Rompetrol expects $1.6bn this year

Private oil group Rompetrol, run by businessman Dinu Patriciu crossed the line to the black in 2003 and logged preliminary net income in excess of $30 million, compared to the about $24 million losses in the year before. Rompetrol concluded last year with $1.2bn turnover, up 20% from 2002, as a result of a national and regional consolidation and expansion process. Its strategy for 2004 is to attain $1.6bn turnover, by consolidating its position as a regional player.

“One of the growth pillars was expanding the distribution network comprised of warehouses and gas stations throughout the region. We also witnessed the technological progress of the group’s two refineries, due to the investments we made,” Dinu Patriciu, Rompetrol Group president told Ziarul Financiar.

Rompetrol operates two refineries on the Romanian market, Petromidia and Vega Ploiesti, a network of warehouses and 192 gas stations (70 of which it owns), and is also involved in oil exploration and production, as well as petrochemical business.

The group run by Dinu Patriciu settled the issue of Petromidia’s historical debts it undertook upon privatisation by having them swapped for bonds. The bonds were issued for $603 million at the end of 2003 and Rompetrol is to repurchase them from the Finance Ministry within seven years. The group accounts for 32% of the market of end oil products in Romania, according to its own estimates.

Rompetrol kept growing abroad, by opening new fuel warehouses and gas stations, all of which having Petromidia as supplier. The group is therefore operating in Ukraine, the Republic of Moldova, Greece, Turkey, the former Yugoslavian states or Bulgaria, where it managed to grab hold of a 12% slice of the retail market in only one year.

Three of Rompetrol Group’s companies are listed on the capital market. Rompetrol Rafinare Petromidia (the Petromidia Refinery i.e.) last year was withdrawn from RASDAQ to be moved on the Bucharest Stock Exchange and had reached $164 million capitalisation by that time.

Rompetrol SA (the Vega Refinery) totals $46.6 million capitalisation on RASDAQ, calculated at an 850 ROL/share price. Oil service operator Rompetrol Well Services sees capitalisation on the BSE at $5.7 million if calculated at a 1,980 ROL quote. As for disbursement of dividends, Patriciu says this is an issue up for debate by Rompetrol SA General Meeting of Shareholders, while the other two companies will focus on investments this year.

Rompetrol is currently employing 5,600 people and its annual productivity rate reaches $220,000/employee.
adrian.mirsanu@zf.ro