Keppel Infrastructure is investing the capital for 20 per cent stake in MET Group

MET Romania Energy, a subsidiary of Swiss MET Group, announces successful results for 2019 and after the completion of the second major acquisition in 2018 – RWE Energia (after taking over Repower), the company managed – by applying the business strategy – to consolidate its position on the local energy market and to achieve its goal, to meet the budget, with a profit margin of 2-3% at the sale price.

“We do not have the final financial data for 2019 yet, but I can say, with satisfaction, that we have succeeded in achieving everything we have proposed for this year: a growth of business by at least 5 per cent, compared to 2018, with the amount of energy delivered to customers exceeding 4 TWh (3.1 TWh electricity and 0.9 TWh natural gas). Also, we have a portfolio of approximately 2300 consumers,” says Petre Stroe, CEO MET Romania Energy.

The company also states that on the local market, MET Romania Energy manages to gain a market share of over 7 per cent with approximately 5,000 consumption units.

“As part of our strategy set for the next 5 years, we aim to increase the business by at least 5 per cent every year. Since taking over as CEO, in 2017, we wanted to implement a new business model for MET Romania, a vertically integrated model, which also means the development of production capacities, renewable or using natural gas. Thus, we analyze the opportunity of building a new production capacity or the acquisition of an existing capacity. To this end, we have taken important steps in identifying locations. We express our willingness to dialogue with the local authorities so that we transfer the know-how we have in the energy area and, on the other side, to be informed with our needs and the demands of the community. Only in this way, through cooperation, but also through the correct understanding of the regulatory framework, we can make investments in energy production, investments that are so necessary now,” says Petre Stroe.

According to the manager, the key words for the next years are consolidation and predictability, with focus on the improvement of delivery services quality.

On the natural gas market, MET Romania has a share of about 2.01 per cent, ranking among the top 10 suppliers in the country. “In the context of new natural gas sources, we focus on strengthening our position as a supplier by developing our customer portfolio,” says Petre Stroe. Regarding the balancing activity (PRE), MET Romania Energy maintains the third place, with 1.000 served customers. According to Stroe, an example of this is represented by the costs with the imbalances caused by the consumers (the differences between the consumption estimate and the actual realized). “At the termination of a supply contract, the imbalance band we are considering with the client is plus / minus 15 per cent. An additional 15 per cent to the energy price is due to the imbalances, caused by the wrong estimation of the customers, and this can lead to very high costs, which can affect the profitability of the activity! That’s why this cost should and can be managed! Together, all market players – consumers, suppliers, market operators, Transelectrica – must meet, find solutions, because we must control this situation, which can affect us all,” concludes Petre Stroe.

On the international markets, Keppel Corporation announced today that Keppel Infrastructure Holdings Pte Ltd, through Keppel Energy Switzerland Holding AG (to be incorporated in Switzerland as an indirect wholly-owned subsidiary of the Company), represented by its founding shareholder Keppel Energy Pte Ltd, has entered into a share purchase agreement (the “SPA”) to acquire 20% of the common shares (the “Sale Shares”) in the capital of MET Holding AG (“MET Group”) from MET Capital Partners AG (“MCP”), for an aggregate cash consideration of EUR 53.02 million (the “Consideration”).

MET Group is an integrated European energy company headquartered in Switzerland, with activities in natural gas, power and oil, focused on multi-commodity wholesale, trading and sales, as well as energy infrastructure and industrial assets.

The Consideration was arrived at on a willing-buyer and willing-seller basis after arm’s length negotiation, considering the future business prospects of MET Group. Based on the unaudited management accounts of MET Group for the period ended 30 September 2019, the book value and net tangible assets of the Sale Shares was approximately EUR 42 million. Completion of the acquisition under the SPA is subject to the fulfilment of certain conditions precedent, including clearances from the competition authorities in the European Union and Ukraine. Upon completion of the acquisition, MET Group will become an associated company of the Company.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction, according to the company release.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above transaction, according to the company release. More info on the transaction on at Singapore Exchange Ltd.