E.ON Romania CEO: The market is still in trouble, and this will drive investors away

E.ON Romania said it would cut back on investment spending this year depending on the decisions made by the market regulator, and the volume of stored natural gas in Romania will be reduced by 60%.
“I think that what’s plaguing the recovery of the market is that the selling price of natural gas is grossly undervalued. And in a situation like this, no company can withstand for a long term. Romania’s flagging financial resources would drive investors away. We’ll have to cut back on investment spending. And contractors will take the heaviest losses, on the lack of orders. We will also have to reduce our natural gas supply for the next winter”, said Frank Hajdinjak, chief executive of E.ON Romania.

The company’s natural gas supply will thus be reduced from 560 million cubic meters to 230 million cubic meters.

E.ON Romania’s CEO said this decision was not linked to ANRE’s policy. “Our investment spending plan will be revised according to ANRE’s decisions on energy and natural gas prices”, said Hajdinjak.

Frank Hajdinjak said in December 2009, E.ON Romania would spend around €60 million on investments in natural gas and power distribution.

E.ON Romania is a subsidiary of Germany-based E.ON Romania that runs operations in almost 30 countries. E.ON Romania holds majority stake in E.ON Gaz Romania, E.ON Moldova Furnizare, E.ON Gaz Distributie, and E.ON Moldova Distributie.

In Romania, E.ON is present since 2005 in power and natural gas, in Moldova, Banat and Transilvania.

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