Romgaz, the only natural gas producer controlled by Romania’s government, posted over RON4 billion in revenue last year, up about 13% on 2010, while the profit reached RON762 million. The profit margin at which Romgaz operated in 2011, calculated as a ratio of the net income and the revenue was 18.8%, even higher than Petrom’s, which stood at 16.6%. With this result, Romgaz became more profitable than oil giants like ExxonMobil, Shell and BP.
One of the explanations that apply in this case is that the Romanian government charges very low royalties for the oil and gas production. The government is getting ready to list 10% of the company on the stock market this year.
The energy complexes in Oltenia were the top performers in terms of growth. Complexul Energetic Turceni posted more than RON2 billion in revenue, up 92% on 2010, which means the highest revenues ever attained by the company. Complexul Energetic Rovinari, the second largest thermoelectric power plant in Oltenia made RON1.4 billion, 83% more than in 2010, while Complexul Energetic Craiova posted RON1.3 billion, up 26%.
All three thermoelectric plants were established as Termoelectrica spin-offs in 2004, but had never reached the revenue levels they did in 2011. The growth of the three power producers came as a result of the severe drought of last year, which hurt the business of hydropower producer Hidroelectrica, which is still applying the force majeure clause in its direct energy sale contracts. It was the three thermoelectric plants that kept the lights on in Romania at times, when Hidroelectrica was unable to generate even as much power as the wind farms generated, despite being the country’s largest energy producer.
The Competition Council at the end of last week approved the establishment of Complexul Energetic Oltenia, created by the merger of Complexul Energetic Turceni, Complexul Energetic Rovinari, Complexul Energetic Craiova and Societatea Nationala a Lignitului Oltenia (National Lignite Company Oltenia – SNLO).
This is part of the latest plan to reorganize Romania’s energy system, after the strategy to create a national energy company followed by the plan to create two energy giants failed. There will be one thermoelectric power company other than Complexul Energetic Oltenia, which will comprise the viable mines in the Compania Nationala a Huilei (National Bituminous Coal Company – CNH) and the Paroseni and Mintia thermoelectric power plants (Western Romania). Both newly created companies will be put up for sale, as agreed upon with the International Monetary Fund.
Maybe the worst performance last year was Hidroelectrica’s as its revenue and profit were severely affected by the drought. After a very good 2010, when profit went up to almost EUR70 million, six times the 2009 profit, in 2011, it posted a mere RON15.7 million (EUR3.6 million) income, almost 20 times lower than the year before. Revenue, too, was 10% lower in 2011 than in 2010. The government is expected to sell 10% in Hidroelectrica on the stock market this year, according to the latest official statements. (EUR1=RON4.3535)
(English version by Loredana Frățilă-Cristescu)
| No. | Company | 2011 revenue (preliminary) | 2010 revenue | Variation (%) |
| 1 | Romgaz* | 4,050.0 | 3,574.2 | 1.13 |
| 2 | Hidroelectrica | 2,943.3 | 3,273.7 | 0.90 |
| 3 | Transelectrica | 2,716.2 | 2,545.7 | 1.07 |
| 4 | Complexul Energetic Turceni | 2,008.6 | 1,043.7 | 1.92 |
| 5 | Nuclearelectrica | 1,613.7 | 1,514.7 | 1.07 |
| 6 | Oltchim | 1,567.6 | 1,309.5 | 1.20 |
| 7 | Transgaz | 1,466.0 | 1,312.9 | 1.12 |
| 8 | Complexul Energetic Rovinari | 1,452.3 | 794.6 | 1.83 |
| 9 | Complexul Energetic Craiova | 1,384.9 | 1,097.8 | 1.26 |
| 10 | Electrica | 1,359.5 | 1,022.4 | 1.33 |
| 11 | Societatea Nationala a Lignitului Oltenia | 1,140.9 | 901.0 | 1.27 |
| 12 | Termoelectrica | 542.9 | 584.5 | 0.93 |
| 13 | Compania Nationala a Huilei | 480.4 | 663.8 | 0.72 |
| 14 | Conpet | 367.9 | 339.7 | 1.08 |
| 15 | Oil Terminal | 118.2 | 132.2 | 0.89 |
| Total | 23,212.4 | 20,110.4 | 1.15 |