Petrom expects less expensive loans

The decision of rating agency Fitch IBCA to upgrade SNP Petrom rating from stable to positive will trigger a decrease in interest rates for the future loans the company is planning to obtain on the international capital market, Petrom management sources said.

“While a rate cut is ruled out for the loan obtained in September through the euro bond issue, we are certain we will be able to obtain much lower rates in the future, whether it is about bonds or regular credits,” the above-quoted sources said.

The positive outlook for SNP ratings will also enable the company to attract a serious investor for the privatisation process that is to be launched next year. “It is certain that a serious investor can be found for privatisation under these circumstances,” the above-quoted sources stated. Fitch maintained the ‘B’ rating for SNP foreign currency credits.

In September, Petrom launched a bond issue worth 125 million euros on the international capital markets, for an 11.625% interest rate.

Petrom posted losses standing at 19.61 billion ROL for the first nine months of the year (700,000 dollars), after having registered profit worth 30 million dollars after the first half of 2001.

According to company management, the losses will be recovered by the end of the year. The company last year boasted net profit worth 98 million dollars.

Losses were grounded on the oil price increases on the international market, which strongly affected the company, which resorts to massive imports but the fuel price is controlled by the state.

The price increases for gasoline and diesel oil could not cover the oil price and the ROL depreciation against the euro.