Energy companies post heftiest losses in SEE, paced by Srbijagas

Energy companies continued to dominate the 2013 SEE money losers ranking with 13 representatives, unchanged from a year earlier. Serbian state-owned gas monopoly Srbijagas remained the biggest money loser in the region, its loss widening to 434.9 million euro.

For a second year in a row Serbian state-owned gas monopoly Srbijagas topped the 2013 SEE money losers ranking, its net loss swelling to a staggering 434.9 million euro from 324 million euro a year earlier. The Serbian government’s decision to keep gas prices low and its unwillingness to carry out a much-needed restructuring of the company are the main reasons for its dire state.

A total of 13 energy companies were included in the 2013 ranking, after booking a total of 1.55 billion euro in net loss.

Croatian oil and gas company INA which turned to a net loss of 213.8 million euro in 2013 from a net profit of 175.3 million euro the previous year, was one of the new entrants in the ranking, landing straight at the second place. The company has said its 2013 results were heavily impacted by external and special factors. In view of the prolonged political and security risks in Syria, it adjusted the value of its Syrian assets, which cut its operating results.

The other Croatian entrant in the ranking, at number 7, was INA’s gas trading arm Prirodni Plin, which cut its net loss to 105.1 million euro from 137 million euro.

Romania’s Petrotel, a refinery owned by Lukoil Energy&Gas Romania, took the third place in the ranking. Its net loss widened to 207.1 million euro in 2013 from 61.9 million euro a year earlier.

Representatives of the oil and gas sector have said depressed demand and, in the case of Romania, an increased fiscal burden, have impacted negatively their performance.

Romanian steel mill Arcelormittal Galati ranked fourth as it booked a net loss of 165.4 million euro in 2013 versus a net loss of 52.2 million euro the previous year. The company was one of the two representatives of the metals industry, the other one being Romanian aluminium smelter Alro. Romania, which had the highest number of representatives in the SEE 2013 most profitable companies ranking, dominated the biggest losers ranking, as well, with seven entrants. Bulgaria had four entrants in the ranking , all energy companies – Lukoil Neftochim Burgas, Naftex Petrol, Natsionalna Elektricheska Kompania and Lukoil-Bulgaria.

Croatia and Slovenia had two representatives each while Albania and Bosnia and Herzegovina had one company listed in the ranking.

A total of five companies operating in the retail and wholesale sector made it to the ranking.