Butan Gas, a major player on the LPG (liquefied petroleum gas) market, generated turnover worth 40m euros in the first eight months of the year, up 29% on last year.
The Romanian company is part of an international group, developed by Romanian businessman Iosif Constantin Dragan, one of the wealthiest entrepreneurs in the country.
"Turnover was boosted by the development of the trading segment, namely wholesale to the majority of players that operate on this market," stated Cristian Florea, the company's financial manager.
According to the latest Butan Gas estimates, turnover is forecast to hit 67 million euros this year, up 17 percent on last year, while net income is expected to amount to 2.7 million euros.
In addition, the company has earmarked investments worth 9.5 million euros for 2007.
The main players on the LPG market are Shell Gas Romania, Crimbo Gas and Rompetrol Gas.
In terms of acquisitions, the gas market has been one of the most dynamic sectors this year. Petrom acquired Shell Gas Romania, which marked the total exit from the market of one of the world's biggest oil companies.
The second deal, which has been anticipated for a long time, will be sealed at the end of this year and involves the sale of Crimbo Gas business, controlled by the Cristi Borcea (chairman of Dinamo football club) to SHV Dutch group, one of the largest players globally. The deal is worth approximately 40-50 million euros and introduces onto the market a player with strong financial power, which has the potential to sharpen competition on the segment.
The LPG market is worth approximately 320 million euros. According to the company estimates, Butan Gas controls around 21 percent of the market, Rompetrol Gas holds 7 percent, but counts on doubling this value within five years, whilst Crimbo Gas holds less than 10 percent of the market.
