By Nevena Krasteva Growing domestic demand amid historically low inflation and a pick-up in private investmentand employment continued to drive economic growth in Southeast Europe (SEE) in 2016. Economic tailwinds benefited most retailers and car makers ...
Subdued domestic demand and low exports, limited credit growth due to high non-performing loan ratios, market volatility and political uncertainty continued to curb the financial performance of the companies in Southeast Europe (SEE) in 2014. Overdue structural reforms weigh on the economies in the region, which failed to benefit fully from cheaper oil and the recovery of the euro area to offset the downward pressure of the Russia-Ukraine crisis.
The slow recovery in the European Union, Southeast Europe’s (SEE) main trading partner, the sluggish prospects facing nearly all economies in the region and shrunken domestic demand all left their mark on corporate bottomlines in 2013. At the same time, long overdue structural reforms, fiscal and regulatory volatility and poor infrastructure continued to be a drag on local businesses. Against this backdrop, the performance of the companies in the SEE TOP 100 ranking was expectedly lackluster – their combined revenues in 2013 were flattish, with nearly half of the entrants seeing a decline in their revenues.
The market capitalisation of the entrants in the 2013 edition of the SEE TOP 100 listed companies ranking totaled 44.7 billion euro, compared to 39 billion euro for the firms that made the 2012 list. Most entrants in the ranking – 65, saw their market capitalisation rise, with 30 posting a decline.
With activities in exploration and production, gas and power, and refining and marketing, the OMV Petrom Group has proven oil and gas reserves of approximately 775 million barrels of oil equivalent in Romania and Kazakhstan, a maximum annual refining capacity of 4.2 million tonnes, a network of around 800 filling stations in Romania, Moldova, Bulgaria and Serbia, a 860 megawatt (MW) gas fired power plant and a 45 MW wind park. OMV Petrom was acquired by Austria’s OMV in 2004 in the largest privatisation deal Romania had seen up to that point. OMV owns 51% of the company.
The economies of Southeast Europe set out on a hard and long road to recovery last year, trying to beat the challenge of sluggish demand for their exports in the eurozone, their main trading partner.
Unsurprisingly, the EU member states in the region fared worse than their non-EU neighbours due to their stronger integration with the western European markets. In contrast, non-EU member states capitalised on their looser links with the EU to post bigger growth in their gross domestic product (GDP).
Mariana Gheorghe first came in contact with OMV Petrom via the European Bank for Reconstruction and Development (EBRD) where she had worked since 1993, first as an Associate Banker and then as a Senior Banker for Southeast Europe and the Caucasus Region. After Petrom was privatised in 2004, Gheorghe became a Member of the Board of Directors of Petrom as EBRD representative.