Distrigaz Nord, the second largest state-owned natural gas distributor on the Romanian market, will invest about 17 million euros this year to upgrade 387 km of piping, as 40% of the company's distribution network is outdated.
Considering the current pace of investments by the company, the 6,920 km of obsolete network will be replaced as late as 2021, because Distrigaz Nord is facing a shortage of cash.
The state-owned distributor in 2003 derived preliminary net profit revolving around 5 million euros, amid turnover worth over 378 million euros, while both the total receivables and debts exceed 5,000 billion ROL (123 million euros) each.
The company, including 9,300 employees, is deemed as oversized by some of the investors that have submitted a bid for the main stake, namely German companies Wintershall and Ruhrgas, Russian giant Gazprom, Italian Enel company and the French Gaz de France.
"The company has improved the revenue collection rate, which reached 97%. The current volume of receivables revolves around 5,000 billion ROL (123 million euros), the company's main debtors being chemical plants and thermal power producers that emerged following Termoelectrica's restructuring. We do not hold any debts to the state budget. Distrigaz Nord has debts to suppliers worth 3,000 billion ROL (74 million euros), and total debts could exceed the volume of receivables," Virgil Metea, the company's general manager, told Ziarul Financiar.
The company's preliminary turnover for 2003 climbed to 14,200 billion ROL (378 million euros). Turnover increased 11% in euros as compared to 2002, amid a 60% hike in the tariffs for the population consumption.
The company currently operates an almost 17,300 km-network, supplying gas to over 1,030,000 customers in 20 counties in north, east and west Romania.
"Distribution network pipes are normally functional for 15 years and about 40% of the network Distrigaz Nord currently operates has exceeded that interval. For 2004, our investment programme is 80% aimed at the rehabilitation of pipes," says Virgil Metea. According to the company's general manager, more than half of the funds earmarked for investments would be secured from a loan worth 10-11 million euros to be contracted over the following period.
adrian.mirsanu@zf.ro
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