In all, the top five oil companies in Romania posted RON35.8 billion revenue, relatively flat, but the cumulated profit rose by more than 30%. A potential explanation for the rise in profits might be the lower supply costs, which the companies did not pass into the fuel prices.
OMV Petrom Marketing, the company that supervises the 544 gas stations of Petrom remains the market leader, comfortably ahead of its rival on the second place.
The company posted RON14.1 billion revenue last year, 2.2% lower than in 2013. As the average gas and diesel price was relatively constant in 2014 compared with 2013, despite the ripples of the EUR0.07 excise duty introduced on April 1 or the oil price slump towards the end of the year, the decline in revenue can be explained by the decline in volumes.
Petrom’s annual report shows that the fuel retail business posted a worse decline than the overall market, 4.7% compared with the overall 2.6%, but commercial sales did better than the market, dropping by only 2.3% compared with 3.6%.
“Retail segment accounts for some 75% to 80% of the OMV Petrom Marketing sales, while the commercial segment accounts for the rest,” explained Radu Caprau, chairman of the board of directors of OMV Petrom Marketing. Those percentages are relatively constant, he added.
Considering that OMV Petrom Marketing only has 228 employees, the company is one of the most productive in the country, with each employee generating more than RON62 million sales last year. The explanation for the low number of employees despite a large gas station network is that even though Petrom is the owner of those stations they are run by independent dealers.
Rompetrol Downstream, the second largest competitor on the local oil market, posted growth of 9.2% in revenue, which can be explained by the higher volumes sold on the local market, following completion of the project to boost the refining capacity of Petromidia. What really stands out is the shift from a RON3.6 million loss in 2013 to a RON42.5 million net profit in 2014. The financial results of the distribution segment were largely because of the favorable conditions on the international market and the cost optimization program, Rompetrol’s 2014 report reads.
Number three, Lukoil Romania, cut losses and posted an almost 18% increase in revenue to RON5.86 billion, according to Trade Registry data. Not only its gas station business did well, but its Petrotel refinery in Ploiesti did, too. Petrotel Lukoil ended last year with RON308 million loss, one third of the 2013 loss, despite 2014 being one of the most difficult years it has experienced in Romania, due a to EUR230 million tax evasion scandal. Petrotel-Lukoil is the third largest refinery in Romania.
MOL Romania’s financial results changed very little and did not reflect its acquisition of the remaining 42 Agip stations operated by Italy’s ENI in Romania last summer. It posted RON4.35 billion revenue and RON94.3 million net profit in 2014.
Number five in this ranking, Oscar Downstream saw an almost 20% decline in revenue to RON1.9 billion in 2014, while net profit was up 16.8% to RON40.4 million.
(English version by Loredana Fratila-Cristescu)