2017 in sight

2017 in sight

2017 budget

If 2016 is the first year when we should meet our budget goals, 2017 is likely to be a year of real prosperity. The budget estimate that we have prepared is ambitious but achievable, especially if we look at the evolution of our market share and the reduction of the Brasov plant break-even point.

The 2017 budget was built on the premise of growth, differentially for the various lines of business. The automotive lubricants sales are based on the good performance of indirect sales through our retail distributor network and heavy duty distributors, boosting TOTAL’s performance in the auto sales area. Meanwhile, the good performance of first filling sales to Dacia and the Dacia dealer network also contribute to the good results. Industrial lubricants sales will be triggered by the good performance of the automotive industry segment, where we hope to gain as much market share as possible, along with new segments we want to focus on. Unfortunately, the Lubrifin range is still losing ground on a very competitive and aggressive market segment.

With regards to bitumen sales on the market, we intend to continue the increase of our volumes, following the performance trend we have been seeing in recent years and delivering 75.000 MT in 2017. This increase is based on sustained client prospection efforts, lobbying on the local authorities and involvement in large-scale projects, but also on providing high quality services to differentiate us from our competitors (for instance, by offering our clients an innovative portal for order placements and real-time tracking delivery). All these efforts will be supported by the necessary investments projected for Ozun, of upgrading the facilities to our Group standards.

Last but not least, we expect to further boost our special fluids sales, even if the start was difficult and the deliveries did not meet the initial expectations.

The control of fixed expenses is also key when it comes to ensuring the good competitiveness of our company. After so many years of difficult financial results and thanks to the efforts made within the framework of the CAP project, the growth of sales and export volumes is managed by making use of the remaining capacity of our production and logistic means with minimum increases in costs.

However, we plan to further raise our marketing expenses in 2017 to sustain the development of our sales and notoriety in Romania.

Cristian Mateescu

Financial Manager

Bogdan IANCĂU, Cristian Plant Operational Manager

In 2017, older locally developed products will be replaced by lubricants with new formulations.  Maintaining the same volume sales will be a challenge, but it is an important step for the local production activity to develop future volumes, as noticed in the increase of the investment budget.

Bogdan IANCĂU, Cristian Plant Operational Manager

“The investments we made in 2016 are meant to increase the automation of our production processes, while those for 2017 will focus on the development of our production capacity.” 

Radu IGNAT, Supply & Logistic Manager

“Our 2016 investments focused mainly on raising health and work safety standards and environmental protection standards. In 2017, we will concentrate our efforts on productivity and plan the construction of a new bitumen tank with a capacity of 2.000 MT.”

Mihaela Mândrea-Muraru, Commercial Director

“The main growth generating segments are direct sales in agriculture, construction and metalworking, and distributor sales - targeting spare parts stores and truck fleets.”