Although the local fuel distribution market is not facing lower consumption, as happened on developed markets, including the U.S. and France, local retailers have higher import costs for oil products, due to the depreciation of the leu to the dollar.
The General Manager of LukOil Romania, Constantin Tampiza, said that the company drafted a plan earlier this month including measures to fight the crisis, aimed at protecting the company’s revenues. LukOil is one of the top three companies on the fuel distribution market. The plan includes interviews of each of the company’s clients regarding solvability. Eighty percent of the company’s sales are to stable clients, which have been operating for at least five years. “Consumers who do not comply with payment deadlines will be penalized as of the first day of non-payment,” Tampiza said. Furthermore, the effects of the leu’s depreciation will be included in fuel prices.
According to Tampiza, the company will post €1.7 billion in turnover in 2008, some 30 percent higher year-on-year, and €55-56 million in operating profit, 6-7 percent lower than in 2007.
MOL Romania’s Chief Financial Officer, Bianca Bobutanu, said the impact of the financial crisis is not significant on the company. However, MOL Romania is monitoring both the local market and foreign market evolutions. “We are trying to determine the potential impact and are preparing a set of measures for this context,” Bobutanu said. MOL is focusing on programs to optimize operations, cut costs, and cautious and efficient use of resources.
