Romania's Romgaz tops SEE most profitable companies ranking
Romanian natural gas producer Romgaz has overtaken peer OMV Petrom as the winner of this year's edition of the SEE Most Profitable companies ranking with a 28.26% return on revenue after a two-year stay at the no. 2 spot. The company booked a net profit of 314.6 million euro, the second biggest among the entrants in the SEE TOP 100 ranking, on 1.1 billion euro revenue. The positive results were accompanied by 249 million euro investment programme, mostly in 2D and 3D seismic surveys, as well as drilling of 22 exploration wells.
For its part, the former winner OMV Petrom does not even make it into this year's edition of the ranking after its net profit fell 62% to 409.9 million euro, while revenues edged down 3% to 4.1 billion euro. Still, it ranked as the biggest company in Southeast Europe in terms of net profit in 2014.
The next positions in the ranking were taken by two electricity producers – Romania's Hidroeletrica and Croatia's HEP-Proizvodnja, a car tires maker, Romania's Continental Automotive Products, and a telecommunications company, Croatia's Hrvatski Telekom. Continental rose by one spot from the previous year, in tune with the general uptrend in the automotive industry.
Hrvatski Telekom dropped one place from last year, whereas its Serbian peer Telekom Srbija climbed to the no. 6 spot from the ninth position in last year's ranking. Telekom Srbija's return on revenue rose to 17.71% from 16.11%. The two companies were the only representatives of the telecommunications sector in the ranking this year.
The Romanian companies' domination spreads over the ranking of the most profitable companies, as well. They occupy six out of the 10 spots, unchanged from last year. Croatia comes next with three entries, while Serbia was represented by only one company. In the previous ranking, Croatia and Serbia had two entries each.
This year's ranking is rather diverse as it comprises representatives of eight different industries.
Croatian drug maker Pliva came in seventh as its return on revenue rose to 15.43% from 14.07%. Pliva, part of Israel-based Teva Group, opened in late 2013 a new plant near Zagreb. The new plant was supposed to significantly improve Pliva's capacity for production of tablets and capsules and boost its exports, since most of these products are intended for international markets, it said at the time. Obviously the plan worked as Pliva was propelled to the SEE TOP 100 companies ranking, landing at no. 77.
The eighth position was taken by the Romanian unit of Austrian wood processing company Holzindustrie Schweighofer, which fell by one place from last year as its return on revenue dropped by close to six percentage points to 13.84%.
Romanian metals company Silcotub, a newcomer to the ranking, placed ninth with a return on revenue of 12.72%. A year earlier, its return on revenue stood at 9.32%. Another Romanian company, do-it-yourself retailer Dedeman, took the last place in this year's ranking after its return on revenue rose to 12% from 10.56%. The retailer has been busy expanding its network - in mid-2014 it said it plans to increase the number of its outlets to 50 by the end of 2015.
The threshold for making it in this year's ranking dropped, as companies needed to achieve a return on revenue of above 12% to find themselves on the list versus 14.86% a year earlier, indicating that the general profitability of the companies in the region has dropped.