

2005(RON)

2004(RON)*

 Fixed assets - Total  

  13,092,904,752.00

  10,609,243,769.00

  9,589,400,247.40

 Current assets - Total  

  6,276,870,106.00

  7,131,081,628.00

  6,023,749,546.90

 

 

 

 

 Debtors - due within one year  

  2,257,229,755.00

  2,230,916,538.00

  1,257,378,016.80

 Current assets/Net current liabilities  

  4,016,232,131.00

  4,921,569,778.00

  4,772,078,118.50

 Total assets less current liabilities  

  17,100,585,546.00

  15,522,569,796.00

  14,353,542,129.80

 Debtors - due after more than one year  

  22,141,012.00

  34,900,751.00

  530,378,891.40

 Revenues in advance  

  101,676,497.00

  -

  58,597,213.70

 

 

 

 

 Subscribed paid up capital  

  5,664,410,834.00

  5,600,050,608.00

  5,600,050,607.80

 Shareholders equity - Total  

  12,324,704,630.00

  10,727,089,837.00

  9,392,111,257.40

 

 

 

 

 Total receivables  

  1,360,715,806.00

  -

  776,329,526.50

 Total liabilities  

  2,279,370,767.00

  -

  1,787,756,908.20

 

 

 

 

 Net turnover  

  13,078,308,815.00

  10,760,228,198.00

  8,687,896,678.80

 

 

 

 

 Operating income - Total  

  13,415,789,582.00

  10,973,183,377.00

  9,139,245,173.40

 Operating expenses - Total  

  10,638,401,293.00

  9,088,984,358.00

  9,720,395,285.10

 Operating result  

  2,777,388,289.00

  1,884,199,019.00

  -581,150,111.70

 

 

 

 

 Financial income - Total  

  517,245,405.00

  569,200,252.00

  393,200,678.20

 Financial expenses - Total  

  748,466,721.00

  769,976,063.00

  636,050,149.40

 Financial result  

  -231,221,316.00

  -200,775,811.00

  -242,849,471.20

 Current result  

  2,546,166,973.00

  1,683,423,208.00

  -823,999,582.90

 

 

 

 

 Extraordinary income  

  0.00

  0.00

  0.00

 Extraordinary expenses  

  0.00

  0.00

  0.00

 Extraordinary result  

  0.00

  0.00

  0.00

 

 

 

 

 Total revenues  

  13,933,034,987.00

  11,542,383,629.00

  9,532,445,851.60

 Total expenses  

  11,386,868,014.00

  9,858,960,421.00

  10,356,445,434.50

 

 

 

 

 Gross result  

  2,546,166,973.00

  1,683,423,208.00

  -823,999,582.90

 Net result  

  2,285,490,203.00

  1,416,422,558.00

  -973,677,328.20

 Result per share  

  -

  0.0300

  -

 

 

 

 

 Back payments - Total  

  68,783,827.00

  -

  -

 Back payments for suppliers - Total  

  68,777,408.00

  -

  -

 Back payments of liabilities to the social insurance budget  

  0.00

  -

  -

 Taxes which are not paid to the State budget upon payment date  

  0.00

  -

  -

 

 

 

 

 Average number of employees (only full time employees)  

  37649

  48445

  -