MOL looking into Petrom opportunity

Hungarian oil group MOL is considering opportunities for acquisitions, alliances or partnerships on the Romanian market and in the entire Central and Eastern Europe. The privatisation of the largest Romanian company SNP Petrom might be in the cards, too.
Commenting on the privatisation of Petrom, scheduled by the Romanian officials for next year, Zsolt Hernadi, MOL Group chairman and CEO told Ziarul Financiar: “We want to be open to any kind of acquisition, alliance or partnership, likely to generate shareholder value. Romania is a very interesting market to MOL. If the necessary structure for a business opportunity is provided, we will definitely be there.”
Doubling the number of gas stations on the Romanian market over the next three years is yet another target of the Hungarian group. The investment is estimated to amount to some $40-$50 million according to the specialists.
“The expansion of the gas station network in Romania by nearly 40 units is one of our targets, with the network set to cover the entire country. However, I have to add we will be using our resources in the region in optimal conditions, so that we will go only where the biggest opportunities are,” Hernadi added.
MOL’s investment plan totals approximately $2bn until 2005, $300 million of which are aimed at the retail segment (fuel distribution).
The group’s expansion strategy for the Romanian market does not rule out the possibility of buying gas stations from other operators on the market, Hernadi says. MOL’s interests in Romania target oil and natural gas operations, those on the retail market especially.
MOL’s expansion strategy in the region over the next three years is based on a four-pillar financial package: some $175 million investments in making the activity efficient, an about $2bn CAPEX (acquisitions exclusive), as well as a ROACE target of 17% and EBITDA of $1bn by the end of 2005. MOL’s management and Board of Directors feel the best way to add value to MOL’s shares is continuing the regional expansion along with ensuring efficiency and stability of the company through a balanced business portfolio and proper risk management.