Romanian Daily Report - 21 January

In this issue: Transgaz, OMV Petrom – Gas consumption down 14.3% in October and 19% in November ; Teraplast – change of General Manager ; Oltchim’s losses for 2012 amounted to RON 384 mn

Transgaz, OMV Petrom – Gas consumption down 14.3% in October and 19% in November

According to two releases from the Regulatory Authority in the Energy Sector (ANRE), gas consumption dropped by 14.3% yoy in October and 19% in November. The decline came from weaker consumption of households and industrial users, including energy producers, though chemical producers registered higher volumes consumed. Part of the fall can be explained by the warmer weather, and part is probably due to weakening industrial growth. The news came as a surprise for us as Petrom started in August commercial operations at its gas power plant and we were expecting the plant consumption to lift total volumes consumed.

We expect the weaker consumption to have a marginal negative influence on Petrom, lower volumes of gas sold impacting its profit from the Gas and Power segment, and a negative influence on Transgaz, on an expected similar drop in quantities transported.


Teraplast – change of General Manager

In a release to the Bucharest Stock Exchange (BVB), Teraplast (TRP) announced that starting with February 1st, 2013, Mr. Traian Simion will replace Mr. Stefan Bucataru as General Manager of Teraplast. Mr. Bucataru, with expertise in restructuring and management consulting, has coordinated a restructuring process for TRP for the last 18 months. TRP focused more on segments like PVC profiles and doors and windows segment, while discontinuing other business lines (terracotta tiles) and selling some non-core assets.  Mr. Simion, the newly elected CEO, was the CEO of Albalact between 2007-2010, while previously he was the commercial director of the company. According to the release, Mr. Simion will continue the restructuring program. At this moment we consider the news as neutral, while we wait for more specific details regarding the company’s new strategy.


Oltchim’s losses for 2012 amounted to RON 384 mn

According to media, citing government’s documents, the troubled chemical producer Oltchim (OLT) has posted for 2012 net losses of RON 384 mn, wider than those incurred in 2011 which amounted to RON 278 mn. This implies that in 4Q 12, the company’s bottom line was a negative RON 76 mn.