Butan Gas, a major player on the LPG (liquefied petroleum gas) market, generated turnover worth 40m euros in the first eight months of the year, up 29% on last year.
The Romanian company is part of an international group, developed by Romanian businessman Iosif Constantin Dragan, one of the wealthiest entrepreneurs in the country.
"Turnover was boosted by the development of the trading segment, namely wholesale to the majority of players that operate on this market," stated Cristian Florea, the company's financial manager.
According to the latest Butan Gas estimates, turnover is forecast to hit 67 million euros this year, up 17 percent on last year, while net income is expected to amount to 2.7 million euros.
In addition, the company has earmarked investments worth 9.5 million euros for 2007.
The main players on the LPG market are Shell Gas Romania, Crimbo Gas and Rompetrol Gas.
In terms of acquisitions, the gas market has been one of the most dynamic sectors this year. Petrom acquired Shell Gas Romania, which marked the total exit from the market of one of the world's biggest oil companies.
The second deal, which has been anticipated for a long time, will be sealed at the end of this year and involves the sale of Crimbo Gas business, controlled by the Cristi Borcea (chairman of Dinamo football club) to SHV Dutch group, one of the largest players globally. The deal is worth approximately 40-50 million euros and introduces onto the market a player with strong financial power, which has the potential to sharpen competition on the segment.
The LPG market is worth approximately 320 million euros. According to the company estimates, Butan Gas controls around 21 percent of the market, Rompetrol Gas holds 7 percent, but counts on doubling this value within five years, whilst Crimbo Gas holds less than 10 percent of the market.
The market leader will be the company created after the takeover of Shell Gas by Petrom, which controls around 25%. The transaction is expected to receive the green light from the Competition Council by the end of this year.
The market is divided into three large segments: autogas, small bulk and gas cylinders.
The segment that boasts the fastest growth rate is autogas, whilst the gas cylinders segment continues to cope with a steady decline amid the expansion of natural gas networks. As for the small bulk sector, it continues to maintain a relatively constant size. The main factor that affects the market is the price of oil per barrel, which is directly linked to LPG prices.
The recent dramatic increases in oil prices are likely to harm operators on the LPG market as purchase prices increase.
Butan Gas
Generated turnover worth 40m euros in the first eight months of the year, up 29%
Turnover was pushed up in the wake development on the trading segment
Turnover is forecast to hit 67m euros this year, up 17% from last year, whilst net income is expected to amount to 2.7m euros
Controls around 21% of the market
Could be harmed by the recent increase in oil prices
Investments earmarked for this year stand at 9.5m euros
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
