Petrom and Rompetrol Rafinare expect major turnover declines in 2009

Petrom Bucuresti (SNP), the largest Romanian company, has budgeted a 33% business decline for 2009, to 11.1 billion RON (2.7 billion euros), whilst Rompetrol Rafinare Constanta (RRC), the operator of Petromidia refinery, expects a 43% turnover decline, to 1.73 billion dollars (around 1.25 billion euros). Although so far Petrom’s main financial indicators have each year performed better than budgeted, the company says it has a realistic budget this year, based on the current economic situation. The company expects its petroleum and gas extraction activity to be reduced amid a slowdown in exploration and production activities, and believes it will see a decline in demand for petroleum products given the unfavourable economic context. The company believes it will, however, post a net profit similar to last year’s, of 1.11 billion RON, compared with the 1.022 billion RON recorded in 2008.