ButanGas Romania, one of the biggest players on the domesticliquefied petroleum gas (LPG) distribution market, expects 79m-euroturnover this year, up more than 20% from last year, though thecompany's forecast about the market trend are not highlyupbeat.
The company operating in Romania is part of ButanGas group, whichoperates on ten markets, being one of the few internationalbusinesses developed by a Romanian businessperson.
The group was founded in 1948 by Iosif Constantin Dragan, who diedin 2008. As early as 2001, Dragan ceded the management of thegroup's operations to his wife, Veronica Gusa, who is now anexecutive chairperson with ButanGas. Dragan is ranked as Romania'swealthiest woman, with a fortune Forbes Romania puts at 420-450meuros.
The company's representatives have two reasons to anticipate a risein ButanGas Romania's turnover this year, after it fell by around30% in 2009.
"We believe we'll be able to gain further market percentagesbecause smaller players are having trouble and have no solution butto close their businesses. Secondly, we expect oil prices to behigher this year than in 2008," explain the company'srepresentatives.
According to the above-quoted sources, in 2010 demand on the entiremarket will stabilise at the best after sold volumes fell by around8-10% in 2009.
According to ButanGas Romania representatives, the LPG market lastyear was worth around 330m euros and 445,000 tonnes were sold, withthe company holding a 16% market share.
Amid this negative background, the company's results alsocontracted, so that in late 2009 its turnover reached 64m euros,down around 30% from 2008.
As regards the direction of the LPG market this year, ButanGasRomania representatives believe sales stagnation would be the mostupbeat scenario.
"In 2010, the LPG market will witness a slight decrease of 3-4% orwill stabilise at the level of 2009 as no economic environmentimprovement is expected," the company's representatives say.
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