Lukoil (Russia), one of the world's largest petroleum companies, has overshot the one billion-euro mark in Romania, eight years from its entry on this market. The business of the Russian giant has more than tripled, to a consolidated level of 1.6 billion dollars (1.3 billion euros), due to the operation at full capacity of the Petrotel Ploiesti refinery, once its upgrading programme was completed, and to the expanding filling station and storage facility network.
The Russians have invested over half a billion dollars since they arrived on the market in 1998 and have a strong business portfolio, comprised of a large refinery, a network of about 300 filling stations and eight warehouses. Lukoil is therefore third on the Romanian petroleum market, after Petrom and Rompetrol.
The keystone was the Petrotel-Lukoil refinery, which posted a 1.07 billion-dollar (868 million-euro) turnover in 2005. The refinery's output stood at some 2.4 million tonnes, of which one third was exported to neighbouring markets.
At the same time, Lukoil Romania, the company that operates the network of filling stations and warehouses, doubled its business to 950 million dollars (766 million euros).
"In 2005, the downstream (distribution of petroleum products through petrol stations and warehouses) sector practically doubled its business volume compared with the previous year.
"The main factors behind this evolution were the increase in the sales volume, due to the positive trend of Romania's economic development and the increase in people's purchasing power, the stability of the domestic petroleum products market, which is no longer state-controlled following the privatisation of Petrom, the improving corporate governance and expenditure optimisation," Lukoil representatives commented for ZIARUL FINANCIAR.
The turnover target in the 2006 budget of Lukoil Romania is 1.35 billion dollars (over 1.1 billion euros).
"As for the Petrotel - Lukoil refinery, it was upgraded in November 2004, under a programme that entailed an investment volume in excess of 120 million dollars (97 million euros)," the Russian company officials add. However, according to the quoted sources, the refinery closed last year's balance sheet with 39.7 million-dollar (34 million-euro) losses, because of the "high prices of the crude oil the company buys, and following expenses for compliance with environmental standards."
On the other hand, the fuel distribution company made an operating income of 27.9 million dollars (22.5 million euros) during the same interval.
After buying the Petrotel refinery from the Romanian state in 1998, the Russian petroleum giant kept a low profile on the market until 2002, when it embarked on an aggressive expansion strategy.
At the end of 2001, Lukoil had the refinery non-operational, and its distribution network included about 20 filling stations, ranking last among corporate players.
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