WIEE Romania, the domestic unit of WIEE, ended last year with losses, posting a minus of 0.4 million euros. In 2004, the company had reported net income standing at 22,000 euros.
"The losses were triggered by costs related to the gas storage the company handled in the last quarter of last year. These quantities are going to be resold in 2006. Another factor that had a negative impact over last year''s financial figures was the RON/USD exchange rate, particularly in late 2005," Ion Burcea, a commercial manager with WIEE Romania, commented for ZF.
For this year, Burcea estimates the company will move back into the black and reach a level of 1.5 million dollars (one million euros). "The effects of last year''s costs will be visible in this year''s profits," Burcea also said.
The company in 2005 derived turnover worth 19.7m euros, up 18m euros on 2004.
"The higher turnover is due to our having raised the quantity of sold gas and the number of customers. Moreover, the ascending trend followed last year by gas prices was a significant advantage for companies operating in this sector," said the WIEE Romania official.
WIEE is a joint venture between Germany''s Wintershall oil and gas company and Russian giant Gazprom.
Wintershall and Gazprom carry sale operations on the domestic market through three companies, namely WIEE, Wirom Gas and WIEE Romania.
Wintershall''s domestic operations were reorganised as early as last year, when Wirom Gas set up local private distribution firms in four locations in southern Romania: Turnu Magurele, Alexandria, Oltenita and Giurgiu.
Wirom Gas has an investment plan worth 17m dollars (12.6m euros) for the four private gas distribution units, aiming to add as many as 100,000 households and major industrial consumers to its portfolio by 2007. The main shareholders in Wirom Gas are WIEE Zug (a joint venture between Wintershall and Gazprom), holding the majority stake, and Distrigaz Sud, a company acquired by Gaz de France. Conef Bucharest, part of the Alro group, has strengthened its position on the market of gas importers over recent years.
Conef has recently signed a contract with Gazprom, related to the extension of the gas delivery agreement for the domestic company over the next 25 years. Conef will deliver over 50 billion cubic metres of gas, meaning some 2 billion cubic metres per annum.
Conef and Wintershall dominate gas imports from Russia, now covering 40% of domestic consumption.
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