Loading ...Petrom, the largest oil and gas producer in South Eastern Europe, has contracted a three-year credit lie of 375 million euros, the company reports.
This is the largest medium-term credit line ever extended to a Romanian company. The loan was granted by a group of five banks – Unicredit Bank Austria AG, Credit Agricole Luxembourg SA, Erste Group Bank AG, Raiffeisen ZentralbankOsterreich AG and Societe Generale Bank & Trust (SGBT), all of which have business ties with Petrom and OMV, the majority shareholder in Petrom.
According to Petrom, the loan will be used to cover the financial needs of the company in accordance with the budgets and the current investment programmes of the company.
Petrom is still in full swing of modernisation and restructuring, a process that requires high investment. Investment so far has been sustained by a capital increase performed by OMV when Petrom turned private and by the cash flow generated by Petrom’s activities.
Petrom is still in full swing of modernisation and restructuring, a process that requires high investment. Investment so far has been sustained by a capital increase performed by OMV when Petrom turned private and by the cash flow generated by Petrom’s activities.
This loan became necessary to support an investment programme worth 1.5 billion euros a year. The fact that Petrom has managed to raise medium-term financial pledges from banks, despite the current unstable context, demonstrates that Petrom is consolidating its already solid position,” says Petrom Executive Director Mariana Gheorghe.
Petrom’s investments over the past three and a half years stood at 3.41 billion euros. Following a revision this June of the strategy for 2010, Petrom is estimating annual investments of nearly 1.5 billion euros in 2008-2010.
“Petrom has the largest investment budget of all the local energy companies; it has viable solutions to meet the challenges in this field, and through its projects and initiatives it will contribute to energy supply security in Romania,” said Gheorghe.
“Petrom has the largest investment budget of all the local energy companies; it has viable solutions to meet the challenges in this field, and through its projects and initiatives it will contribute to energy supply security in Romania,” said Gheorghe.
Most of the 375 million euros will be drawn in euro and RON and, in order to increase loan flexibility, the money may also be drawn in USD. Interest is put at 1.5% per annum over the reference interest rate, which is proof to the quality of the credit and the beneficiary, particularly under the current market circumstances.
Petrom CFO Reinhard Pichler says this transaction is an important moment in Petrom’s international financial operations. Despite the unfavourable conditions on the world financial markets, the transaction has been successfully completed thanks to a solid relation between Petrom/OMV Group and the participating banks, he adds.
Petrom is the largest Romanian oil and gas group, with activities in the business segments of Exploration and Production, Refining and Marketing as well as Gas and Power. Petrom exploits estimated proved oil and gas reserves of 0.9 billion boe, has an annual refining capacity of 8 million tonnes and holds around 550 filling stations in Romania.
The company also has an international network of 257 filling stations located in Moldova, Bulgaria and Serbia. In 2007 the turnover of Petrom was EUR 3,683 mn, EBITDA was EUR 933 mn. OMV, the leading oil and gas group in Central Europe holds a 51.011% share in Petrom.
OMV operates in 13 Central European countries in its Refining and Marketing business segment and in 20 countries on five continents in Exploration and Production. AVAS (Authority for State Assets Recovery) holds 20.64% of Petrom shares, Property Fund SA holds 20.11%, the European Bank for Reconstruction and Development 2.026% and 6.214% are owned by minority shareholders.
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