ARMO’s net revenue jump to ALL 314 million

Tirana, June 13 – ARMO, the newly privatized Albanian refinery, announced that for the period January through March 2008 its net revenues jumped to ALL 314 million. According to Kujtim Osmanaj, Finance director of ARMO, the increase in net revenue was due to the improved technical situation at ARMO’s two refineries, the increase of the oil quantity processed by the two refineries, and the rise in oil prices. 2006 was ARMO’s most profitable year when it earned ALL 1.94 billion. In 2007, ARMO had net revenues of ALL 1.717 billion. ARMO officials explained that net revenues fell in 2007 because it was forced by the government to sell oil, at prices below the market price, to the Fieri power plant during the energy crisis.
In the last two years, ARMO has improved its financial position compared to previous years primarily due to increases in oil prices in the world market. In January 2007, the price of crude oil was US $500 per metric ton and the price of bitumen was U.S. $250 per metric ton. In December, the price of crude oil rose to U.S. $683.75 per metric ton, while the price of bitumen rose to U.S. $290 per metric ton. According to Osmanaj, the financial results for the period May through June are expected to be even higher.
ARMO was sold in June 2008 to a foreign consortium lead by the Associated Refineries of Texas for U.S. $125 million. (Tirana Times Staff)