E.ON Romania, the biggest integrated utilities group presentdomestically, poised to reach turnover of above one billion eurosthis year, says that while other economies, such as Germany's, areshowing signs of recovery, no improvement is being felt in Romaniain the absence of growth incentive programmes.
"Romania has ignored the crisis. We can see no improvement,"says Frank Hajdinjak, general manager of E.ON Romania. The Germanshave built their presence in Romania in the wake of twoprivatisation programmes in 2005, when they took control over theformer Distrigaz Nord and Electrica Moldova.
Hajdinjak says E.ON's gas deliveries dropped by 16% in the firstnine months of the year, while on the energy segment the companyhad 6% lower sales. "This year, 1,150 employees have left throughvoluntary departure programmes and we've come to 7,800 at the levelof E.ON Romania," says Hajdinjak. "We're trying to avoidredundancies as much as we can and we plan to not operate more than200 layoffs by yearend," he adds.
At the same time, the company slashed its 2009 investmentprogramme by 60% from the initial target, to 250m RON, with mostfunds targeting distribution networks. E.ON Romania has also cutthe investment budgets announced for 2012 both on the segment ofnatural gas, and on the electricity one. "We'll earmark 60-65meuros per year," Hajdinjak also specified.
Hajdinjak believes, though, some positive signals may emerge aslate as the second half of next year. Meanwhile, E.ON Romania isrestructuring further, so as to cope with falling sales, butespecially to become more efficient.
E.ON Romania calls for energy prices to be raised by 12% and gasprices by 15% from 1 January, 2010. The problem is these demandscould be bigger from several reasons. The main reason is theRomanian state's decision to extend the period during whichindustrial consumers are supplied with natural gas from domesticproduction. The state's decision also considerably expands the areaof consumers. As a result, there's less cheap gas for thepopulation, generating a need for bigger imports.
"(...)Whereas imported gas has accounted for 10-18% in the gasbasket, in the wake of this move the weight of imported gas may goas high as 50%. Moreover, the price of imported gas will rise by20% in January. All these will push gas prices beyond the 15%increase we ask for from 1 January," Hajdinjak says.
"(...)What is being said about keeping energy and gas pricesunchanged next year is a fairy tale (...)," he also says.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
