Agip to spend 36m euros to double market share

Agip Romania, the domestic unit of Eni petroleum giant, the biggest petroleum corporation in Romania at the moment, is tackling the domestic market with an investment plan worth 36 million euros in an attempt to double its market share and derive an annual turnover worth 90 million euros, says Nicola Meuli, the general manager of Agip Romania.
“Agip Romania has a highly ambitious plan for the next four years that will be achieved by following two strategic lines: further investments and the acquisition of some already existing stations,” says Nicola Meuli.
After keeping a low profile for years, Agip’s offensive will start in 2007.
Meuli, 41, took over the management of Agip operations on the domestic market at the beginning of last November, replacing Paolo Mazza, another Italian who had managed the domestic branch since early in 2005.
“There’s an investment budget approved by shareholders for the next four years totalling 36 million euros. This budget will allow us to double Agip’s share of the domestic market and stake our presence in other regions of the country where the Agip brand is not yet operational,” says Meuli.
In fact, this is Meuli’s first objective since he took office: raising critical mass to secure the company’s stability.
At present, the company covers a market share of approximately 1% through the network of 26 filling stations it operates. Last year, Agip made the first move to expand its filling station network by taking over two stations from Fix Oil, a Cypriot-held company. As a result of the deal, Agip’s network now has 26 filling stations in total.
“Both my collaborators and me have a very clear and precise mission: expanding the Agip network, developing the other business lines of the company and achieving cost efficiency,” says Agip Romania manager. Last year, Agip generated a turnover worth some 75 million euros, up 32% against 2005.
“We expect 2007 turnover to reach about 90 million euros and income to improve considerably to some 2 million euros,” Meuli also stated.
Despite some information about the possible sale of Agip’s Romanian business, Meuli says such a step is not included in Eni’s plans for the domestic market.
“We have not received any bid and we are not planning to give up our activity in Romania. Our company is active in a European context and our objective is to provide our customers with a continuity of services, from the West to the East; from Constanta to Lisbon. This is why Agip’s presence in Romania has a strategic significance, especially as Romania is now part of the EU,” says Agip’s manager. According to Agip’s representative, Romania’s EU integration will bring about a series of changes at a global level and not only regarding the petroleum market.