Petrom turnover comes to a standstill

For several years, the turnover of Romania’s largest oil company, SNP Petrom, has been unable to move past the two billion-dollar level. On the other hand, private operators are disclosing bigger profits and expansion plans, which are likely to overturn the Romanian oil industry hierarchies.
SNP Petrom’s 2003 spending and revenue budget points to more than 75,000 billion ROL ($2.01bn) in turnover and net profit revolving around 1,900 billion ROL ($50.9m).
The company expects this year’s turnover to stand at 67,603 billion ROL ($.198bn) and gross profit of 3,361 billion ROL ($98.8m).
Petrom last year logged turnover worth 55,906bn ROL ($1.92bn) and net profit of 2,717 billion ROL ($93.4m).
Rompetrol, the second-largest operator on the market, has revealed plans to become No 1 in several years, according to its chairman Dinu Patriciu. The group already controls one third of the market and this year aims to post $1bn turnover. Furthermore, the recent alliance with OMV has consolidated its position on the car fuel distribution market.
Russia’s largest oil group, LukOil is set to resume operations at its Ploiesti-based refinery – Petrotel, in which it will invest at least 60 million dollars. Lukoil also intends to double the number of its Romanian gas stations, from 100 at the end of this year to more than 200 next December.
However, SNP Petrom may see its turnover grow after privatisation, which is expected to occur in 2003, most likely by selling at least 51% in the company to a strategic investor. The Romanian State is assisted in this transaction by a consortium comprised of investment banks Credit Suisse First Boston and ING Bank, and by law firm Linklaters.
The consortium is awaiting the Government’s approval to start working on the privatisation strategy. According to the International Monetary Fund agreement, the strategy should be completed by yearend. The Executive has appointed an intergovernmental commission to deal with Petrom privatisation, headed by Industry minister Dan Ioan Popescu. The company’s general manager Ion Popa is among the commission’s members.