Agip Romania, the domestic branch of Italy”s Eni oil giant, at the end of last year hit net income worth 1.22m euros, double the value reached in 2004.
Amid the opening of the Romanian market in 2005 and rising oil prices internationally, Agip network derived profit for the third year in a row. The company”s turnover leapt by 26% from the level reported in 2004, to a value of approximately 57 million euros. The company”s representatives chose not to comment on last year”s figures.
Last year was one of the best for companies operating in the oil industry.
According to some estimates, the cumulated income posted by oil companies operating on the domestic market last year was close to 500 million euros, a value that exceeded the most optimistic of expectations, as most operators had ended previous fiscal years with losses.
The privatisation of the largest Romanian company, Petrom, which became part of the Austrian OMV group”s portfolio, set the pace for market liberalisation. Thus, instead of subsidised prices for oil products, the market started reflecting the real prices of oil.
This year, though, the profit margin has shrunk for refineries and for petrol station networks, as prices of oil products did not the rise in accordance with the rise in the oil barrel price.
Growing global demand, heightened by the effects of hurricane Katrina on US companies, last summer took the crude oil barrel price to unprecedented levels, which showed in the profits of the oil companies.
In this context, petrol stations have turned into a profitable business since early last year, after Austria”s OMV set a new policy related to prices at the pump at Petrom, depending on international quotations of oil products and the domestic competition environment.
Turnover witnessed by all the players on this market last year topped 7 billion euros.
Recently, Agip has announced it launched a development plan for its own network, as part of a strategy to boost Eni”s downstream activities in Europe. Thus, the company has finalised the acquisition of two filling stations in Bucharest from Fix Oil company, which belonged to T.I.S. Investment Limited of Cyprus. The investment came to 3.76 million euros, of which 3.2 million euros accounted for the asset acquisition price, with the remainder going towards rebranding and technical upgrades.
Moreover, Agip has decided to build a station in Sebes, with investments set to exceed one million euros. The land the new station will be built on will cost the Italians 180,000 euros, to which a technical investment worth no higher than 860,000 will be added. In the wake of these acquisitions, the network of petrol stations operated under Agip brand will reach 26 outlets.
Agip Romania
* Derived profit for the third consecutive year amid the liberalisation of the Romanian market and rising oil prices internationally
* Last year saw turnover climb by 26% from 2004, to about 57m euros, while net income stood at 1.22m euros
* Finalised the acquisition of two stations in Bucharest from Fix Oil, with investments standing at 3.76m euros
* Decided to build a station in Sebes, investing over 1m euros.
roxana.petrescu@zf.ro