The low oil price is favoring companies with refining operations on he local market. “Companies with exploring and production operations will definitely register lower revenues and lower profit margins in the third quarter and in the second half of the year. They will be partly covered by refining margins, which are to improve, an analyst of brokerage company SSIF Broker Cluj, Adrian Danciu, told Business Standard.
The demand for oil products will decrease, also impacting on the results of companies in the field. “Oil prices hike is an advantage for oil companies only if it is supported by demand, not by speculative deals. It might be a shot-term advance, but on the medium term, it can have a [negative] impact, as the demand for oil products is decreasing,” Danciu added.
LukOil Romania’s General Manager, Constantin Tampiza, said the lower oil price is an advantage for the company. LukOil is one of the top three oil companies in Romania, along with Petrom and Rompetrol. “When prices were very high, a decline in sales was registered. Once oil became cheaper, out margin on fuel distribution slightly increased, so we currently have an advantage,” Tampiza said.
