RAIFFEISEN BANK S.A.

  |  2013-02-22

Romanian Daily Report - February 22

OMV Petrom and Repsol enter partnership to explore deep onshore in Romania; Teraplast cancelled the contract for the sale of the terracotta business line ; Alumil Rom Industry - top and bottom line decreased during 2012

OMV Petrom and Repsol enter partnership to explore deep onshore in Romania
OMV Petrom signed a farmed-out agreement with Repsol by which the latter acquires a 49% working interest for the area deeper than 2,500 – 3,000 m of four onshore exploration blocks located in the south of the Southern and Eastern Carpathians. Investments are estimated at approximately EUR 50 mn in the next two years.
Petrom performed an intense 3D seismic program in the area, as a result of which the Totea gas discovery was reported (in the Southwestern part of Romania). OMV Petrom and Repsol will jointly evaluate the data obtained during the already performed seismic programs to determine exploration drilling opportunities. The exploration partnership with Repsol is the third signed by OMV Petrom, after the joint venture agreement with ExxonMobil in 2008 and Hunt Oil in 2010, in an effort to boost reserves replacement rate. We rate the news as neutral.

 

Teraplast cancelled the contract for the sale of the terracotta business line
According to a release to the stock exchange, Teraplast (TRP) announced that it has cancelled the contract signed with Teracotta Bistrita for the sale of the terracotta business line, given that that the buying entity failed to comply to the contractual terms and recently entered bankruptcy. We remind that in late 2011, Teraplast approved the sale of the terracotta business line (which includes equipment, buildings and land) to Teracotta Bistrita for approx. EUR 1 mn (RON 4.4), but book value of the assets stood at RON 4.8 mn, thus TRP registered a net loss of RON 0.4 mn. Terracota Bistrita managed to pay only EUR 105 ths of the debt, and entered bankruptcy afterwards, thus TRP decided to annul the initial agreement and reverse the transaction and regain control of the assets. Even though TRP received EUR 105 ths, and will regain the assets, we believe that the sale of this business line could prove difficult, thus we view the news as neutral.

 

Alumil Rom Industry - top and bottom line decreased during 2012
Alumil Rom Industry (ALU) published its 2012 preliminary results under IFRS, but given that until now these results were published under RAS, qoq comparison is difficult. Over 2012, sales decreased by 7% yoy to RON 69 mn, while cost of goods sold decreased by 8% yoy to RON 49 mn and selling and distribution costs adjusted downwards by 10% yoy to RON 12 mn. Administrative expenses augmented by 17% yoy to RON 6.7 mn, thus EBIT dropped by 10% yoy to RON 3.5 mn. Financial gains were lower (RON 0.05 mn vs RON 0.9 mn during 2011), due to higher interest burden and Fx losses. Thus, net profit decreased by 20% yoy to RON 3.2 mn.
In the last two years the company did not distribute dividends, while previously ALU was a constant dividend payer.

 

Antibiotice signed two contracts with distributors from the United States worth USD 5 mn
According to a release to the stock exchange, pharmaceutical producer Antibiotice (ATB) announced that it has signed two contracts with distributors in the United States worth USD 5 mn. According to the release, export contracts are expected to be worth some USD 23.5 mn in 2013 up from USD 20 mn during 2012 (about 24% of total revenues).

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Scoring Methodology by ERNST&YOUNG


 
#
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