Rompetrol, the petroleum group run by businessman Dinu Patriciu, could double turnover on the French market through Dyneff, France's largest independent petroleum operator, which the company acquired at the beginning of 2006.
"I think Dyneff has the potential to double its turnover on medium term (3-5 years), compared with the around 3 billion dollars (1.8 billion euros) seen last year. The French market is undergoing major changes, which could lead to a reduction in the market share held by super and hypermarkets on the fuel distribution segment. Since most such companies are considering giving up this segment, which does not bring in any additional profit, this could provide a growth opportunity for us," says Andre Naniche, COO (Chief Operating Officer) of the Rompetrol Group.
According to the most recent statements from Rompetrol representatives, 35% of the French fuel retail market is in the hands of hypermarkets. Their policy is to secure as many customers as possible, by pushing profit margins derived from fuel retail close to 0%. This strategy also affects other petroleum companies present on the market, given that they can no longer sacrifice their profit margins in order to have competitive prices that can match those of fuels sold in hypermarket-based petrol stations. If the hypermarkets exit this segment, which is unprofitable for them, a huge market will be created for petroleum companies that operate in France, with Rompetrol being one of them.
This year, Rompetrol's business on the French market will amount to around 3.7 billion dollars, while, at a group level, Rompetrol forecasts turnover worth up to 12 billion dollars, significantly higher than the 7 billion dollars estimated for the end of 2007. On medium term, estimates made by representatives of the group point to turnover worth 30-40 billion dollars, with acquisitions in Western Europe to act as the company's growth driver.
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