Conpet profits to rise one third

Conpet Ploiesti, the only transporter of crude oil through magistral pipes in Romania, has forecast profits for this year of 13 million RON, 33% more than in 2004, when the company made net profits of 9.78 million RON (2.4 million euros). “Based on all the factors we take into consideration, this level of growth will continue in 2006 as well,” said Liviu Ilasi, chairman of the management board and general manager of the company.

According to company officials, the estimate for this year does not include the cost of the transfer of crude oil transportation activities to Petrotrans.

At the start of May, Conpet lost part of the pipes it operated as the result of a government decision. At that time, the government appointed Petrotrans Pitesti as a licensed operator and leaser of the pipe system for the transportation of oil products, thereby cancelling an ordinance by the former Cabinet which saw Conpet take over the pipes from Petrotrans through a share capital raise. Both Conpet and Petrotrans are state-owned companies.

In the first half of the year, Conpet made net profits of 7.9m RON (2.17 million euros), 51.4% higher than for the corresponding period of the previous year. The higher gains were mainly due to the increase in crude oil imports.

“Paradoxically, although oil prices rose globally, Rompetrol, Petrom and RAFO have imported more this year,” explained Ilasi.

Conpet”s shareholders last week approved a cut in revenues and expenditures for the end of this year, following the handing back to Petrotrans of pipes used by Conpet for oil transport. stelian.vezentan@zf.ro