Money from listings of Electrica, Hidroelectrica stay with the companies


The main target of the delegate minister for Energy, Constantin Nita in 2014 is the listing of the three major energy companies Electrica, Hidroelectrica and Complexul Energetic Oltenia. “Three very important listings for us will follow this year: Electrica, Hidroelectrica and CEO. All the sums obtained from the listings will stay with the companies, for development. I very much rely on this kind of actions at the stock exchange, which can bring money to the company,” Nita said at ZF Power Summit 2014. The listings will be made in June, the minister explained, adding that “We have talks with consultants, who do not want the listing to be conducted the same month. We will discuss in April with the IMF and the World Bank.” Asked about how much money will the Romanian company gain from these operations, he answered: “A lot, hundreds of millions of EUR. This will certainly happen, I do not know when and I do not know how much, we do not know now.”
Regarding the lawsuits which Electrica is involved in, Nita mentioned that “the lawsuits of Electrica are in various stages. Regardless how they will end, Electrica will take money, not give it, hundreds of millions of EUR.” The minister also announced that Hidroelectrica will not split, as it has been rumoured recently, but inefficient assets should be separated from the company. The delegate minister for Energy said that he did not give up the plan of reorganising the energy production into companies that will use a mix of resources, not just one resources, as is the case now. Nita added that Romania completed the support scheme for the big consumers of energy, which includes an 85 percent reduction of payments for green certificates and a 20 percent diminishing of the cogeneration tax. He reminded that Romania has an energy potential much higher than any other neighbour state. According to the official, Chinese companies are interested to invest in projects from all the sectors of the Romanian economy. “The Chinese are coming, they are coming everywhere. We do not force them to come with money, we have projects,” Nita stated.
PwC: Shale gas will not turn Romania into an energy “El Dorado”
Romania will not become an “El Dorado” of energy even if it will produce shale gas and natural gas from the Black Sea, because conventional reserves diminish meanwhile, Vasile Iuga, managing partner PwC said in the same event. OMV Petrom and ExxonMobil discovered in 2012 a gas deposit in the Black Sea, but the extraction is not scheduled to begin before the end of this decade. Iuga added that the share held by imports will increase by 2018-2020, when production is expected to start in the Black Sea. “Before faring better, we might fare worse. (…) We must invest EUR 3-4 bln a year. This is why we need an energy strategy and the involvement of the state sector in this strategy,” Iuga explained. The government hopes to succeed drafting a new energy strategy this year, because the previous, dating since 2007, is obsolete now.
Fuel prices might increase by more than 8 pc
Fuel prices might increase by more than 8 percent, driven by the supplementary excise of 7 eurocents and the tax on special constructions, the vice-president of Rompetrol group, Catalin Dumitru said at the same event. According to the source, Rompetrol will pay USD 10 M to the state budget as tax on special constructions. Dumitru emphasised that this tax will be reflected in the end price at pump and will be paid by motorists, but he avoided saying what the concrete impact will be. Dumitru warned that, on short term, this price hike will result in a reduction of consumption. According to the CEO of MOL Romania, Kinga Daradics, the fuel tax announced by the Ponta government for the spring of this year will increase prices at pump, but it is hard to predict by how much, because of international factors. MOL Romania, part of Hungarian group MOL, last year sold in Romania 7 percent more fuel, lubricants and LPG than in 2012, driven by the expansion of its network of petrol stations, the company official mentioned. Daradics informed that diesel sales were predominant, up 8 percent against 2012, while petrol sales advanced by 6 percent. “We want a market share of 15 percent by 2015. We will have more than 150 petrol stations until the end of the year. For the last 2-3 years, we invested more than the profit obtained and we believe this trend will stay in place,” Daradics commented.
In Romania there is still place in the market for other fuel providers, and the structure of the market will modify, said Ileana Sorina Baltatu, deputy CEO of Nis Petrol, the Romanian branch of the homonymous Serbian company. “Romania is very important because we have the refinery in Pancevo (Serbia), we want to be a big player on this market. The motorisation degree is still small in Romania,” she added. NIS Petrol wants to double the number of petrol stations in Romania this year and, after 2015, it expects to have a market share of 10 percent. She added that the company will open three new stations in March.

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