Monday, May 3, 2010

Romania's Petrom may raise $900 mln in share issue

BUCHAREST, April 30 (Reuters) - Romanian oil and gas company Petrom may carry out a share issue worth up to 2.8 billion lei ($899 million) to ensure funds to maintain its investment programme, it said on Friday.

Petrom, majority owned by Austrian OMV, wants to diversify to fight a dramatic fall in upstream revenues and could pump funds into increasing the recovery rate of existing fields, boosting exploration and renewable energy.

Romania's largest listed company said it expected to invest about 6.9 billion lei this year, of which about 51 percent was targeted at exploration and production. The rest would be invested in gas and power, refining, marketing and general corporate uses.

The board's authorisation to increase share capital would expire once the proceeds reach 600 million euros ($799 million), calculated at the latest official leu/euro exchange rate , Petrom said.

Petrom shares were suspended from trade on Friday pending publication of the outcome of Thursday's shareholder meeting.

No comments: