Romanian oil major Petrom's net profits decreased by 43% to 1.02 billion Romanian Lei last year, with losses of 1.26 billion lei in the last quarter of 2008. According to company representatives, the profit fall was caused by the adoption of litigation provisions and the decrease of the accounting value of the Arpechim refinery.

The company's revenues increased however by 36% to 16.75 billion Romanian lei as compared to 2007, due to the favorable oil price. The fourth quarter of the year was affected by the decrease of oil price and the supplementary provisions adopted. According to Petrom's General Director, Mariana Gheorghe, for the first time since its privatization, the company registered an operational loss of 1.2 billion Lei in Q4 2008, compared to 332 million Lei in 2007.

Gheorghe declared that Arpechim refinery would continue to be a source of loss for the company, unless major modernization investments are undertaken. Petrom's financial director Renhard Pichler declared that last year there were many exceptional events that had a negative impact on the company's profits.

Petrom is currently involved in a litigation initiated by a number of current or former employees based on a different interpretation of a provision in the collective work contract on benefits. Romanian oil major Petrom's net profits decreased by 43% to 1.02 billion Romanian Lei last year, with losses of 1.26 billion lei in the last quarter of 2008. According to company representatives, the profit fall was caused by the adoption of litigation provisions and the decrease of the accounting value of the Arpechim refinery.

The company's revenues increased however by 36% to 16.75 billion Romanian lei as compared to 2007, due to the favorable oil price. The fourth quarter of the year was affected by the decrease of oil price and the supplementary pro