Petrolinvest to go shopping among gas companies

20-05-2008, 16:41

Warsaw (Puls Biznesu) – Ryszard Krauze’s company wants to consolidate the Polish LPG market. TBS will be the partner here.

Petrolinvest which has been selling liquid gas for over 10 years, has recently presented positive net income. It was not generated by oil sector as the company has not found oil yet but by the gas sector which Petrolinvest is going to develop.

“When we sign contract with our partner TBS Enterprises Limited Partnership, we are jointly going to consolidate the Polish market of LPG retail sales. Thanks to acquisitions, we want to acquire new distribution channels”, Marcin Balicki, member of the board responsible for financial issues at Petrolinvest said.

Experts do not doubt that the company may consolidate the LPG market. They point out, however, that depending on its segments, it will be easier or more difficult.

“It’s very easy to consolidate the market of gas used in cars because nearly 75 percent of this market consists of owners of small independent gas stations. I’m skeptical, however, as far as acquisitions in gas used for heating and technology are concerned. The market is not so scattered and belongs to several strong players”, Andrzej Olechowski from the Polish Organization of Liquid Gas commented.

First, however, Petrolinvest must sign an important contract. As early as in March, the company said it would sign contract with TBS, a Russian company registered in the UK. The agreement provided for deliveries of LPG from Russia. Petrolinvest promised to shift its LPG business to a subsidiary TPG Gaz. TBS is supposed to acquire 49 percent of the company and enable the Polish firm to sign contract for LPG deliveries directly with a Russian producer. Petrolinvest will thus import at least 450,000 tons of gas.

“We are about to sign investment contract with TBS. Our partner is conducting due diligence at TPG Gaz. We will conclude the agreement before June 15th as promised”, Marcin Balicki said.

The contract should generate PLN 900m (EUR 266.4m) of additional sales within three years, or PLN 300m annually. Last year, Petrolinvest had PLN 221m of sales, nearly 100 percent generated by LPG imports.

(PLN 1 = EUR 0.296)

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