OMV PETROM’ S1 NUMBERS – AN ECON 101 LESSON FOR GOV’T
OMV Petrom announced a net profit of 1.21 billion lei in the first half of this year, nearly three times higher than in the first half of last year. Three factors have contributed to this result: the increase in the reference price for crude oil (+32%), the improvement of refining margins (+8%) on a 95% refinery use rate, and higher demand for fuel, which allowed for an increase in sales (6.4% in retail and 12% in the commercial segment).
ANRE: HIGH PRICES IN DAM ARE CAUSED BY LOW HYDRAULICITY AND EXTREME TEMPERATURES
Top management of the National Regulatory Authority for Energy have made available to the press an analysis regarding the evolution of the electricity market this year, a document that it claims to have transmitted since last Friday to all the institutions with responsibilities in the sector, including the Ministry of Energy, the Government of Romania, the specialized commissions of the Parliament and the Competition Council. ANRE’s initiative comes shortly after the comments and accusations that occurred at the Executive meeting on Wednesday, when Prime Minister Mihai Tudose announced that he would ask the Parliament to investigate the Authority regarding the situation in the energy system and the increased prices for electricity on the Day Ahead Market (DAM). ANRE’s position
TRANSGAZ, INTERESTED TO BID FOR 66% OF THE GREEK NATURAL GAS TRANSMISSION SYSTEM OPERATOR DESFA
In a consortium with France’s natural gas transmission system operator GRTgaz, Transgaz expressed its interest for a majority stake in Greece’s natural gas transmission system operator DESFA. Media in Greece announced that representatives of Hellenic Republic Asset Development Fund (TAIPED) will check that the expressions of interest are valid. This is expected to take two to three weeks because of the summer vacations. The privatization agency’s board is then due to approve the investors so they can pass on to the second phase of the tender, when they will gain access to DESFA’s virtual data room and have the right to submit a binding offer.
KMGI TO EXPAND FUEL STATION NETWORK IN ROMANIA AND BULGARIA
Oil refiner KMG International (KMGI) wants to open more petrol stations in Romania and Bulgaria and is on the lookout for acquisitions in central Europe once its legal problems are resolved, a company executive told Reuters.
INDUSTRIAL PRODUCTION PRICES DROP IN JUNE BY 0.1 PCT, UP 2.5 PCT Y-O-Y
The overall industrial production prices (on the domestic and foreign markets) decreased in June by 0.1 pct as compared to May 2017, while compared to the same period in 2016 they increased by 2.5 pct, according to data centralised by the National Institute of Statistics (INS).
ELECTRICITY PRICES ARE RISING, LET’S GET USED TO THIS!
The first days of August brought new maximum levels for electricity prices on the spot market (DAM – Day Ahead Market) – 570 lei / MWh, with an average price of 550 lei / MWh OPCOM for Friday, August 4th. Compared to August 1st, the average price on DAM increased, in three days, with about 67%, while over the same period last year, prices are almost three times higher.
FOUR OF ROMGAZ ADMINISTRATOR MANDATES TO BE EXTENDED, YET ANOTHER INTERIM
The shareholders of the gas producer Romgaz, one of the most profitable state-owned companies, want to extend the temporary administrator mandates for Gabriel Gheorghe, Bogdan-Nicolae Stan, Alexandru Chirilă and Virgil Metea, two months after their expiration, the subject being on the agenda of the AGA meeting that will take place on September 7th.
OFFICIALS WANTING TO LIST 10PCT-STAKE IN HIDROELECTRICA FOR STARTERS, WAITING FOR BROKER’S CONCLUSIONS
Officials want to float a 10pct-stake in Hidroelectrica for starters, and then a further 5pct-stake, but to start the process the conclusions of the brokering consortium are expected, Energy Minister Toma Petcu told a news conference on Friday.
EC AND TRANSGAZ ANNOUNCE THAT BRUA WILL NOT BE AFFECTED BY HUNGARY’S BLOCKAGE
Following Hungary’s decision not to participate in the construction of the BRUA gas pipeline, the Romanian national operator Transgaz announced that the project remains standing. In its turn, the European Commission has maintained its commitment to support the BRUA gas pipeline, considering that Hungary’s proposal does not affect the general objective of creating alternatives. The Commission has urged the transport operators in Hungary, Romania and Austria and national regulators to quickly discuss the proposals and adopt any changes to the concept of infrastructure to avoid any delay and ensure that the new revised concept is in line with the market needs.
THE PETROM-TRANSEASTERN WIND TRANSACTION OFFERS THE MARKET A VERY LOW REFERENCE PRICE – EXPERT
Transeastern has offered Petrom for the 45 MW Dorobantu Park, a price of nearly 511.000 euros per MW, after investors in wind farms marked capital expenditures of about 1,3-1,5 million euros per MW of installed capacity during the boom period. The 23 million euro transaction is part of the line drawn by Petrom at the beginning of the year, but it is still considered by the specialists as “guilty” for setting a reference price far too low for future transactions.