Motor Oil set for electricity market entry through NRG buy

Motor Oil Hellas plans to soon enter the country’s retail electricity market following its recent takeover agreement reached with independent power supplier NRG, one of the retail electricity market’s smaller players, the petroleum company’s administration noted during yesterday’s presentation of first-half results.

Competition committee authorities are expected to endorse Motor Oil’s acquisition within the next two months, possibly between late September and early October.

Besides the retail electricity market, Motor Oil Hellas also intends to enter the natural gas market through subsidiary firm Coral, operating a retail network of 700 outlets and serving a daily customer base estimated at 200,000.

Domestic fuel demand was below satisfactory in the second quarter, Motor Oil officials told analysts at yesterday’s presentation of first-half results. Second-quarter sales dropped by 4.3 percent despite the summer tourism season’s arrival, officials told. However, Motor Oil Hellas subsidiaries increased their market shares, company officials informed.

Positive developments at Motor Oil Hellas included an increase in the sale of shipping and aviation fuel. Profit margins have increased in both sectors.

Also, the petroleum group is expecting results – early October – of a consultancy firm study for compulsory refinery improvements as a result of International Maritime Organization (IPO) regulation changes concerning a reduction of shipping fuel sulfur content levels, globally. Motor Oil Hellas is gaining an increased share in this market.