The year 2007 brought significant changes in the energy system

The increase in oil prices is likely to severely reduce profits of refineries, and lead to a rise in net incomes for large, integrated companies, as analysts had foreseen.

In the oil sector, last year’s hit was the sale of 75 percent of Rompetrol to KazMunaiGaz, for $2.7 billion, turning its seller, oil mogul Dinu Patriciu, into the richest man in Romania.

The impact of European Union imposed liberalization of the Romanian electricity and gas markets is yet to be felt on the market. So far, companies in the field have no strategies for securing more individual consumers, as costs are high and profits are not significant, in the short-term. At the same time, companies were compelled to separate their supply and distribution operations.

In the gas sector, all eyes in 2007 were on the stock exchange listing of state-owned natural gas transportation company Transgaz. The Initial Public Offering (IPO) on the Bucharest Stock Exchange was oversubscribed some 28 times, which is an absolute record for the local capital market.

Several major energy companies, including Verbund Austria, E.On Germany, Italys Enel, Czech giant CEZ, Belgian Electrabel, and local companies Petrom, Alro Slatina, Electrica and Rompetrol announced significant investment plans in 2007 to build thermal energy or aeolian power plants.