Romanian Petrom’s investment plan to face stiff opposition from one of its main shareholders

Petrom replied saying it had sent in due time all the papers the body had asked for. However, AVAS said it requested the investment projects from Petrom in vain, according to a release. Consequently, the body was impeded to vote within Petrom’s General Shareholder Assembly.

Other small investors owing 6.214 shares in Petrom said they support AVAS’s decision to vote against the investment plan, complaining the draft was not posted on the company’s website in time. Petrom’s nine-month profit saw a total of 1.548 billion lei, down against the 1,997 billion lei seen in the same period last year. Petrom’s revenues stood at 8.67 billion lei, down 10.37 percent against the first nine months of 2006 when they rose to 9.67 billion lei.

Petrom is majority owned by the Austrian based OMV Aktiengesellschaft, which holds a 51.011 percent stake in the oil producer. OMV’s third-quarter profit rose 22 percent, to 489 million euros, following the success registered in restructuring Petrom. Petrom Bucuresti is the largest market value company listed on the Bucharest Stock Exchange (BSE.) Its value stands at 28.152 billion lei. The main competitor of Petrom in Romania is The Rompetrol Group, which saw nine-month revenues standing at 3.2 billion euros, up 10 percent against last year.

Source: NewsIn