This is not the only business hurt by the oil price decline. The major oil producers slashed budgets, with OMV Petrom deciding to cut investments by 30% in Romania. Moreover, service providers and equipment suppliers saw their projects cancelled or frozen and some of them had to file for insolvency, such as Dafora and Condmag, both companies of businessman Gheorghe Calburean.
Oil was trading at $45 on Tuesday, while in June 2014 it stood at $115.
“We expect revenue to reach about $300 million this year. Postponement or cancellation of a number of projects, caused by the drop in the oil price led to a dramatic decline in the number of drilling projects, because they are no longer economically viable for lease holders,” says Radu Petrescu, communication manager of Upetrom, the group held by Comanescu, which includes GSP.
GSP revenue stood at $384 million last year, according to IFRS standards.
(English version by Loredana Fratila-Cristescu)