Energy companies are not being impacted in a universal way by the impact of the coronavirus pandemic, its effects varying from one sub-sector to another, as was made clear during conference-call presentations of 2019 financial results by two different types of firms, Motor Oil, active in refining and fuel trade, and Mytilineos, whose interests include energy production and supply.
Motor Oil needs to counter lower international oil prices, lowered by the coronavirus outbreak combined with a price war between Russia and Saudi Arabia. Oil prices may have fallen but fuel demand is expected to slide further as stricter coronavirus stay-at-home orders are enforced.
The main challenge for Motor Oil is to maintain liquidity at levels ensuring sustainability.
As for the corporate group Mytilineos, represented by Protergia in the retail energy market, it has yet to experience a drop in electricity demand. Italy, hardest-hit by the coronavirus in Europe, has seen electricity demand drop by 7 percent.
The significant decline in natural gas prices is expected to offer Mytilineos purchase cost savings of about 99 million euros over a one-year period.
The group is continuing its development of a new gas-fueled power plant.
Despite the crisis, the Mytilineos group aims to continue operating its units at full capacity and utilize the availability of low-cost fuel.