Kinga Daradics, chief executive officer and country chairman of MOL Romania, says that while six months ago she thought the best scenario would be for the market to be flat this year, now that is close to becoming the base scenario.
Even though 2013 remains a year of turmoil in terms of economy, one can see the market improving, she added.
Many analysts say the market will never match consumption levels of 2008, but “in early 2013 we noticed a slight improvement of the fuel market in Romania. We also saw statistical data about first quarter economic growth, which could signal the start of an economic rebound,” Kinga Daradics said.
MOL Romania ended last year with EUR930.8 million revenue, up 25.7% on 2011. The company also posted EUR17 million net profit compared with EUR3.2 million loss in 2011, caused by a fine from the Competition Council in a case involving all the major oil companies in Romania.
Oil companies generally posted higher revenue last year even though fuel demand dropped. That was mainly because of the rise in pump prices. In MOL’s case, the expansion of the network by seven filling stations in which it invested EUR7 million last year helped, too.
MOL has 138 gas stations and 13% market share after having opened three more gas stations since the beginning of 2013.
Fuel retail sales volume went up 5% in the first quarter compared with the year-ago period, leading to an increase in market share to more than 13%, said MOL Romania’s CEO.
The company has recently completed the first phase of the EUR10 million investment in an oil product terminal in Giurgiu (southern Romania by the Danube River), whose current storage capacity is 3,000 tons of diesel.
When completed, the terminal will have a capacity of 7,000 cubic meters and will be used for the expansion of the distribution network and the wholesale business on long term. MOL’s goal is to reach 15% market share by 2015.
(English version by Loredana Fratila-Cristescu)