For over 25 years on the local market, MOL Romania is “a dynamic player, ready to continue its journey”, said Camelia Ene, CEO of MOL Romania, in an interview for Energynomics. Digitalization is an important focus for the future development of the company, alongside “diversifying the products and services in our portfolio, to meet the ever-changing needs of the customers”.
Dear Mrs. Camelia Ene, crude oil prices are again above the $ 80 a barrel rate, untouched in the last seven years. Is this level sustainable, in your opinion? How does this price level influence the current activity of MOL in Romania?
During the first wave of the pandemic, the roads became empty, but since, the world has turned around and demand is currently very high. The economy is still recovering from the crisis, which is having an extreme effect on the demand. The problem is that demand rebounds while supply remains at a low level. In fact, now, there is not enough supply to meet the demand, and it takes time until it is restored.
But this is not just the case for fuels. The general over-demand is pushing up the prices of raw materials, metals, food, industrial goods, and transport.
Did you register sales declines in the last part of 2021, amid the accelerated increase in the price of fuel at the pump? Do you anticipate such a decline?
MOL Group recently announced its Q3 results. The company’s clean CCS EBITDA for the first 3 quarters reached USD 2,583mn, 63% higher than last year in the same period, recovering from pandemic-hit 2020 base. Upstream jumped by 87% year-on-year (to USD 396mn), driven by the improvement of the macroeconomic environment.
Downstream results increased to USD 436mn in Q3, boosted by favorable macro conditions such as doubling petrochemical margins year-on-year
Consumer Services improved by 15% compared to Q3 last year due to the strong economic recovery in the core regions.
For Romania, our expectations have been met and even exceeded. Our results so far this year have been positive which, in our view, is the consequence of a client-oriented strategy made possible by a very professional and results-driven team effort. In Q3, MOL sales in Romania exceeded even the values from the similar period of 2019. We’ve said it so many times already – we place customers at the center of all our offers and actions and we are always doing our best to meet their most diverse needs.
How do you anticipate that the operational figures of MOL in Romania will look at the end of the year?
We began the year in a very optimistic note, being confident that, as restrictions were on train to be lifted, people would return to their old traveling habits. Data so far indicate that our expectations have been met and our results are positive. After a very good Q2, the results for Q3 indicates further growth. As mentioned previously, we have always placed customer at the center of all our activities and actions. Therefore, we are always ready to offer our clients a wide array of high-quality products, selected especially to meet even the highest of their expectations. Nevertheless, we are always paying extra attention and staying prepared through the joint efforts of our local and group colleagues.
Earlier this year, the MOL Group launched a new medium-term “Shape Tomorrow” strategy. What are the concrete actions to implement this strategy in Romania?
MOL brought innovation and state-of-art technology to the next level in so many fields. The company is now ready to take things to a whole new level. In this regard, the group recently updated its long-term strategy, to fully integrate it with a new sustainability strategy — aligned with the European Green Deal ambitions — and complemented with a vision beyond 2030. Our vision is to be a key player in the low-carbon circular economy in Central and Eastern Europe. A highly efficient company, providing sustainable materials for the economy, low carbon fuels for mobility and convenient products and services for the people on the move. Under this strategy, we maintain special attention on the Consumer Services segment, and our aim is to diversify sales channels through integrated digital platforms. We also plan to further develop the food and convenience offers and continue the standardization and digitalization of processes.
In 2021, MOL exceeded the quota of 240 filling stations in Romania. Does the strategy of expanding the presence of MOL in the country continue?
In 2020, we celebrated 25 years on the Romanian market. It was a celebratory moment which allowed us not only to look back at our achievements so far but also to make further plans. We have built from the scratch one of Romania’s largest and most performant networks of service stations. We currently have 243 units and our plans to further expand the network are going through a very positive and important path. Currently, we work on a major project in this regard, namely the construction of 14 new service stations under a deal with CNAIR. At the beginning of the year, further to a public tender procedure, MOL Romania Petroleum Products was awarded 7 concession contracts for 7 double lots (14 service areas) for development and construction of service spaces on the motorways Nădlac – Sibiu (A1), Pitești – Bucharest (A), and Cernavodă – Constanța (A2). Under the contract with CNAIR, MOL Romania will build 14 service stations on the most important routes of the country: 6 stations on Lugoj-Deva motorway; 4 stations along Orăștie-Sibiu motorway; 2 stations on Bucharest-Pitesti motorway section; and 2 service stations on Medgidia-Constanța motorway. The stations we will build under the contract with CNAIR are to accurately mirror our goals in terms of portfolio diversification for our customers. We have in mind here service spaces served by cutting-edge technology, places where drivers can stop not only to fuel their cars but also to rest, eat or relax. We will have fueling services, EV charging services, the Fresh Corner concept operated in specially designed buildings, personal hygiene facilities, dedicated outdoor spaces for truck drivers and campers, pet-friendly spaces and many other services.
How many charging stations for electric cars does MOL have in Romania and what are the plans for the coming years?
Although we believe that demand for classic fuels will continue to be dominant on a short and medium term, we are already preparing for the future, and we started to install EV chargers in our stations. So far, we have 23 EV chargers MOL Plugee installed in our stations and we plan to continue to expand the network. At the regional level, by the end of 2021, the number of chargers will reach 200, so we will soon be able to comfortably drive our own electric vehicle from the Czech border to the Adriatic or Black Sea. Under the NEXT-E program, co-financed by the European Union, the project consortium will have a total network of 252 EV stations in six countries (Czech Republic, Slovakia, Slovenia, Croatia, Hungary and Romania), installed by MOL and its strategic partners (E.ON, HEP, Petrol, BMW, Nissan).
You launched the MOL Plugee application in 2021, at a time when the business model in this segment has not stabilized. What are the first results after launching the application?
The MOL Plugee app is one of our most recent tools designed to offer electric vehicle users a charging experience based on a new type of payment solution. The application considers the electricity absorption capacity of vehicles and is much better adapted to the needs of all those who own an electric car. This is part of our efforts to provide our customers with tailored solutions that can bring the best answer to their needs. As EV cars become increasingly popular we will also continue to develop and improve our EV charging technology.
Is the local market still one of the great development opportunities? What are these opportunities and how are they different from those in neighboring markets (Bulgaria, Serbia, Hungary, or countries further west)?
Our 25th anniversary on the Romanian market represents 25 years of growth, investments and innovations on the Romanian market, a period during which we have continuously thrived for a more diversified portfolio of products and services that best serve our clients. We have grown alongside the local economy, which we helped further develop. MOL Romania is now a dynamic player, ready to continue its journey together with its employees, partners, clients, and communities. We believe that the local market is still growing and developing, and we know that our journey is still just at the beginning.
MOL has a vision for the future. We see fuel stations turning into integrated service stations for those who travel – whether we are talking about grocery shopping, coffee breaks or charging electric cars. The company has already started the transformation process and its main objective is to keep up with innovation developments and become the first choice of customers on the move. For Romania, our development strategy is focused on three main pillars that follow the strategy of MOL Group: Digitalization, Development, Diversification & Sustainability. At the same time, we set out to further develop our logistics system and network of service stations nationwide, while diversifying the products and services in our portfolio, to meet the ever-changing needs of our customers.
—————————————-
This article firstly appeared in the printed edition of Energynomics Magazine, issued in December 2021.
In order to receive the printed or electronic issue of Energynomics Magazine, we encourage you to write us at office [at] energynomics.ro to include you in our distribution list. All previous editions are available HERE.