Agip Romania to break even

Agip Romania, the local branch held by the Italian oil group Eni, hopes to break even this year, as it forecasts operating profit worth 1.5 million euros and 40 million euros in turnover. This would be the first profitable year for the Italian company in Romania, following four years of losses.

Just like the other players on the Romanian oil market, the Italian operator last year reported losses, amounting to 400,000 euros, whereas turnover was worth 39 million euros.

Antonio Cambiotti, Agip Romania chairman, says the company had posted operating profit worth 1.1 million euros in 2002 as well, which shows the operating performance, but then it saw negative results, following tax payments and depreciation.

“Agip Romania reported sales amounting to some 30 million euros in nine months this year, from 27 million euros in the year-ago interval. The sales average per gas station is one of the best on the market. For this year, we target 40 million euros in turnover, operating profit amounting to 1.5 million euros and we plan to eliminate losses,” Antonio Cambiotti said.

Agip Romania, which employs about 220 people, operates a network comprising 20 gas stations (16 are owned, 2 franchised, 2 rented), down from 22 last year (as it sold one to OMV and another one to Petrom).

Several other companies in the business also hope to close the year in the black, as the latest reports from Shell (for five months) and Lukoil (for nine months) point to profitability. International companies operating on the Romanian retail market have repeatedly blamed the market for not being deregulated and the leading state-owned company Petrom for not relating its prices to the international oil quotations. Difficult market conditions made the local branches controlled by the European giants, such as Shell and Eni, freeze any further expansion of their own networks, waiting for Petrom’s privatisation when the market would be deregulated. adrian.mirsanu@zf.ro