Rompetrol the petroleum group run by businessman Dinu Patriciu could
double turnover on the French market through Dyneff, France's
largest independent petroleum operator, which the company acquired at
the beginning of 2006.
"I think Dyneff has the potential to
double its turnover on medium term (3-5 years), compared with the
around 3 billion dollars (1.8 billion euros) seen last year. The French
market is undergoing major changes, which could lead to a reduction in
the market share held by super and hypermarkets on the fuel
distribution segment. Since most such companies are considering giving
up this segment, which does not bring in any additional profit, this could provide a growth opportunity for
us," says Andre Naniche, COO (Chief Operating Officer) of the Rompetrol
Group.
According to the most recent statements from Rompetrol
representatives, 35% of the French fuel retail market is in the hands
of hypermarkets. Their policy is to secure as many customers as
possible, by pushing profit margins derived from fuel retail close to
0%. This strategy also affects other petroleum companies present on the
market, given that they can no longer sacrifice their profit margins in
order to have competitive prices that can match those of fuels sold in
hypermarket-based petrol stations. If the hypermarkets exit this
segment, which is unprofitable for them, a huge market will be created
for petroleum companies that operate in France, with Rompetrol being
one of them.
This year, Rompetrol's business on the French
market will amount to around 3.7 billion dollars, while, at a group
level, Rompetrol forecasts turnover worth up to 12 billion dollars,
significantly higher than the 7 billion dollars estimated for the end
of 2007. On medium term, estimates made by representatives of the group
point to turnover worth 30-40 billion dollars, with acquisitions in
Western Europe to act as the company's growth driver.
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