ButanGas budgets 20% turnover growth

ButanGas Romania, one of the biggest players on the domestic liquefied petroleum gas (LPG) distribution market, expects 79m-euro turnover this year, up more than 20% from last year, though the company’s forecast about the market trend are not highly upbeat.
The company operating in Romania is part of ButanGas group, which operates on ten markets, being one of the few international businesses developed by a Romanian businessperson.
The group was founded in 1948 by Iosif Constantin Dragan, who died in 2008. As early as 2001, Dragan ceded the management of the group’s operations to his wife, Veronica Gusa, who is now an executive chairperson with ButanGas. Dragan is ranked as Romania’s wealthiest woman, with a fortune Forbes Romania puts at 420-450m euros.
The company’s representatives have two reasons to anticipate a rise in ButanGas Romania’s turnover this year, after it fell by around 30% in 2009.
“We believe we’ll be able to gain further market percentages because smaller players are having trouble and have no solution but to close their businesses. Secondly, we expect oil prices to be higher this year than in 2008,” explain the company’s representatives.
According to the above-quoted sources, in 2010 demand on the entire market will stabilise at the best after sold volumes fell by around 8-10% in 2009.
According to ButanGas Romania representatives, the LPG market last year was worth around 330m euros and 445,000 tonnes were sold, with the company holding a 16% market share.
Amid this negative background, the company’s results also contracted, so that in late 2009 its turnover reached 64m euros, down around 30% from 2008.
As regards the direction of the LPG market this year, ButanGas Romania representatives believe sales stagnation would be the most upbeat scenario.
“In 2010, the LPG market will witness a slight decrease of 3-4% or will stabilise at the level of 2009 as no economic environment improvement is expected,” the company’s representatives say.