Shell Gas Romania, the local branch of Anglo-Dutch petroleum giant Shell, managed to increase its profitability and turnover, in spite of the decline in the petroleum price.
"The company's nine-month turnover amounts to 46 million euros, 2% higher than in the corresponding period of 2005. The company reported a net profit worth 3.5 million euros over the period considered, an increase of 18% against the same period of last year," says Gabriel Stoicescu, general manager of Shell Gas Romania.
The rise in profit seen by the company seems surprising, considering the international quotes for crude oil have increased over the past few months.
Shell Gas Romania's officials believe the results were made possible by a more rigorous cost control policy.
"There is one more factor that contributed to this growth. The nine-month results include a period at the beginning of the year when the rise in price per barrel attenuated the effects of a decrease in quotes over the last months. Shell maintained profit margins, which means that over periods of significant rises in international quotes, the prices were not adjusted at the same rate. This also goes for the periods of long-standing decreases," added Stoicescu.
Shell Gas holds some 30% of the local LPG market, together with Petrom and other major competitors such as Butan Gas, Rompetrol Gas and Crimbo Gas. The LPG business amounts to 250 million euros per year.
"This market maintains its sales volumes regardless of the petroleum quotes. In other words, the gas cylinder market sees a slight downward trend, caused by natural gas penetration, whereas the bulk and car LPG markets are rising," says Stoicescu.
"By contrast, the fluctuation of barrel quotes has a significant influence on the company's turnover and, implicitly, on its profitability. The price of LPG is usually influenced to
