FINANCIAL STATEMENTS
on the date and for the financial year ended
December 31st 2022
prepared based on the accounting regulations in accordance with
The International Financial Reporting Standards
approved by the Ministry of Finance Order no. 2844/2016
Financial Statements
I. STATEMENT of the FINANCIAL STANDING ON DECEMBER 31st, 2022
II. STATEMENT OF PROFIT AND LOSS AND OTHER ELEMENTS OF THE GLOBAL RESULT FOR THE FINANCIAL YEAR ENDED DECEMBER 31st, 2022
III. STATEMENT OF CHANGES IN EQUITIES ON DECEMBER 31st,2022
IV. Cash-flow statement for the year ended December 31st, 2022 (DIRECT METHOD)
V. EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS ON DECEMBER 31st, 2022
These financial statements, from page 2 to page 62, have been authorized for issue and signed by the company’s management on March 23rd, 2023.
Director General |
| Economic Director |
Eng. Dorin Tudora |
| Econ. Sanda Toader |
The attached notes, from 1 to 26, are integral part of these financial statements.
These financial statements and the related notes, from page 2 to page 62, have been authorized for issue and signed by the company management on March 23rd, 2023.
Director General |
| Economic Director |
Eng. Dorin Tudora |
| Econ. Sanda Toader |
The attached notes, from 1 to 26, are integral part of these financial statements.
STATEMENT OF CHANGES IN EQUITIES ON DECEMBER 31st, 2021 | |||||||
- RON- | |||||||
Name | Share capital | Legal reserves | Revaluation reserves | Other reserves | Retained earnings | Year’s profit or loss | Total equity |
Balance on January 1st, 2021 | 28,569,842 | 5,713,968 | 20,931,765 | 500,269,257 | 40,678,977 | 60,846,759 | 657,010,568 |
Net result of the year | - | - | - | - | - | 51,928,770 | 51,928,770 |
Actuarial gain of the period | - | - | - | - | 2,975,347 | - | 2,975,347 |
Surplus from revaluation | - | - | (2,571,644) | - | 2,571,644 | - | - |
Other elements of the equities - retained earnings | - | - | - | - | 408,156 | - | 408,156 |
Retained earnings coming from the adoption, for the first time, of IAS 29 – unrealized gain | - | - | - | - | (1,175,672) | - | (1,175,672) |
Retained earnings coming from the adoption for the first time of IAS 29 – realized gain | - | - | - | - | 1,175,672 | - | 1,175,672 |
Allocation of profit provided by law – tax exemption of reinvested profits | - | - | - | 1,484,680 | 47,138 | (1,531,818) | - |
Net increase of the modernization quota reserve | - | - | - | 9,810,724 | - | - | 9,810,724 |
Total other global result elements | - | - | (2,571,644) | 11,295,404 | 6,002,285 | (1,531,818) | 13,194,227 |
Total global revenues related to the period | - | - | (2,571,644) | 11,295,404 | 6,002,285 | 50,396,952 | 65,122,997 |
Dividends due to shareholders | - | - | - | - | (392,498) | (59,314,941) | (59,707,439) |
Prescribed distributions | - | - | - | 5,482,940 | - | - | 5,482,940 |
Total transactions with the owners directly recognized in equities | - | - | - | 5,482,940 | (392,498) | (59,314,941) | (54,224,499) |
Balance on December 31st, 2021 | 28,569,842 | 5,713,968 | 18,360,121 | 517,047,601 | 46,288, 764 | 51,928,770 | 667,909,066 |
Note: the position “Other reserves” also contains the reserve representing the modernization quota amounting to 488,341,286 RON on 31.12.2022, namely 470,931,860 RON on 01.01.2022. This reserve has a special regime, provided by GD no.168/1998, exclusively destined to the financing of the modernization works and development works.
related to the goods belonging to the public domain. The modernization quota is being collected at the extent of capitalization and proceeds of the production and is reflected in the reserves’ accounts, on account of the expenses. On a monthly basis, the reserve modernization quota at the level of depreciation of fixed assets financed from this source is resumed in revenues.
These financial statements and the related notes, from page 2 to page 62, have been authorized for issue and signed by the company’s management on March 23rd, 2023.
Director General |
| Economic Director |
Eng. Dorin Tudora |
| Econ. Sanda Toader |
The attached notes, from 1 to 26, are integral part of these financial statements.
The cash and cash equivalents on 31.12.2022 have decreased by 33.4% compared to December 31st, 2021 (127,672,452 mRON compared to 191,751,271 RON), due to payments of assets (investments) and dividends, higher than the cash surplus obtained from the operating activity and the cash inputs related to the investment activity.
Of the total of 127,672,452 RON availabilities in the balance on 31.12.2022, the share of the modernization quota is of 48,583,716 RON.
The effects of the three activity areas (operation, investment and financing) on the cash in the 12 months period of 2022 reveal the following:
- the operating activity triggered a cash-flow in amount of 116,514,321 RON;
- the investments activity ended with a negative cash-flow in amount of 114,513,769 RON;
- the financing activity decreased the total cash flow by 66,079,371 RON.
As compared to the previous year, the cash coming from the operating activity is 47.1mRON higher compared to 2021, due to the increase of the transported quantity and increase of the transport tariffs, as well as based on the increase of the proceeds from interests related to banking placements.
The net cash from the investment activity registers a negative value higher by 98.9 mRON compared to the level registered in 2021, due to the increase of the cash outputs for the investment activity (the increase of the investments related to public domain financed out of the modernization quota).
The net cash from the financing activity registers, in both compared periods, negative amounts determined by the payment of dividends to the shareholders and the amounts related to financial leasing and rental contracts.
These financial statements, from page 2 to page 62, have been authorized for issue and signed by the company’s management on March 23rd, 2023.
Director General |
| Economic Director |
Eng. Dorin Tudora |
| Econ. Sanda Toader |
The attached notes, from 1 to 26, are integral part of these financial statements.
1. Business Description and General Information
The company “CONPET” S.A. (“The Company”) is a joint-stock company, with a unitary system administration, as per Law no. 31/1990 on the companies, republished, subsequent amendments, registered at the Prahova Trade Registry under no. J29/6/1991, and the Financial Supervisory Authority by the registration certificate no. 7227/1997.
Address of the registered offices is Ploiesti, no. 1-3, Anul 1848 Street, Prahova County.
CONPET S.A. is the concessionaire of the operating activity of the National Transport System of crude oil, rich gas, condensate and ethane, quality acquired in 2002, , by conclusion, with the National Agency for Mineral Resources (NAMR), the competent authority representing the State interests in the oil resources domain, of the Oil Concession Agreement, approved by GD no. 793/25.07.2002.
CONPET shares are being traded on the Bucharest Stock Exchange (BVB) market, under “COTE” issuing symbol.
The company CONPET S.A. is included in 7 out of the total of 9 stock indices, respectively in BET, BET-TR, BET-XT, BET-XT-TR, BET-BK, BET-NG and BET Plus. Concurrently, starting March 21st, 2022, the company CONPET S.A. has been part of the FTSE Global Micro Cap index composition dedicated to the emerging countries.
On 31.12.2022, CONPET S.A. had a market capitalization of 587 million RON (118.64 million Euro), ranking 29 in Top 100 issuers according to capitalization.
Company’s Set-up
CONPET is set up based on GD no.213/20.11.1990 regarding the set-up of the joint stock commercial companies in the industry, pursuant to Law no.15/1990 regarding the reorganization of the public economic units as autonomous administrations and joint stock companies, by taking over all assets and liabilities of the former Crude Oil Pipeline Transport Enterprise (Rom.I.T.T.C.).
The shareholder structure and number of voting rights at 31.12.2022, are:
a) the Romanian State by the Ministry of Energy, holding 5,083,372 shares with voting rights, representing 58.72% of the share capital,
b) legal persons, with 1,910,238 shares with voting rights representing 22.06% of the share capital, and
c) natural persons holding 1,663,918 shares with voting rights representing 19.22% of the share capital.
Company’s Mission
CONPET mission is the operation of the National Transport System via pipelines under safe and secure conditions, free access to the system’s available capacity to all the inquirers, authorized legal persons, under equal conditions, on a non-discriminatory and transparent basis.
Other Information on the Company’s Business
As per the Articles of Incorporation, the company’s core business is the transport of crude oil, rich gas, ethane and condensate via pipelines aiming at supplying the refineries with crude oil and derivatives out of domestic production, as well as with imported crude oil (NACE code 4950-“transports via pipelines”).
CONPET supplies transport services for its clients both via the National Transport System concessioned based on the Oil Concession Agreement of the National Transport System of crude oil, rich gas, condensate and ethane via pipelines, as well as by rail, from the loading ramps to the refineries, for the oil areas not connected to the major transport pipelines.
The crude oil National Transport System represents the ensemble of the major interconnected pipelines ensuring the collection of the oil extracted from the exploitation areas or of the imported crude oil, from the delivery sites to the processing units.
CONPET, as Concessionaire of the crude oil National Transport System entitles as common carrier and the obligation to provide, as per the legal provisions, free access to the system’s available capacity to all the inquirers, authorized legal persons, under equal conditions, on a non-discriminatory and transparent basis.
The crude oil National Transport System belongs to the Romanian State public domain and is being administered by NAMR (as per the Oil Law provisions). It comprises a pipeline system of approx.3,800 km and a transport throughput of 18.5 million tons/year.
The Legal Environment
The activity in the oil sector is being regulated by the Oil Law no.238/2004.
The National Agency for Mineral Resources (NAMR) represents the interests of the State in oil resources domain and is the competent authority authorized to apply the dispositions of Law 238/2004. As per the Oil Law, the National Agency for Mineral Resources entitles as Concession Provider of the goods belonging to the public domain, concessioned to the operators acting in the oil industry.
The main responsibilities of NAMR are the following:
- | negotiates and concludes, on behalf of the State, oil agreements; |
- | awards mining concession licenses and exploitation permits; |
- | issues regulatory acts, norms, instructions, orders and regulations; |
- | controls the compliance, by the holders of the concession agreements, with the concession licenses and exploitation permits conditions; |
- | manages the Crude Oil and Natural Gas National Pipeline Transport Systems and regulates the exploitation activities thereof by system’s concession agreements concluded; |
- | annuls the concession acts/administration acts; |
- | approves the tariffs and the frame-contract for the transport of crude oil, rich gas, condensate and ethane. |
The tariff for the supply of the transport service via the National Transport System of crude oil, rich gas, condensate and ethane.
The transport tariff stands for the exchange value of the transport service supplied by the holder of the oil concession, as common carrier for the transport, via the crude oil National Transport System, of an oil ton along the oil take-over sites from the domestic producers or import and the delivery sites to the refineries.
The company practices different transport tariffs for the two subsystems belonging to the National Transport System, namely the subsystem for the transport of the crude oil, rich gas, condensate and ethane from the domestic production and the subsystem for the transport of the imported crude oil. For the transport on the import subsystem are being settled tariffs per refineries and per transported quantity installments, being applied the bracket tariff model.
The transport tariffs are being established in accordance with NAMR Order no.53/2008 for the approval of the guidelines regarding the criteria, methodology and settlement procedure of the regulated for the transport via the National Transport System and are being approved by NAMR as competent authority.
The transport tariffs are determined by the value of transport allocation of the amount of oil transported to the beneficiaries, using a methodology based on the determination of the cost of service, defined as all the revenue required to cover the system transport operations, here included:
- | the operating cost, including: material expenses, personnel expenses, pipeline maintenance expenses, expenses with energy, costs related to the amortization of the fixed assets, the royalty and other taxes applicable to the transporter, expenses related to the provision of pipeline guard, amounts owed to landowners, other expenses etc.; |
- | modernization and development quota; |
- | reasonable profit margin. |
2. Preparation Grounds
(a) Declaration of Conformity
These financial statements of the company have been drawn up based of the accounting regulations in accordance with the International Financial Reporting Standards (“IFRS”) approved by the Order of the Ministry of Public Finance no. 2844/2016.
The IFRS standards represent the standards adopted according to the procedure provided by the Regulation (EC) no.1.606/2002 of the European Parliament and the Council from July 19, 2002 on the application of the International Financial Reporting Standards and include standards and interpretations approved by the Committee for Accounting International Standards (“IASB”), Accounting International Standards (“IAS”) and interpretations issued by the Committee for the Interpretation of the International Financial Reporting Standards (“IFRIC”).
The financials statements prepared on the date and for the financial year ended December 31st, 2022, have been audited.
(b) Overview of the Financial Statements
The financial statements are being presented in compliance with IAS,1 the Overview of the Financial Statements. The company has adopted an overview based on liquidity within the financial standing and an overview of the revenues and expenses according to the nature thereof within the statement of profit and loss and other elements of the global result, considering that these methods of presentation offer credible information and more relevant than the information presented based on other methods permitted by IAS 1.
(c) Functional and Presentation Currency
The financial statements are being presented in Romanian Lei (RON), as per the applicable accounting regulations, all amounts being rounded at the closest RON. The Romanian Leu (RON) is also the functional currency of the Company, as it is being defined by IAS 21, The effects of the variation of the currency.
(d) Evaluation Grounds
The financial statements are being prepared at historical cost, except for the tangible assets, other than the tangible assets in progress, which are being assessed at the reevaluated value, while the stocks are being assessed at the smallest value between the cost and the net achievable value.
The accounting policies defined here-below have been consistently applied for all periods presented in these financial statements.
(e) Business Continuity
The financial statements have been prepared considering the ongoing business concern.
(f) Accounting Estimates and Professional Reasoning
The preparation of the financial statements pursuant to the International Financial Reporting Standards („IFRS”) implies the use, by the Company, of estimates, professional reasoning and hypotheses affecting the reported value related to assets, liabilities, revenues and expenses. Estimates and assumptions are continuously evaluated and are based on historical experience and other factors, including predictions of future events that are believed to be reasonable under certain circumstances. The results of these estimates set the grounds for the professional reasonings regarding the accounting value of the assets and liabilities that cannot be obtained from other information sources. The actual results may be different from the estimates values.
The significant reasoning used by the management for the application of the Company’s accounting policies and the main sources of uncertainty regarding the estimates have been the same with those applied to the financial statements related to 2021.
(g) The Use of Estimates and Reasonings
CONPET has concluded, in 2002, a concession contract with NAMR according to which the Company is entitled to use public patrimony assets including the goods part of the crude oil National Transport System.
The company CONPET operates as a joint stock company, as per the Law no.31/1990 on the companies, republished, with subsequent amendments, where most of shares are being held by the State, being a public enterprise as per GEO 109/2011 on the corporate governance of public enterprises. The services supplied by the company are not public services, as they are being supplied in the benefit of the clients legal persons, therefore do not fall under the provisions of IFRIC 12, Services Concession Agreements.
3. Accounting Policies
Hereinafter, there are being described the significant accounting policies applied consistently by the company on preparation of its financial statements.
(a) Transactions in Foreign Currency
The transactions in foreign currency are being expressed in RON by application of the currency from the date of transaction. The monetary assets and the debts expressed in foreign currency at the end of the period are being transformed in RON at the currency valid on that date.
The earnings and losses generated by the differences of currency, realized or not realized, are being registered in the profit and loss statement and other elements of the global result of the respective financial year.
The foreign exchange of the main foreign currencies were:
| December 31st 2022 | December 31st, 2021 |
RON/EURO | 4.9474 | 4.9481 |
RON/USD | 4.6346 | 4.3707 |
RON/GBP | 5.5878 | 5.8994 |
(b) Accounting for the Effect of Hyperinflation
In accordance with IAS 29 Financial reporting in hyperinflationary economies, the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy shall be presented in the current unit balance-sheet on the financial year completion date, i.e. non-monetary items are restated using a general price index from date of acquisition or contribution.
Therefore, the values reported in terms of purchasing power on December 31st, 2003 are treated as the basis for the carrying amounts of these financial statements.
As the characteristics of the economic environment in Romania indicate the cessation of hyperinflation, starting January 1st 2004, the Company no longer applies IAS 29.
(c) Financial Instruments
(i) Non-derivative financial assets
The company initially recognizes the financial assets (receivables and deposits) on the date they have been initiated.
All other financial assets, here included the assets designated at fair value through profit or loss, are recognized initially on the trade date, when the Company becomes party of the contractual terms of the instrument.
Any interest in the financial assets transferred that is created or retained by the Company is recognized separately, as asset or liability.
The financial assets and debts are offset and in the statement of the financial standing is being presented the net value exclusively when the Company has the legal right to offset the amounts and intends either to settle them on a net basis, or to realize the asset and settle the obligation simultaneously. On 31.12.2022, the company holds the following non-derivative financial assets: cash, cash equivalents and receivables.
Receivables
Receivables are financial assets with fix or determinable payments that are not listed on an active market. Receivables contain trade receivables and other receivables.
Cash and cash equivalents
The cash and cash equivalents comprise the amounts recorded in cash accounts, current accounts, deposits redeemable on maturity and other cash equivalents. The cash availabilities in foreign currency are revalued at the exchange rate at the end of the period.
(ii) Non-derivative Financial Liabilities
The Company recognizes in the book-keeping the non-derivative financial liabilities on the trading date when the Company becomes party to the contractual terms of the instrument. The Company has the following non-derivative financial liabilities: guarantees retained within contractual transactions, trade payables and other liabilities.
Trade liabilities
Liabilities to the suppliers and other liabilities include the exchange value of the products suppliers’ deliveries, works executed and the services supplied.
Leasing liabilities
As per IFRS 16, a contract is or contains a leasing contract in case that contract confers the right to control the use of an asset identified for a certain period in exchange of a counter value.
For such contracts, ont the date of initiation of performance thereof, a lessee must recognize an asset related to the right of use and a debt deriving from the leasing contract, debt generating interest.
The company includes in the item “Other liabilities” also the liabilities deriving from the leasing contracts at the present value of the payments of leasing that are not paid on that date.
(iii) Share capital - Common stocks
The share capital consisting of common stocks (ordinary) is recorded at the value established based on the articles of association and addenda.
The company recognizes the amendments to the share capital only after the accomplishment of the legal procedures provided by Law no.31/1990.
(d) Tangible assets
(i) Recognition and Assessment
The tangible assets in the company’s patrimony are being classified in the following category of assets of same kind and similar use.
- | lands; |
- | constructions; |
- | operating oil product; |
- | technological equipment, measuring installations and devices, control and adjustment and means of transport; |
- | other tangible assets; |
- | tangible assets in progress. |
The tangible assets are initially evaluated at cost by the Company. After initial recognition, the tangible assets are being revealed in the statement of the financial standing at reevaluated value, established based on an assessment report drafted by an authorized independent expert. The revaluations are made with fair regularity to make sure that the accounting value does not significantly differ from what would have been determined by using the fair value on the date of the reporting period.
The tangible assets are being presented in the statement of the financial standing at the re-valuated value, diminished by the cumulated depreciation and the loss from cumulated depreciation, except for advance payments and ongoing tangible assets presented at cost.
The cost of an element of tangible assets is made up of the procurement price, here included the import fees or non-recoverable procurement fees, the transport expenses, manipulation, commissions, notary fees, expenses with permits acquirement and other non-recoverable expenses directly related to tangible assets and any other direct costs attributable to bringing the assets to the place and in operating conditions.
The tangible assets in progress stand for unfinished investments performed in-house or under contract. They are being evaluated at the production or procurement cost, as the case may be. Tangible assets in progress pass to the category of tangible assets completed after the reception, putting into operation or commissioning thereof, as the case may be.
The cost of a tangible asset built in-house is being determined by using the same principles as for a purchased asset.
The Company does not recognize in the carrying amount of a tangible asset item the current repairs and usual maintenance, these costs are recognized as an expense when incurred.
The costs of current maintenance are mainly the workmanship and expandable costs and may include the cost of small components. The purpose of these expenses is often described as being meant for the “repairs and maintenance” of the tangible assets element.
(ii) Ulterior costs
Replacements of several components of tangible assets
The components of several elements of tangible assets may need the replacements at time regulated intervals. The company recognizes in the carrying amount of a tangible assets element the cost of the replaced part of such an element, when that cost is borne by the company, if the validation criteria are being met, for tangible assets.
General Regular Inspections
One condition for the continuation of the exploitation of an element of tangible asset is the performance of a general major regular inspection for detecting defects, notwithstanding they are being replaced or not component parts of the respective assets. When a general regular inspection is being performed, the related cost is recognized in the accounting value of the tangible asset as a replacement, if the recognition criteria are satisfied.
An element of tangible assets and any significant part initially recognized are derecognized in the moment of disposal or when are not being expected future economic benefits from its use or sale.
If an element of tangible asset is re-assessed, all the other assets it is part of are re-evaluated, except for the situation when there is no active market for that asset. A class of intangible assets contains assets of the same nature and similar use, being operated by the entity. If the fair value of a tangible asset cannot be determined by reference to an active market, the asset value presented in the balance sheet is its reassessed value at the date of the last reassessment, where from are being decreased the cumulated value impairments.
When certain components of a tangible asset have a different useful life, they are being counted as distinct elements (major components) of tangible assets.
The statement related to the evolution of tangible assets of the Company during 2022 and 2021 is being detailed in note 5.
Operating Oil Product
The company recognizes in tangible assets the operating oil product evaluated in the balance sheet at determined cost from the revaluation performed as per GD no.26 from January 22,1992 updated with inflation rate up to 31.12.2003, when the Romanian economy was inflationary. Since the oil operating product of the Company physically renews with every pumping and that the component elements of this product do not bear, therefore, moral or qualitative impairment, the operation oil product has not useful life, thus is not being depreciated. The company presents the operating oil product at the cost value, here included the effects of restatements registered in the previous years as per application of “IAS29”, Financial reporting in the hyper inflationary economies”.
The Goods belonging to State Public Domain
The company administers goods belonging to the State public domain, as grantor of the oil concession Agreement concluded with the National Agency for Mineral Resources, approved by GD no.793/2002 for a period of 30 years.
Pursuant to the concession agreement, the objectives assumed by CONPET S.A. in relation to its activity are: to ensure the operation of the national transport system via pipelines under maximum safety and economic efficiency conditions, to continuously improve the quality of services and to protect the environment.
The goods resulting following the investments provided by the rehabilitation, modernization and development programs performed out of own company’s financing sources are being capitalized and depreciate on the minimum duration related to the remaining lifespan of the respective asset or the remaining term of the concession agreement. The goods are to be included in the State’s public domain on the date of amortization of the investment by the company, namely on the expiry of the normal operation term or cease of the oil agreement, if applicable, as per the legal provisions.
(iii) Reclassification as Investment Property
When an asset is being held more for obtaining revenues out of rentals or for the increase of the capital value or both, rather than for being used in the production or supply of goods and services, for administrative purposes or to be sold during the normal carry out of the activity, the asset is being transferred in investment property. Our company transfers an asset in the category of investment property if the latter generates cash flows that are, to a large extent, independent of other assets held.
The company does not hold investment property in balance on the date of preparation of these financial statements.
(iv) Intangible Assets held in view of Sale
When there is an amendment brought to the use of an intangible asset, meaning that its accounting value is to be recovered mainly by a sale transaction and not by its continuous use, the company records the asset transfer from the tangible assets category to non-current assets held in view of sale.
The non-current assets are classified as assets held for sale when:
- | They are available for immediate sale; |
- | The company’s management is engaged in a sales plan; |
- | There are minimum chances that the sales plan incur significant changes or be withdrawn; |
- | An active program to find buyers is initiated; |
- | The assets group is being traded at a reasonable price as compared to the fair value; |
- | It is expected that the sale be concluded within 12 months as of the date of assets classification as held for sale. |
Certain events or circumstances may extend the period for the completion of sale by more than one year. An extension of the period does not prevent an asset (or an asset group to be disposed) to be classified as being held in view of sale in case the delay is caused by events or circumstances outside the management control and there are enough proofs that the company remains committed to the plan regarding the asset’s sale (or the group destined to disposal).
The intangible assets (or asset group to be disposed) classified as being held in view of sale are being assessed by the company at the minimum between the accounting value and the fair value, less the sale costs.
The intangible assets are not being depreciated whilst they are being classified in view of sale.
The company does not hold investment property in balance on the date of preparation of these financial statements.
(v) Assets related to the right of use of the assets taken by leasing
On initiation of a contract, the company evaluates if that contract is or includes a leasing. A contract is or contains a leasing contract in case that contract confers the right to control the use of an asset identified for a certain period in exchange of a counter value.
As per IFRS 16, Leasing Contracts, on the date of starting the performance, the company, as lessee, recognizes an asset related to the right of use. The cost of the asset related to the right of use includes the value of the initial value of the debt deriving from the leasing contract, any leasing payment being performed at the date of initiation of performance or prior to third date, minus any in leasing stimulants received or any direct initial cost borne by the company as lessee.
The company reevaluates if a contract is or includes a leasing only provided that the terms and conditions of the contract be amended. The company determines the duration of a leasing contract as being the irrevocable period of a leasing contract, along with:
(a) the periods covered by an option of extension of a leasing contract if the lessee has the reasonable confidence that he will exercise that option; and
(b) the periods covered by an option of termination of the leasing contract if the lessee has the reasonable confidence that he will not exercise that option.
In the statement of the financial standing, the assets related to the right of use are being included in the same element-item as the one where are being presented the assets-support of the company.
(vi) Depreciation
Depreciation is being calculated by using the straight-line method.
The useful life of the tangible assets fit with those provided in the Catalog regarding the classification and normal operating durations of the fixed assets approved by Decision 2139/2004.
The goods resulting following the investments related to the national transport system via pipelines pays off along the minimum duration between the remaining lifespan of the respective asset, revised as the case may be, and the remaining duration from the concession agreement.
The assets related to the rights of use of the leased assets shall be depreciated on a straight-line basis over the term of the contract.
The lifespans of the tangible assets are being periodically revised and, if applicable, on the date of value increase thereof, due to some expenses subsequently performed.
(vii) Sale/ Cessation of Intangible Assets
Tangible assets that are scrapped or sold are being derecognized from the balance sheet together with the corresponding accumulated depreciation. Any profit or loss resulting from such an operation are included in current profit or loss.
The gain or loss resulting from the derecognition of an element of tangible assets is being determined as the difference between the net proceeds out the net accounting value of the assets.
(e) Intangible assets
(i) Recognition and Assessment
Intangible assets are initially recognized at cost. The cost of intangible assets includes expenses that are not directly attributable to the purchase of the respective elements. The expenditure related to the acquisition of software licenses is capitalized based on the costs of purchase and commissioning of the respective programs. The costs associated to the maintenance of the software programs are recognized as expenses upon occurrence.
(ii) Subsequent Expenditure
The subsequent expenses are capitalized only when they increase the future economic benefits embodied in the value of the asset to which they are intended. All other expenditure, including expenditure on the goodwill and the internally generated brands are recognized in profit or loss when incurred.
(iii) Depreciation
Depreciation is recognized in profit or loss using the linear method for the useful life estimated for intangible assets other than goodwill, from the date they are available for use.
(f) Depreciation of Assets
The Non-Financial Assets
The carrying value of the Company's assets that are not of a financial nature, other than deferred tax assets, are reviewed at each reporting date to identify the existence of impairment indices. If such indices exist, it is being estimated the recoverable amount of the said assets.
The recoverable amount of an asset or of a cash-generating unit is the maximum between its use value and its fair value, less the costs to sell that asset or units. A cash-generating unit is the smallest identifiable group that generates cash and that independently of the other assets and other groups of assets could generate cash flows. To determine the use value, the expected future cash flows are discounted using a discount rate before taxation, which reflects the current market conditions and the risks specific to the said asset.
An impairment loss is recognized when the carrying amount of the asset or cash-generating unit exceeds its estimated recoverable amount of the asset or the cash-generating unit.
The impairment losses recognized during the previous periods are being assessed at each reporting date to determine whether they have diminished or no longer exist. The impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
Given some internal and external factors, the Company assessed the net book value registered on the balance sheet date for depreciable tangible assets, in order to evaluate the possibility of existence of an impairment thereof, which could attract the record of an adjustment for impairment.
The Financial Assets
The short-term receivables are not discounted. The recoverable amount of other assets is deemed the highest value between the fair value (less sale costs) and the use value. Estimating the use value of an asset involves updating the estimated future cash flows using a pre-tax discount rate that reflects current market assessments regarding the time value of money and the risks specific to the asset.
Depreciation losses on financial assets or a receivable recorded at the amortized cost is reversed if there has been a change in the estimates used to determine the recoverable amount.
(g) Stocks
The main categories of stocks are: consumables, spare parts, ongoing services and materials like inventory objects.
The stocks are valued at the lower of cost and net achievable value.
The cost of stocks is based on the first in - first out (FIFO) principle and includes costs incurred for the purchase of inventories, production or processing costs and other costs incurred for bringing the inventories in the form and present location.
The net achievable value is the estimated selling price to be obtained in the ordinary course of business, less estimated costs of completion, when appropriate, and the estimated costs necessary to the sale.
If applicable there will be applied impairments for the obsolete stocks, slow movement or damaged.
(h) Dividends
The dividends are recognized as liability in the period in which their distribution is approved. The distribution of dividends is being performed subsequently to the approval of the annual financial statements.
(i) Revaluation reserves
The revaluations are performed with sufficient regularity so that the carrying amount should not differ substantially from that which would be determined using the fair value on the balance sheet date.
The difference between the value resulting after revaluation and the net accounting value of tangible assets is presented either according to its nature (appreciation/depreciation), either at the revaluation reserve as a distinct sub-element in “Equities” or in the "Profit and Loss" account.
If the revaluation result is an increase over the net accounting value, then, it is treated as follows: as an increase of the revaluation reserve presented within the total equity, if there was no previous decrease recognized as an expense related to that asset or as an income to compensate the expense with the decrease previously recognized at that asset.
If the revaluation result is a decrease of the net accounting value, it is treated as an expense with the entire value of the impairment when in the revaluation reserve is not recorded an amount on the asset (revaluation surplus) or as a decrease of the reserve from the revaluation by the minimum between the value of that reserve and the amount of the decrease and the possible difference remaining uncovered is recorded as an expense.
The revaluation surplus included in the revaluation reserve is transferred to the retained result when this surplus represents a realized gain. The gain is deemed realized as monthly amortization is being registered and when deleting from the records of the asset for which was established the revaluation reserve. No part of the revaluation reserve can be distributed, directly or indirectly, except for the case when it represents achieved earnings.
A particularity occurs in case of the assets financed out of the modernization quota.
Thus, in case the revaluation result shows an increase compared to the net accounting value, then it is being treated as follows:
- | as an increase of the revaluation reserve, if there was no previous decrease written-back as an expense related to that asset, |
- | as an increase of the reserve established out of the modernization quota, up to the set-off of the decrease previously recognized and for which, simultaneously with the impairment expense was also diminished the quota reserve by writing-back to revenues. |
In case the result of revaluation is a decrease of the net accounting value, the latter will be treated as an expense when in the revaluation reserve is not registered an amount related to that asset (revaluation surplus) and the reserve formed out of the modernization quota is diminished simultaneously by writing-back as income.
Starting May 1, 2009, the statutory reserves from the revaluation of fixed assets, including the lands, performed after January 1st, 2004, which are deducted from calculation of taxable profit through tax depreciation or from expenditure regarding the assets assigned and / or squashed, shall be taxed concurrently with the deduction of the fiscal depreciation, respectively when deducting from the administration of these fixed assets, as appropriate.
The achieved reserves are taxable in the future, in case of change of reserve destination, reserve distribution towards the participants in any form, liquidation, division, merger of the taxpayer or of any other reason except for transfer, after May 1, 2009, of the reserves mentioned in the previous paragraph.
(j) Legal reserves
The legal reserves are constituted in a rate of 5% of gross statutory profit, as of the end of the year until the total legal reserves reach 20% of the nominal share capital (statutory) paid-up in compliance with the legal provisions. These reserves are deductible at the calculation of the corporate tax and are distributable exclusively upon liquidation of the Company. There have not been distributed amounts to the legal reserves as they are currently constituted within the limit of the quota of 20% of the share capital, as per the provisions of Art.183, Para (1) and (2) of Companies Law no. 31/1990, subsequent amendments and completions.
(k) Other reserves
The company constitutes profit reserves also at the expense of the modernization quota, based on the GD no.168/1998 on setting the quota for the expenses necessary for the development and modernization of crude oil and natural gas production, refining, transport and petroleum distribution, subsequent amendments, presented in GD no.768 of 7 September 2000 and 1116 of 10th of October 2002 and according to the provisions of Law no.227/2015 on the Fiscal Code. The level of the modernization quota in the transport tariffs is set by the National Agency for Mineral Resources (ANRM) once the transport tariffs are approved.
In other reserves - the modernization quota, as sub-element of the accounts of equities are being included the amounts representing the plus resulting from the revaluation of the tangible assets financed out of this source, until the clearing of the decrease previously acknowledged.
(l) Related Parties
The Parties are deemed related in case they are subject to control (or joint control) by the same entity or when an entity can directly or indirectly control or significantly influence the other party, either through ownership, contractual rights, family relationship or otherwise, as defined in IAS 24 Presentation of Affiliated Party Disclosures.
(m) The Benefits of the Employees
(i) Benefits granted upon Retirement
In the normal course of business, the Company makes payments to the Romanian State in the account of his employees, at the statutory rates.
All employees of the company are included in the Romanian State pensions plan. These costs are being recognized in the statement of global result once with salaries recognition.
The Company recognizes a provision for retirement benefits. The discounted value of the liabilities related to the benefits granted on retirement is annually determined by an independent actuary. The Company operates no other pensions or post-retirement benefits plan and, consequently, has no sort of other pensions-related liabilities.
(ii) Short-term Employees Benefits
The short-term employees’ benefits are the ones to be settled in no more than 12 months as of the end of the reporting period when the employees have supplied the said services. These benefits are mainly represented by salaries and contributions of the employer to the social insurance, rest and medical leaves, the employees’ share of profit. The liabilities related to these benefits are recognized as expense while the services are supplied and are assessed on a non-discounted basis.
The company establishes a fund for the employees’ share of profit, as per the provisions of the Government Ordinance no.64/August 30, 2001.
(n) Provisions
Provisions are recognized when the Company has a current obligation (legal or implicit) generated by a past event, when it is probable that an outflow of resources be required to settle the obligation and duty can be estimated reliably.
The amount recognized as a provision is the best estimate on the balance sheet date, of the costs required to settle this obligation.
The best estimate of the costs required to settle current debt is the amount that the Company would pay, reasonably, to settle the obligation on the balance sheet date, or transfer it to a third party at that time.
Where the effect of the time value of money is significant, the amount of the provision is the present value of the expenditure expected to be required to settle the obligation. The discount rate used reflects current market assessments of the time-value of money and the risks specific to the liability.
Gains from the expected disposal of assets should not be considered in measuring a provision.
If estimated that one or all expenses related to a provision will be reimbursed by a third party, the reimbursement is recognized only when it is certain that it will be received. The reimbursement is considered as a separate asset.
Provisions are reviewed at each balance sheet date and adjusted as to reflect the current best estimate. If an outflow of resources is no longer likely to settle an obligation, the provision shall be canceled by reversal of revenue.
(o) Subsidies
Subsidies for assets, including non-monetary subsidies at fair value, are recorded in the accounting as investment subsidies and are recognized in the balance sheet as deferred income. The deferred income is recorded in the profit and loss account statement upon registration of the depreciation expenses or upon the scrapping or disposal of assets.
The subsidies that compensate the Company for the expenses incurred are recognized systematically in the profit or loss account, in the same periods when the expenses are recognized.
(p) Revenues
Revenues related to Services Supply
The revenues from the services supply are recognized in the period in which they were provided in correspondence with the stage of execution.
As per IFRS 15 Revenues from clients’ contracts, the value of the trade price allocated to an obligation of execution is recognized in revenues when (or gradually) an execution measure in being fulfilled.
In order to determine the trade price there are being considered the terms of the contract and the usual business practices. The price of the transaction represents the value of the consideration to which the company expects to have the right in exchange of the transfer of goods or services promised to a client, not including the collected amounts on behalf of some third parties.
Revenues from royalties, rentals and interests
Recognition rules:
- | interests are recognized periodically, proportionally, upon generation of the said income, on an accrual-based accounting; |
- | royalties and rentals are recognized on an accrual accounting basis, under the contract. |
(q) Financial Revenues and Expenses
The financial revenues comprise interest revenues related to the funds invested and other financial revenues. The interest revenues are recognized in profit or loss of the period, on the accrual-based accounting, using the effective interest method.
The financial expenses mainly contain expenses with interests related to leasing contracts and the expense related to currency differences.
The interest expenses generated by the debts coming from the leasing contracts are being registered in the loss and profit account along the leasing contract, being calculated at the outstanding balance of the debt related to the leasing, for each stage. This thing will determine higher expenses at the beginning of the leasing contract.
(r) Tax
The corporate tax expenses comprise the current tax and the deferred tax.
The corporate tax is recognized either in the profit and loss of the period, or outside the profit and loss, in other elements of the global result or straight in the equities.
(i) Current Tax
The current tax is the tax payable on the profit realized in the current period, determined using tax rates enacted on the reporting date and any adjustment for prior periods.
For the financial year ended December 31, 2022, the corporate tax rate, under the Fiscal Code, was of 16%.
(ii) Deferred Tax
The deferred tax is determined by the Company using the balance sheet method for those temporary differences arising between the tax calculation base on assets and liabilities and their book value, used for the individual financial statements reporting.
The deferred tax is calculated using the tax rates that are expected to apply to the temporary differences upon the write-back thereof, under the legislation in force at the reporting date.
The receivables and debts related to Deferred tax are offset only if there is a legally enforceable right to offset current tax liabilities and receivables and whether they are related to the tax collected by the same tax authority on the same entity subject to taxation, or different tax authorities but willing to achieve settlement of current receivables and payables by the tax, using a net basis or the related assets and liabilities will be realized simultaneously.
The deferred tax receivable is recognized by the Company only to the extent where the achievement of future profits is likely to happen, which can be used to cover the tax loss. The deferred tax related receivable is reviewed at the end of each financial year and is reduced to the extent that the corresponding tax benefit is unlikely to be realized. The additional taxes that arise from the distribution of dividends are recognized, at the same date, with the liability of payment. of dividends.
(iii) Tax Exposures
For the determination of current and deferred tax, the Company considers the impact of uncertain fiscal positions and the possibility of occurrence of additional taxes and interests. This assessment is based on estimates and assumptions and may involve a series of judgments about the future events. New information may become available, thus determining the Company to change its judgment regarding the accuracy in estimating the existing fiscal liabilities; such changes in fiscal obligations affect the tax expense in the period in which such determination is made.
(s) Earnings per share
The earnings per share is determined by dividing the profit or loss attributable to the Company’s ordinary shareholders to the weighted average number of ordinary shares for the period under review.
(t) Business Segments Reporting
A segment is a distinct component of the Company that provides certain products or services (business segment) or provides products and services in a particular geographical environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.
The company CONPET has a single reportable segment, namely transport services supply for its clients both via the National Transport System and by railway.
(u) Contingent Assets and Liabilities
The contingent liabilities are not recognized in the statement of the financial standing and in the profit and loss account. They are disclosed in the notes to the financial statements, except for the possibility of an outflow of resources representing economic benefits is being removed.
A contingent asset is not recognized in the financial statements and in the profit and loss account but disclosed when an inflow of economic benefits is likely to happen.
(v) Ulterior Events
The financial statements reflect subsequent events after the year-end, events that provide additional information on the Company's position on the reporting date or those that indicate a possible violation of the going concern principle (events that cause adjustments). Events following the end of the year that are not adjusting events are disclosed in notes when they are considered significant.
(w) Comparative Figures
The statement of the financial standing for the year ended December 31st, 2022 shows comparability with the statement of the financial standing for the financial year ended December 31st, 2021.
(x) New Standards and Interpretations
The following new standards and amendments of the existing standards issued by the International Accounting Standards Committee (IASB) and adopted by the European Union (EU) have not yet entered into force for the annual financial reporting period ended December 31st, 2022 and have been applied on preparation of these financial statement: [IAS 8.30 (a)]:
Norm/Interpretation [IAS 8.31 (a)], 8.31(c)] | Nature of imminent amendment of the accounting policy [IAS 8.31 (b)] | The potential impact over the financial statements [IAS 8.31(e)] |
The adoption of IFRS 17” Insurance Contracts” (in force for the annual periods starting January 1st, 2023, or ulterior to this date) | The objective IFRS 17 is to ensure the fact that a company presents in its financial statements relevant information to represent fidelity insurance contracts. The named information offers the users of the financial statements a solid basis in order to evaluate the effect of the insurance contracts on the financial position, of the financial performance and the cash flows of the company. | The adoption of the IFRS 17 will bear no impact on the individual financial statements, as this standard is not applicable at the date of preparation of these financial statements. |
Amendments to IFRS 17” Insurance Contracts” (in force for the annual periods starting January 1st, 2023, or ulterior to this date) | The amendment of the requirements regarding the transitions provided by IFRS 17 allows the companies that apply for the first time IFRS 17 and IFRS 9, Financial Instruments, to solve the problem of punctual differences of classification in connection with the comparative information within the previous reporting period. | The adoption of the amendments to IFRS 17 shall bear no impact on the individual financial statements, as this standard is not applicable at the date of preparation of these financial statements. |
Amendments to IAS 12” Corporate Tax” (in force for the annual periods starting January 1st, 2023, or ulterior to this date) | The amendments clarify how companies must account for deferred taxes on transactions such as leases and decommissioning obligations and aim to reduce diversity in reporting receivables and debts related to the deferred tax, receivables and debts related to leasing contracts and decommissioning obligations. | The adoption of Amendments to IAS 12 shall not bear impact on the individual financial statement. |
Amendments to IAS 1 “Presentation of financial statements and IAS 8 “Accounting policies, changes in the accounting estimates and errors” (effective for annual periods from or after January 1st, 2023) | These amendments clarify the differences between accounting policies and accounting estimates in order to ensure a more consistent application of accounting standards and comparability of the financial statements. | The adoption of the amendments at IA 11 and IAS 8 shall not have impact on the individual financial statements. |
The following standards and amendments to existing standards issued by the International Accounting Standards Committee (IASB) and adopted by the European Union (EU) have entered into force in the current period:
Norm/Interpretation [IAS 8.31 (a)], 8.31(c)] | Nature of imminent amendment of the accounting policy [IAS 8.31 (b)] | The impact the financial statements [IAS 8.31(e)] |
The amendments to IAS 16 “Tangible assets”, IAS 37 “Provisions, contingent debts and active debts”, IAS 41, “Agriculture”, IFRS 1 “The adoption, for the first time, of the International Financial Reporting Standards”, IFRS 3 “Business Combinations” and IFRS 9 “Financial Instruments” (in force for the annual periods starting January 1, 2022 or ulterior to this date). | The amendments to IAS 16, IAS 37 and IFRS 3 offer additional clarifications for a more consistent application of the standards or updates the references. The amendments to IAS 41, IFRS 1 and IFRS 9 have been adopted within the annual improvements issued by IASB and target the rationalization and clarification of the existing standards.
| The adoption of these amendments had no impact on the individual financial statements. |
4. Determination of Fair Value
Certain Company's accounting policies and requests of information supply require the determination of the fair value for financial and non-financial assets and liabilities.
Determination of Fair Value
Fair values are multi-level classified in the fair value hierarchy based on the input data used in the assessment techniques, as follows:
Level 1: Prices quoted on active markets for identical assets and liabilities.
Level 2: Input data, other than the prices included at Level 1, containing observable values for assets or liabilities, directly or indirectly.
Level 3: Inputs for assets or liabilities that are not grounded on the data observable on the market.
The fair values of the tangible assets have been determined in view of assessment and/or presentation of the information based on the methods described below.
The revaluated value of the lands, buildings and equipment was established beginning with the fair value based on the market method and on the cost using quoted market prices for similar items, when they are available, or the replacement cost when appropriate. The depreciated replacement cost reflects adjustments for physical deterioration, wear and tear, functional and economical obsolescence. The revaluated value of lands, buildings and equipment was determined by authorized appraisers.
Where applicable, additional information regarding the hypothesis used in the determination of fair value are presented in the notes specific to the named asset or liability.
In the following chart are being presented the fair values classified on the 3 level in the hierarchy of fair values, structured on group of tangible assets:
- RON- | ||||
| Level 1: | Level 2: | Level 3: | Fair value on December 31st, 2022 |
Lands | - | - | 25,158,645 | 25,158,645 |
Constructions; | - | - | 316,399,997 | 316,399,997 |
Machinery and equipment | - | - | 69,688,688 | 69,688,688 |
Measuring and control devices | - | - | 21,625,477 | 21,625,477 |
Means of transport | - | - | 20,185,451 | 20,185,451 |
Other assets | - | - | 2,250,809 | 2,250,809 |
TOTAL |
|
| 455,309,067 | 455,309,067 |
- RON- | ||||
| Level 1: | Level 2: | Level 3: | Fair value on December 31st, 2021 |
Lands | - | - | 25,585,843 | 25,585,843 |
Constructions | - | - | 316,226,461 | 316,226,461 |
Machinery and equipment | - | - | 60,305,390 | 60,305,390 |
Measuring and control devices | - | - | 26,102,426 | 26,102,426 |
Means of transport | - | - | 18,279,099 | 18,279,099 |
Other assets | - | - | 3,009,737 | 3,009,737 |
TOTAL |
|
| 449,508,956 | 449,508,956 |
5. Tangible assets
In 2022, compared to 2021, the intangible assets evolved as follows:
Name | Lands | Buildings and special installations | Oil operating products | Machinery and equipment | Instrumentation and control equipment | Means of transport | Other tangible assets | Tangible assets in progress | Total tangible assets |
Gross accounting value on January 1st, 2022 | 27,964,719 | 303,550,374 | 40,889,554 | 131,697,627 | 101,241,517 | 47,403,356 | 9,301,888 | 63,589,404 | 725,638,439 |
Depreciation cumulated on January 1st, 2022 | (2,378,876) | (28,213,267) | - | (71,392,237) | (75,139,091) | (29,124,257) | (6,292,151) | - | (212,540,079) |
Adjustments for assets impairment | - | - | - | - | - | - | - | (275,272) | (275,272) |
Net accounting value on January 1st, 2022 | 25,585,843 | 275,336,907 | 40,889,554 | 60,305,390 | 26,102,426 | 18,279,099 | 3,009,737 | 63,314,132 | 512,823,088 |
Inputs of tangible assets | 1,048,785 | 29,968,412 | - | 19,103,649 | 3,465,780 | 6,399,660 | 276,640 | 88,511,701 | 148,774,627 |
Outputs of tangible assets at gross value | (320,360) | (163,259) | (1,347,749) | (19,697,649) | (37,256,732) | (615,478) | (26,634) | (384,711) | (59,812,572) |
Cumulated depreciation related to outputs | 86,024 | 24,336 | - | 19,686,275 | 37,242,521 | 615,478 | 23,674 | - | 57,678,308 |
Depreciation registered during the year | (1,241,647) | (28,308,204) | - | (9,708,977) | (7,928,518) | (4,493,308) | (1,032,608) | - | (52,713,262) |
Constituted adjustments for impairment | - | - | - | - | - | - | - | 275,272 | 275,272 |
Gross accounting value on December 31st, 2022 | 28,693,144 | 333,355,527 | 39,541,805 | 131,103,627 | 67,450,565 | 53,187,538 | 9,551,894 | 151,716,394 | 814,600,494 |
Depreciation cumulated on December 31, 2022 | (3,534,499) | (56,497,335) | - | (61,414,939) | (45,825,088) | (33,002,087) | (7,301,085) | - | (207,575,033) |
Net accounting value on December 31st, 2022 | 25,158,645 | 276,858,192 | 39,541,805 | 69,688,688 | 21,625,477 | 20,185,451 | 2,250,809 | 151,716,394 | 607,025,461 |
|
|
|
|
|
|
|
|
|
|
Name | Lands | Buildings and special installations | Oil operating products | Machinery and equipment | Instrumentation and control equipment | Means of transport | Other tangible assets | Tangible assets in progress | Total tangible assets |
Net accounting value on January 1st, 20221 | 26,456,788 | 257,455,571 | 42,072,846 | 124,057,805 | 95,122,213 | 40,004,324 | 8,721,520 | 75,166,282 | 669,057,349 |
Depreciation cumulated on January 1, 2021 | (1,602,902) | (213,520) | - | (62,090,196) | (68,373,232) | (26,465,285) | (5,549,916) | - | (164,295,052) |
Adjustments for impairment of assets | - | - | - | - | - | - | - | (228,292) | (228,292) |
Net accounting value on January 1st, 2021 | 24,853,886 | 257,242,051 | 42,072,846 | 61,967,609 | 26,748,981 | 13,539,039 | 3,171,604 | 74,937,990 | 504,534,005 |
Inputs of tangible assets | 1,850,205 | 46,166,494 | - | 7,841,477 | 7,177,578 | 8,975,150 | 986,862 | (11,576,878) | 61,360,888 |
Outputs of tangible assets at gross value | (324,274) | (71,691) | (1,183,292) | (201,655) | (998,274) | (1,576,118) | (406,494) | - | (4,779,798) |
Cumulated depreciation related to outputs | 339,873 | 41,644 | - | 190,318 | 984,908 | 1,574,673 | 405,584 | - | 3,537,000 |
Depreciation registered during the year | (1,115,847) | (28,041,591) | - | (9,492,359) | (7,750,767) | (4,233,645) | (1,147,819) | - | (51,782,028) |
Constituted adjustments for impairment | - | - | - | - | - | - | - | (46,980) | (46,980) |
Gross accounting value on December 31st, 2021 | 27,964,719 | 303,550,374 | 40,889,554 | 131,697,627 | 101,241,517 | 47,403,356 | 9,301,888 | 63,589,404 | 725,638439 |
Depreciation cumulated on December 31st, 2021 | (2,378,876) | (28,213,467) | - | (71,392,237) | (75,139,091) | (29,124,257) | (6,292,151) | - | (212,540,079) |
Adjustments for assets impairment on December 31st, 2021 | - | - | - | - | - | - | - | (275,272) | (275,272) |
Net accounting value on December 31st, 2021 | 25,585,843 | 275,336,907 | 40,889,554 | 60,305,390 | 26,102,426 | 18,279,099 | 3,099,737 | 63,314,132 | 512,823,088 |
The net value of the tangible assets on 31.12.2022 has increased as compared to the end of 2021, by the amount of 94,202,373 RON.
Movements of corporal assets during 2022 include: inflows of tangible assets worth 148,774,627 RON; outflows at the remaining value of 2,134,264 RON, representing mainly oil product sold, in the amount of 1,347,749 RON. In 2022 were also registered adjustments for the impairment of various tangible assets in progress, written back to revenues, of 275,272 RON.
Depreciation of tangible assets in 2022 amounts to 52,713,262 RON.
During 2022 there have been commissioned tangible assets in amount of 57,541,693 RON.
In 2022 there have been registered also increases to the assets related to the rights of use resulting from leasing contracts, in amount of 2,709,232 RON.
Within the tangible assets are being recognized, as per IFRS 16, the assets related to the rights of use resulting from the leasing and concession contracts, as such:
- | At element-row “Lands” is included the value of the rights of use resulting from the lease and concession contracts concluded with various landowners. On the rented lands are located telecommunication equipment and cathodic protection stations in various locations in the country. On 31.12.2022 the gross value of these assets is of 5,834,244 RON, the cumulated depreciation of 3,534,499 RON, resulting a net value the rights of use related to the lands of 2,299,745 RON. |
- | At the element-row “Special buildings and installations” is included the value of the rights of use resulting from the lease and concession contracts concluded with various owners for buildings rented in order to be made available to the gendarmes, as per GD no.1486/2005 on securing the guard and protection of the objectives, goods and values with gendarmes’ teams and for the carry out of the administrative activity. On the date of 31.12.2022, the gross value of these assets is of 1,719,873 RON, the cumulated depreciation of 1,023,895 RON, resulting a net value of the rights of use related to the buildings of 695,978 RON. |
- | The line item “Means of transport” includes the value of the rights to use the assets acquired in December 2019 in a leasing system, consisting of 30 cars and 15 tank cars leased in 2022, necessary to carry out the company's specific activities. On 31.12.2022, the gross value of these assets is of 3,122,010 RON, the cumulated deprecation of 2,043,706 RON, resulting a net value of the rights of use related to the means of transport of 1,078,304 RON. |
On 31.12.2022, CONPET registers in the company’s patrimony lands with a surface of 733,601 Sq.m. with an accounting value of 22,858,900 RON, made of:
The lands held by the Company are located in Ploiesti, at the company’s administrative offices, and in the 24 counties covered by the transport pipelines or where the crude oil tanks loading ramps are being located.
The tangible assets also include the oil operating product, evaluated in the statement of the financial standing at the cost determined from revaluation, retreated by the application of IAS 29 ”The financial reporting in Hyperinflationary Economies”.
In 2022 there was sold oil product consisting of crude oil and condensate, in amount of 1,347,749 RON, for the client OMV PETROM SA.
On 31.12.2022, the book value of these lands amounts to 39,541,805 RON.
- RON- | ||
Name | December 31st, 2022 | December 31st, 2021 |
Operating oil product | 39,541,805 | 40,889,554 |
Balance of the operating oil product | 39,541,805 | 40,889,554 |
Tangible assets in progress
On December 31st, 2022, the value of the assets under execution is of 151,716,394 RON and includes investment objectives stipulated in the “Investment Program 2022”, which are composed mainly of: replacements of piping portions on different lengths and routes, replacement of connecting lines crossing Danube C1-C2 and Borcea C3-C4 arm, tank upgrades, upgrades of pumping stations and loading ramps, SCADA and telecommunication works, upgrades of cathodic protection systems, locomotive upgrades etc.
Reevaluation of tangible assets
After initial recognition, the tangible assets are being revalued.
The tangible assets for which the company has adopted the alternative treatment allowed, namely those that have been revalued, are being presented in the financial statements at the re-assessed value (the fair value at the re-assessment value), less the ulterior depreciation cumulated and the ulterior losses from depreciation. The revaluations have been performed with sufficient regularity, at least once at 3 years, the most recent assessment being performed on 31.12.2020. On December 31st, 2020, there have been appraised, by the authorized appraiser ANEVAR, the lands and goods from Group I representing “special buildings and constructions.”
The tangible assets reassessed at the fair value less the depreciation, on 31.12.2022, compared to 31.12.2021 and 31.12.2020 reveal the followings:
- RON- | |||||
Crt. No. | Class | Value on 31.12.2020 | Value on 31.12.2021 | Value on 31.12.2022 | Amendment during the year 2022 |
1 | Lands | 22,858,900 | 22,858,900 | 22,858,900 | - |
2 | Constructions; | 256,851,592 | 231,818,471 | 209,547,960 | (22,270,511) |
TOTAL | 279,710,492 | 254,677,371 | 232,406,860 | (22,270,511) | |
6. Intangible assets
In 2022, compared to 2021, the intangible assets evolved as follows:
- RON- | |||
Name | Licenses and software | Other intangible assets | Total intangible assets |
Gross accounting value on January 1st, 2022 | 10,231,567 | 3,004,699 | 13,236,266 |
Aggregate depreciation on January 1st, 2022 | (4,819,624) | (1,474,902) | (6,294,526) |
Net accounting value on January 1st, 2022 | 5,411,943 | 1,529,797 | 6,941,740 |
Inputs of intangible assets | 2,241,107 | 308,400 | 2,549,507 |
Outputs of tangible assets to the gross value | (1,860) |
| (1,860) |
Cumulated depreciation to outputs | 1,860 |
| 1,860 |
Depreciation registered during the period | (1,921,524) | (714,930) | (2,636,454) |
Gross accounting value on December 31st, 2022 | 12,470,814 | 3,313,099 | 15,783,913 |
Cumulated depreciation on December 31st, 2022 | (6,739,288) | (2,189,832) | (8,929,120) |
Net accounting value on December 31st, 2022 | 5,731,526 | 1,123,267 | 6,854,793 |
- RON- | |||
Name | Licenses and software | Other intangible assets | Total intangible assets |
Gross accounting value on January 1st, 2021 | 6,361,295 | 2,454,804 | 8,816,099 |
Cumulated depreciation on January 1st, 2021 | (3,591,863) | (910,983) | (4,502,846) |
Net accounting value on January 1st, 2021 | 2,769,432 | 1,543,821 | 4,313,253 |
Inputs of intangible assets | 3,870,272 | 549,895 | 4,420,167 |
Depreciation registered during the period | (1,227,761) | (563,919) | (1,791,680) |
Gross accounting value on December 31st, 2021 | 10,231,567 | 3,004,699 | 13,236,266 |
Cumulated depreciation on December 31st, 2021 | (4,819,624) | (1,474,902) | (6,294,526) |
Net accounting value on December 31st,.2021 | 5,411,943 | 1,529,797 | 6,941,740 |
The net value of the intangible assets on 31.12.2022 has decreased as compared to the end of 2021, by the amount of 86,947 RON.
In 2022, there have been registered inputs of intangible assets in amount of 2,549,507 RON and depreciation in amount of 2,636,454 RON.
The depreciation method used is the linear one.
The intangible assets comprise: IT programs, soft licenses, soft, vectorial map of Romania, the numeric attitudinal model of the land, orthophoto map the expenses borne by the company related to the connection to the electric power network and the water network recognized in intangible assets as rights of use.
Research and development-related expenses are not being capitalized.
7. Financial Assets
Comparative statement of the financial assets for the two reporting periods reveals the followings:
|
|
| - RON- |
Name | Other non-current securities | Fixed claims | Total financial assets |
Gross accounting value on January 1, 2022 | 5,100 | 726,260 | 731,360 |
Impairment for depreciation on January 1, 2022 | - | (320,189) | (320,189) |
Net accounting value on December 31st, 2022 | 5,100 | 406,071 | 411,171 |
Inputs | - | 2,125,874 | 2,125,874 |
Gross accounting value on December 31st, 2022 | 5,100 | 2,852,134 | 2,857,234 |
Impairments for depreciation | - | (320,189) | (320,189) |
Net accounting value on December 31st, 2022 | 5,100 | 2,531,945 | 2,537,045 |
|
|
| - RON- |
Name | Other non-current securities | Fixed receivables | Total financial assets |
Gross accounting value on January 1,st 2021 | 5,100 | 1,427,010 | 1,432,110 |
Impairment for depreciation on January 1st, 2021 | - | (320,189) | (320,189) |
Net accounting value on 31.12.2021 | 5,100 | 1,106,821 | 1,111,921 |
Inputs | - | 37,190 | 37,190 |
Outputs | - | (737,940) | (737,940) |
Gross accounting value on December 31st, 2021 | 5,100 | 726,260 | 731,360 |
Impairments for depreciation | - | (320,189) | (320,189) |
Net accounting value on December 31st,.2021 | 5,100 | 406,071 | 411,171 |
The net value of the financial assets as on 31.12.2022 increased by 2,125,874 RON compared to January 1st, 2022, on account of the increase in fixed receivables during the year, mainly due to the establishment of the guarantee related to the electricity supply contract concluded with SPEEH Hidroelectrica S.A., in December 2022.
The company holds contributions at the share capital of Independent Register Monitor in amount of 5,000 RON and is associate member, along with other companies, in the Romanian National Committee for the Oil International Council (CNR-CMP), participating at the establishment of the patrimony, CNR-CMP, with contribution in amount of 100 RON.
The non-current receivables, in net amount of 2,537,045 RON are made up, mainly, of the guarantee related to the power supply contract, refundable guarantees paid by the Company to the Ministry of Agriculture and Rural Development and the Ministry of Environment, Waters, Forests in view of temporary removal of the lands from agricultural use and forest fund for the fulfillment of various investment objectives, as well as from guarantees related to the lease contracts of lands and spaces in view of carry out of the production and administrative activities in different locations in the country, guarantees for telecommunication equipment, electric power guarantees related to certain cathodic protection stations.
8. Stocks
|
|
|
| - RON- |
Name | Consumables | Services in progress | Waste products | Total stocks |
Gross accounting value on January 1st, 2022 | 6,014,704 | 658,743 | 7,173 | 6,680,620 |
Adjustment for impairments of stocks | (1,368,533) | - | - | (1,368,533) |
Net accounting value on January 1st, 2022 | 4,646,171 | 658,743 | 7,173 | 5,312,087 |
Stocks inputs during the period | 7,471,345 | 12,555,068 | 222,597 | 20,249,010 |
Consumption/outputs of stocks during the period | (7,041,220) | (11,810,377) | (229,301) | (19,080,898) |
Income from (Expense with) adjustments for impairment of stocks | 386,884 | - | - | 386,884 |
Gross accounting value on December 31st, 2022 | 6,444,829 | 1,403,434 | 469 | |
Impairments for depreciation of inventories | (981,649) | - | - | (981,649) |
Net accounting value on December 31st, 2022 | 5,463,180 | 1,403,434 | 469 | 6,867,083 |
|
|
|
| - RON- |
Name | Consumables | Services in progress | Waste products | Total stocks |
Gross accounting value on January 1st, 2021 | 6,135,908 | 769,477 | 11,163 | 6,916,548 |
Adjustment for impairment of inventories | (1,004,542) | - | - | (1,004,542) |
Net accounting value on January 1, 2021 | 5,131,366 | 769,477 | 11,163 | 5,912,006 |
Stocks inputs during the period | 5,365,065 | 658,743 | 192,850 | 6,216,658 |
Consumption/outputs of stocks during the period | (5,486,269) | (769,477) | (196,840) | (6,452,586) |
Income from (Expense with) adjustments for depreciation of stocks | (363,991) | - | - | (363,991) |
Gross accounting value on December 31st, 2021 | 6,014,704 | 658,743 | 7,173 | 6,680,620 |
Adjustment for impairment of inventories | (1,368,533) | - | - | (1,368,533) |
Net accounting value on December 31, 2021 | 4,646,171 | 658,743 | 7,173 | 5,312,087 |
The stocks are made up of materials, spare parts and other materials that are to be used when performing the company’s business, including the ones comprising security and intervention stocks meant for the potential provoked and technical breakdowns.
The company recognizes in revenues from ongoing services the cost of supplied services but unreceived by the beneficiaries until the end of the period.
9. Trade receivables and other receivables
On December 31st, 2022 and December 31, 2021, the trade receivables and other receivables reveal the following:
|
| - RON- |
Name | December 31st, 2022 | December 31st, 2021 |
Clients | 45,295,130 | 44,266,382 |
Adjustments for the impairment of receivables | (222,936) | (120,337) |
Other trade receivables | 1,419,808 | 285,169 |
Impairments for the loss of value of other short-term intangible receivables | (122,717) | (282,466) |
Subtotal trade receivables (net value) | 46,369,285 | 44,148,748 |
Other receivables | 4,491,660 | 7,231,675 |
Adjustments for the impairment of other receivables | (1,674,185) | (2,458,264) |
Subtotal other receivables (net value) | 2,817,475 | 4,773,411 |
Total receivables | 49,186,760 | 48,922,158 |
Clients’ structure per activities is the following:
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Clients- transport activity | 44,628,760 | 36,782,001 |
Other clients - auxiliary activities | 666,370 | 7,484,381 |
Total | 45,295,130 | 44,266,382 |
Trade receivables are no interest bearer and have an average day collection of 28 days.
The main trade receivables in balance on December 31st, 2022 are to be received from: OMV PETROM S.A.– 39,120,758 RON ( December 31, 2021: 36,636,619 RON) and Petrotel Lukoil S.A.– 5,172,855 RON (December 31, 2021: 5,538,060 RON).
The revenues from transport services supplies performed to the clients hold a significant share (over 99%) in the Company’s turnover.
The Company’s client, OMV PETROM SA, holds approximately 79% of the total short-term receivables registered on December 31st, 2022.
Other receivables in amount of 4,491,660 RON mainly include: undue VAT related to the unarrived invoices until 31.12.2022 (2,011,973 RON, namely 44.8%) and amounts to be recovered from various natural and legal persons, most of them being in dispute before the courts (1,747,741 RON, namely 38.9%).
Impairments for the depreciation of trade receivables are recorded for the doubtful clients, involved in litigation or insolvency, presenting default of collection thereof. On December 31st, 2022 the value of these adjustment amounts to 222,936 RON.
Adjustments for impairment of other receivables are recorded for debits related to the legal files pending before the Law, paid fines and facing appeal. On December 31, 2022 the value of the impairments amounts to 1,674,185 RON, decreasing by 784,079 RON as compared to December 31st, 2021, following the passing on cost and the collection of certain receivables.
The Company’s registers impairments for loss of value of 100% from the value of the receivables, for clients facing appeal, insolvency and for other debits related to the established legal files or for fines received and disputed.
Statement on receivables seniority
Trade receivables
|
| - RON- |
Name | December 31st, 2022 | December 31st, 2021 |
Clients, o/w: | 45,295,130 | 44,266,382 |
Depreciated receivables | 222,936 | 120,337 |
Non-depreciated receivables, o/w: | 45,072,194 | 44,146,045 |
- seniority less than 30 days | 44,914,134 | 44,049,307 |
- seniority between 30 days and 60 days | 147,366 | 75,712 |
- seniority between 60 days and 90 days | 4,731 | 14,736 |
- seniority between 90 days and 270 days | 5,963 | 6,090 |
- seniority between 270 days and 1 year | - | 200 |
Other trade receivables, out of which: | 1,419,808 | 285,169 |
Depreciated receivables | 122,717 | 282,466 |
Non-depreciated receivables, o/w: | 1,297,091 | 2,703 |
- seniority less than 30 days | 2,101 | 2,703 |
- seniority between 30 days and 60 days | 365 | - |
-- seniority between 90 days and 270 days | 1,294,625 | - |
Other receivables
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Depreciated receivables | 1,674,185 | 2,458,264 |
Non-depreciated receivables, o/w: | 2,817,475 | 4,773,411 |
- seniority less than 30 days | 2,746,967 | 4,388,713 |
- seniority between 30 days and 60 days | - | 129,570 |
- seniority between 60 days and 90 days | - | 112,384 |
- seniority between 90 days and 270 days | 33,631 | 142,744 |
- seniority between 270 days and 1 year | 862 | - |
- Seniority over 1 year | 36,015 | - |
Total | 4,491,660 | 7,231,675 |
10. Cash and Cash Equivalents
On December 31st, 2022 and December 31st, 2021 the cash and cash equivalents are the following:
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Current bank accounts | 5,465,205 | 4,821,361 |
Bank deposits with maturity ≤ 3 months | 122,200,485 | 186,926,898 |
Cash on hand | 6,762 | 3,012 |
Total | 127,672,452 | 191,751,271 |
On December 31st, 2022, the cash from bank and cashier has decreased by 33.4% compared to December 31, 2021 (64,078,819 RON) due to the increase in cash outflows for the investment activity (the increase in public sector investments financed from the modernization quota).
The cash accounts at 31.12.2022 also include the cash representing the modernization quota, with special use regime, provided by GD no.168/1998, in amount of 48,583,716 RON. This is intended exclusively for funding the modernization and development works of public property.
The company does not have restricted cash.
11. Equities
The Share capital
During the reporting period, the share capital of the company has not changed, remaining at the value of 28,569,842 RON, divided into 8,657,528 ordinary shares with a nominal value of 3.3 RON/share and corresponding to the one registered at the Trade Register Office.
The structure of CONPET S.A. share capital and shareholding on December 31st, 2022 is the following:
Shareholders | December 31st 2022 | December 31st, 2021 | ||||
Number of shares | Amount (RON) | (%) | Number of shares | Amount (RON) | (%) | |
5,083,372 | 16,775,128 | 58.7162 | 5,083,372 | 16,775,128 | 58.7162 | |
Legal persons | 1,910,238 | 6,303,785 | 22.0645 | 2,292,221 | 7,564,329 | 26.4766 |
Natural Persons | 1,663,918 | 5,490,929 | 19.2193 | 1,281,935 | 4,230,385 | 14.8072 |
Total | 8,657,528 | 28,569,842 | 100% | 8,657,528 | 28,569,842 | 100% |
Legal reserves
On December 31st, 2022 the value of the legal reserve is 5,713,968 RON (December 31, 2021: 5,713,968 RON). The reserve is established at the level of 20% of the share capital, according to Law no.31/1990 and the Articles of Incorporation.
Other reserves
On December 31st, 2022 “Other reserves” are in amount of 533,897,764 RON.
Other reserves have increased by the amount of 16,850,163 RON in 2022, made up of: 17,409,426 RON, growth of reserves representing the modernization quota, 5,482,940 RON reserves diminution representing prescribed dividends distributed to shareholders, 1,770,982 RON representing prescribed dividends recognized in equities, and 3,152,695 RON reserves constituted for the reinvested profit.
The reserve related to the modernization quota is in amount of 488,341,286 RON and holds the highest share in total other reserves (91.5%).
Revaluation reserves
On December 31st, 2022, in the financial standing the revaluation reserves are being presented at the net value of 17,101,648 RON, resulting after the diminution of the gross value by the related deferred tax recognized directly in the equities, as per IAS 12.
Retained earnings
ON December 31, 2022 “Other reserves” are in amount of 37,149,214 RON:
- | The retained earnings representing actuarial loss from discount of benefits granted upon retirement: 1,599,191 RON; |
- | The retained earnings representing surplus achieved out of revaluation reserves: 1,258,475 RON |
- | The retained earnings derived from the first adoption of IAS 29 related to fixed assets representing oil operating product recognized in tangible assets, in amount of 39,301,668 RON. |
- | The retained result from the adoption for the first time of IAS 29, related to the operating oil product sold during 2022 (achieved gain), in the amount of 1,339,957 RON. |
The retained earnings is diminished by the amount of the reinvested profit in 2022, in amount of 3,152,695 RON, for which we have benefited from an exemption form the corporate tax, as per the provisions of Art.22 of Law no.227/2015 on the Fiscal Code, the amount being registered in the “Allocation of Profit” concurrently with the settlement of other reserves.
Profit of the year
The year’s profit realized in 2022 is of 61,663,616 RON, increasing by 18.7% compared to the profit registered in 2021 (51,928,770 RON).
Proposal to distribute the accounting profit left following the deduction of the corporate tax on December 31, 2022:
Along 2022, there have not been distributed dividends based on the interim financial statements.
The remaining accounting profit after the deduction of the corporate tax, on December 31st, 2022 is in amount of 61,663,616 RON.
The proposal to allocate by legal destinations, the accounting profit left after the deduction of the corporate tax to be distributed, to which was added the provision for the employees’ share of profit in amount of 6,387,655 RON, resulting a total amount to be distributed of 68,051,271 RON, is the following:
- RON- | |||
Crt. No. | Element | GO provision no. 64/2001 | Amount |
1 | The net profit of the financial year 2022, reported based on the audited annual financial statements | - | 61,663,616 |
2 | Employees profit sharing schemes within the limit of 10% of the net profit, but no more than the monthly average base salary achieved at the level of the economic operator reported in the reference year, acknowledged in the provisions account | - | 6,387,655 |
3 | Total profit to be allocated (1+2), o/w allocated to: | - | 68,051,271 |
a | Other allocations stipulated by law - exemption from the payment of the reinvested corporate tax (account 1068), Art 22 of Law no.227/2015 of the fiscal code | art. 1, para. (1), letter b) | 3,152,695 |
b. | Employees profit sharing schemes within the limit of 10% of the net profit but not more than the monthly average base salary achieved at the level of the economic operator reported in the Reference year | art. 1, para. (1), letter e) | 6,387,655 |
c | Dividends due to shareholders | art. 1, para. (1), letter f) | 58,510,921 |
The retained earnings that can be distributed, in the amount of 2,598,431 RON, are proposed to be distributed to cover actuarial losses resulting from the operation of updating the benefits granted upon retirement, recognized in the overall result, and the remaining difference to be distributed as dividends. The statement of reported result distributable and the allocation thereof reveals the following:
- RON- | ||
Crt. No. | Destination | Amount |
1.1. | The retained earnings representing surplus achieved out of revaluation reserves | 1,258,474 |
1.2 | Retained earnings coming from the adoption for the first time of IAS 29 – realized gain | 1,339,957 |
1 | Total retained earnings, distributed for: | 2,598,431 |
a | Covering the retained earnings representing actuarial loss from discount of benefits granted upon retirement | 1,599,191 |
b. | Dividends due to shareholders | 999,240 |
12. Trade Liabilities and Other Liabilities
On December 31st, 2022 and December 31st, 2021, the trade liabilities and other liabilities look as follows:
|
|
| - RON- | ||
Liabilities
| December 31st, 2021 | December 31st 2022 | Maturity date for the balance on December 31, 2022 | ||
Under 1 year | 1-5 years | Over 5 years | |||
Trade liabilities | 33,435,362 | 43,914,968 | 43,914,968 | - | - |
Liabilities to the employees | 28,694,583 | 37,433,451 | 14,364,317 | 3,439,960 | 19,629,174 |
Other liabilities, here-included fiscal debts and social insurances related debts | 32,614,354 | 32,314,474 | 29,565,362 | 1,847,870 | 901,242 |
Total | 94,744,299 | 113,662,893 | 87,844,647 | 5,287,830 | 20,530,416 |
Commercial debts related to the purchase of goods and services for the operating activity have a share of 52.6% in total commercial debts, while those representing the acquisition of assets have a share of 47.4%.
The liabilities to employees, in balance on the date of 31.12.2022, also include the future debts for the benefits granted to employees on retirement and the debt for the employees share of profit, for the untaken leaves of the employees and for layoffs, debts that are not recognized as provisions.
The statement of the employee-related debts, fiscal debts and other maturity debts are the following:
|
|
| - RON- | ||
Liabilities | December 31st, 2021 | December 31st 2022 | Maturity date for the balance on December 31st, 2022 | ||
Under 1 year | Over 1 year | Over 5 years | |||
Salaries contributions | 5,280,452 | 6,372,957 | 6,372,957 | - | - |
Current corporate tax | 2,049,325 | 1,997,414 | 1,997,414 | - | - |
Royalty due to the State Budget | 7,561,083 | 9,371,188 | 9,371,188 | - | - |
VAT payable | 4,503,551 | 2,688,196 | 2,688,196 | - | - |
Other interests and debts– State Budget | 966,308 | 1,202,034 | 1,202,034 | - | - |
Dividends Payable | 6,812,350 | 5,234,071 | 5,234,071 | - | - |
Leasing related liabilities | 4,398,574 | 4,457,905 | 2,405,019 | 1,517,203 | 535,683 |
Accrued revenues | 859,308 | 833,329 | 144,753 | 323,017 | 365,559 |
Other liabilities | 183,403 | 157,380 | 149,730 | 7,650 | - |
Total | 32,614,354 | 32,314,474 | 29,565,362 | 1,847,870 | 901,242 |
On 31.12.2022, the leasing-related liabilities include future payment obligations related to the leasing concluded for 30 vehicles necessary for the performance of the company’s specific activity and debts related to the rights of use recognized for the contracts of lease and concession of various lands, buildings and wagons (note 5).
The liabilities related to the rights of use recognized for the lease and concession contracts of some lands, buildings and wagons have been assessed at the value of rent fees/royalties along the remaining contractual period, discounted with the borrowing rate for real estate loans.
The statement of debts to employees on maturity terms reveals the following:
|
|
| - RON- | ||
Liabilities | December 31st, 2021 | December 31st 2022 | Maturity date for the balance on December 31st, 2022 | ||
Under 1 year | Over 1 year | Over 5 years | |||
Salaries and assimilated debts | 5,873,302 | 6,975,973 | 6,975,973 | - | - |
Liabilities for benefits granted on retirement | 16,834,462 | 19,779,263 | 594,726 | 3,260,450 | 15,924,087 |
Debts for benefits granted in case of death | - | 3,890,637 | 6,040 | 179,510 | 3,705,087 |
Debts for employees share of profit | 5,642,547 | 6,387,655 | 6,387,655 | - | - |
Debts for untaken leaves | 344,272 | 359,923 | 359,923 | - | - |
Debts for other benefits granted to the employees | - | 40,000 | 40,000 | - | - |
Total | 28,694,583 | 37,433,451 | 14,364,317 | 3,439,960 | 19,629,174 |
On December 31st, 2022, the Company comprises, at this chapter, salaries and assimilated debts, as well as future debts for benefits granted on retirement or death, for employees share of profit recognized as provisions.
The largest share of debts to employees is held by the debt for benefits granted on retirement, in the amount of 19,779,263 RON, of which 19,184,537 RON represent long-term obligations, and 594,726 RON represent short-term obligations and the debt for death benefit in the amount of 3,890,637 lei, of which 3,884,597 RON represent long-term obligations and 6,040 RON represent short-term obligations.
These debts were recorded on the basis of the Actuarial Report on the evaluation of the obligations related to the benefit on retirement and death provided by the CLA for Conpet S.A. employees, drawn up on 31.12.2022 by Ovidiu-Virgil Racoveanu, certified actuary, based on the service contract concluded with CONPET S.A.
As per the Labor Contract in force, the company must pay the employees, upon retirement, a benefit equals with a certain number of salaries, according to the seniority and company job history, and in case of death of the employee it is granted a support equal to a certain number of employees.
The updated value of the Benefits granted upon Retirement provision was determined using the Projected Unit Credit Method (IAS 19). This method is based on the principle that the benefit payable on retirement is constituted each year of service with the employer, so that each employee be compensated in due time.
The retirement benefit received by an employee at statutory retirement age has been updated taking into account the discount factor for the period remaining until the employee's retirement, the share of the benefit for the period elapsed and the likelihood that the employee remains in the firm until retirement age (and retire at that age), if the person could die, leave the company or suffer a disability.
The benefit granted in the event of the death of an employee was determined as the product of the projected death benefit up to retirement age, the present value of the death obligation during the service to the employer and the share of the benefit for the elapsed period.
The main actuarial hypotheses used for the calculation at December 31st, 2022 have been the following:
- | Rate of Inflation The evolution of the consumer price index was considered equal to the one published by the National Commission for Strategy and Prognosis, the autumn version of 2022. These estimates are similar to those of the International Monetary Fund. Thus, the following values for inflation were estimated: in 2023 a percentage of 12%, then 5.7% in 2024, 3.2% in 2025 and 2.5% in the next 5 years, being then equal to 2%. This scenario corresponds to the return to the inflation target declared by B.N.R., by the end of 2026. |
- | The rate of increase of the monthly gross average salary per company. In order to achieve the long-term projection, the average wage increase was estimated to be equal to inflation. For 2022 and 2023, the percentage of salary increase communicated by the employer was taken into account, of 10% for 2022 and 12% for 2023. |
- | The Discount Rate The discount rate was set at the risk free rate investments, no adjustments of the variations (risk free rate spot no volatility adjustment) published by EIOPA at the end of November, 2022. Given the inflation data, but also the correlation between inflation and interests, it was chosen a discount rate equal to 6.8% in 2022, 8.45% in 2023, 5.5% in 2024, 3.0% in 2025 and then 2.4% in the next 5 years, after which 1.9% per year. |
- | The statutory retirement age was considered to be 65 years for men, respectively 63 years for women, in accordance with Law no. 263/2010, updated, on the unitary public pension system. This data were corroborated with the information on the retirement age communicated by the employer. |
- | The mortality rate among the employees is based on the Life Table of the Romanian population men/women 2019 (Source: EUROSTAT). |
- | Migration of the workforce In order to model departures from the company, since 2023, an average workforce migration in percentage of 6% was estimated annually, with a progressive downward trend toward zero according to age. |
- | Duties and Taxes All duties valid as of 31.12.2022 were included in the calculation of retirement obligations. |
Since the benefits in the event of the death of the employee are paid from the employer’s social security fund, it results that these benefits do not involve the payment of duties and taxes.
During 2022, the movement in the debts for the benefits upon retirement death granted to the employees is exposed in the table below:
Name | Benefit on retirement | Death-related benefit | Total benefits |
Present value of the obligation on 01.01.2022 | 16,834,462 | 4,408,083 | 21,242,545 |
Cost of the interest | 1,190,010 | 220,888 | 1,410,898 |
Cost of the current service | 966,580 | 418,947 | 1,385,527 |
Payments from provisions during the year | (1,115,588) | (267,780) | (1,383,368) |
Actuarial gain/loss | 1,903,799 | (889,501) | 1,014,298 |
Present value of the obligation on 31.12.2022 | 19,779,263 | 3,890,637 | 23,669,900 |
Variation from the beginning of the year | 2,944,801 | -517,446 | 2,427,355 |
Percent variation | 17% | -12% | 11% |
The analysis of the sensitivity of the debt for the benefits on retirement due to the employees on the date of 31.12.2022 is presented in the following table:
- RON-
Hypotheses | Benefits granted upon retirement | Death-related benefit | Total benefits |
December 31st, 2022 | 19,779,263 | 3,890,637 | 23,669,900 |
The discount rate +1% | 18,179,173 | 3,778,051 | 21,996,891 |
The discount rate -1% | 21,591,406 | 3,981,105 | 25,545,118 |
Salaries increase rate +1% | 20,619,382 | 4,297,402 | 24,916,783 |
Salaries increase rate -1% | 18,991,404 | 3,504,681 | 22,496,085 |
The increase of life expectancy at birth with 1 year | 20,024,313 | 3,609,859 | 23,634,172 |
The liability for the employees share of profit is constituted in compliance with the Ordinance no.64/2001 and Order of the Ministry of Public Finances no.144/2005. The Ordinance no.64 from August 30, 2001 sets out that the accounting profit remaining after the deduction of the corporate tax and other allocations provided by the law to the majority or entirely state-owned companies be distributed within the limit of 10% of the net profit, but no more than the level of a monthly basic salary at the level of the economic agent, in the reference financial year. The liability constituted for personnel share of profit related to 2022 is in amount of 6,387,655 RON.
Within the liability for to the employees there is also included the liability for the untaken annual leaves, which, on 31.12.2022, is in amount of 359,923 RON.
The company does not register overdue payments at the end of 2022.
13. Provisions
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Provisions for litigations | 6,450,149 | 6,021,541 |
Provisions related to mandate contracts | 2,157,211 | 2,503,645 |
Other provisions for risks and expenses | 1,182,631 | 243,893 |
Total provisions | 9,789,991 | 8,769,079 |
Provisions for litigations
In detail, the provisions for litigations are:
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Litigations for civil compensations | 4,785,250 | 3,172,718 |
Litigations for third parties failure to respect certain contractual clauses | 118,314 | 97,286 |
Other litigations | 1,546,585 | 2,751,537 |
Total | 6,450,149 |
The company is involved in several litigations for damages required by several owners, natural and legal persons. Besides indemnifications, they request the payment of an annuity due to the exercising, by the company, of the legal easement right on the plaintiff’s lands, or the decommission of the pipelines and installations located on their fields.
Following the restitution of their property rights, they are bringing proceedings in Court against the Company, invoking the lack of land use due to the fact that they are being crossed by the crude oil transport pipelines belonging to the public domain.
On 31.12.2022 are being recorded provisions related to civil damages disputes in the amount of 4,785,250 RON, up by 1,612,532 RON compared to the value registered on 31.12.2021, following the opening of new disputes during the year and the update of provisions established for existing disputes.
On 31.12.2022, the position “Litigations for non-compliance of third parties with contractual clauses” is in the amount of 118.314 RON, up by 21,028 RON compared to 31.12.2021 and the position “Other disputes” is in the amount of 1,546,585 RON, down by 1,204,952 RON, compared to 31.12.2021.
The decrease in the position of “other disputes” was mainly due to the finalization of the dispute in case no.1474/105/2019 before the Prahova Tribunal, whereby the Municipality of Ploiesti requested the value of the lack of use and rent of the land owned and on which the Conpet buildings that compose the sports base are located. Starting March 2013 and until the conclusion of a contractual form with the defendant Conpet S.A., based on judgment no.1205/13.07.2020, handed down by the Prahova Tribunal in the case 1474/105/2019, which remained final, Conpet was ordered to pay to the Municipality of Ploiesti the value of the lack of use of the land for the period 30.03.2016-15.11.2019, updated amount with inflation rate until the actual payment date.
In the position “Other litigations”, in the amount of 1,546,585 RON, represents the exchange value of the provision constituted for the litigation opened during 2018 by Fondul Proprietatea, by which is being requested the payment of the net value of the dividends for the financial year 2006, related to a 6% quota held by the plaintiff in CONPET S.A share capital, as well as the legal interest calculated for the requested amount, starting with the maturity date thereof.
Provisions related to the Contract of Mandate
There have been settled debts for the allowances given to members of the Board of Directors and directors, in accordance with the contracts of mandate and GEO 109/2011 on corporate governance, including the related contribution, as follows:
- | 107,645 RON represents liabilities for rest leave not performed by the directors with mandate contract, corresponding to the year 2022; |
- | 2,049,566 RON represents liabilities for the variable component related to 2022, of which 613,347 RON liability for the indemnities granted to the members of the Board of Administrators and 1,436,219 RON Liabilities for the indemnities granted to the directors. |
Other provisions
On December 31, 2022 the balance of the position “Other provisions” in amount of 1,182,631 RON is composed of:
- | 161,000 RON, provision for environment-related expenses; |
- | 1,021,631 RON representing other provisions. |
The increase of the position “Other provisions” by the amount of 938.738 RON compared to the value recorded at 31.12.2021 is mainly due to the establishment of the provision for the value of the non-use of the land owned by the Municipality of Ploiesti, which was the subject of the case 1474/105/2019 before the Prahova Tribunal, calculated in the continuation of the period for which it was paid according to sentence no.1205/13.07.2020, respectively from 16.11.2019.
14. Current and Deferred Corporate Tax
The expense with the current and deferred corporate tax of the company in 2022 and 2021 is being determined by a statutory rate of 16%.
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
The expense with current corporate tax and specific tax | 11,686,338 | 9,155,006 |
The expense with /(revenues from) deferred corporate tax | (1,210,960) | (248,543) |
Total | 10,475,378 | 8,906,463 |
Reconciliation of the effective rate of taxation:
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Profit before tax | 72,138,994 | 60,835,233 |
- Corporate tax at a statutory rate of 16% | 11,542,239 | 9,733,637 |
Effect on the corporate tax of: |
|
|
- Non-deductible expenses | 4,454,372 | 3,098,947 |
- Non-taxable revenues | (3,028,149) | (3,332,690) |
-Elements similar to the revenues | 454,791 | 1,625,299 |
- Elements similar to the expenses | (243,788) | (270,277) |
- Spared corporate tax | (504,431) | (255,061) |
- Amounts representing sponsorship falling under the limits provided by law | (773,000) | (673,050) |
- Specific tax | 22,345 | 22,345 |
- Corporate tax reduction as per GEO 153/2020 | (238,041) | (794,144) |
The expense with current corporate tax and specific tax | 11,686,338 | 9,155,006 |
The deferred corporate tax
The deferred corporate tax payable and recoverable was calculated based on the temporary taxable and/or deductible differences determined for assets and debts as differences between the accounting value of the asset and/or the debt and the amount attributable in fiscal purposes. The company recognizes the deferred taxes on the account of an expense or an income except for the tax generated by an event directly accounted in the equities.
The statement of the movements related to the receivable/debt with the deferred tax during the year 2022 reveals the following:
- RON- | |||||
2022 | Net value on 1st of January | Deferred corporate tax recognized in the profit and loss account | Deferred corporate tax recognized at the expense equity | Net value on December 31, 2022 | |
Receivable related to the deferred corporate tax | Debt related to the deferred corporate tax | ||||
Revaluation of tangible assets | 61,088 | 238,493 | - | 3,352,734 | (3,053,153) |
Provisions | 4,068,628 | 1,023,505 | 304,608 | 5,396,741 | - |
Impairments of current assets | 507,769 | (51,037) | - | 456,732 | - |
Deferred corporate tax before offsetting | 4,637,485 | 1,210,961 | 304,608 | 9,206,207 | (3,053,153) |
Receivable/liability offsetting |
|
|
| (3,053,153) | 3,053,153 |
Net deferred corporate tax - recoverable |
|
|
|
| 6,153,054 |
The debt representing the deferred tax, in the balance at 31.12.2022, is in the amount of 3,053,153 RON and is recognized on behalf of the equity items, and the deferred tax receivable, recognized in the statement of global result, in the balance on the same date, is of 9,206,207 RON.
The net amount of the deferred corporate tax represents deferred corporate tax to be recovered, in amount of 6,153,054 RON.
15. Result per Share
The result per share within the last two years is:
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Profit of the Financial Year | 61,663,616 | 51,928,770 |
Number of ordinary shares at the beginning and the end of the period | 8,657,528 | 8,657,528 |
Basic and diluted earnings per share (RON/share) | 7.12 | 6.00 |
16. Operating Revenues
a) Revenues from contracts
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Revenues from transport service, of which: | 469,856,548 | 410,477,244 |
Revenues from transport services on domestic subsystem | 324,770,188 | 296,280,521 |
Revenues from transport services on import subsystem | 145,086,360 | 114,196,723 |
Revenues from rents | 1,966,022 | 1,633,259 |
Other operating revenues | 410,007 | 676,079 |
Total contracts revenues | 472,232,577 | 412,786,582 |
Transport revenues are achieved out of the services supplied to clients for the transport of the crude oil, rich gas and condensate volumes, at the tariffs approved by Order of the President of the National Agency for Mineral Resources (NAMR).
OMV Petrom is the client with the highest share in the transport revenues of the company (80.4%).
In 2022, the quantities transported on subsystems, as compared to the same period of the previous year are the followings:
Name | December 31st 2022 | December 31st, 2021 |
Domestic Subsystem | 3,062,502 | 3,241,259 |
Import Subsystem | 4,037,664 | 3,409,530 |
Total quantities (tons) | 7,100,166 | 6,650,789 |
The total quantity of transported products increased by 6.8% in 2022 compared to 2021, given the decrease by 5.5% of the quantity transported on the domestic transport subsystem and the increase by 18.4% of that transported on the import subsystem.
The tariffs for the supply of crude oil, rich gas, condensate and ethane are regulated and approved by the NAMR and are distinguished for each transport subsystem.
The tariffs applied for the import transport subsystem vary according to the installment of transported quantity, being practiced the bracketing tariff model and the refinery- the hand-over site.
During the reporting period, the following tariffs have been applied:
Tariffs from transport services on domestic subsystem:
Period | Transport tariff (RON/ton) | Approved by NAMR Order no. |
December 31, 2019 - February 7, 2021 | 87.53 | 427/2019 |
February 8th, 2021 - December 31st, 2021 | 91.03 | 19/2021 |
January 1, 2022 - December 31, 2022 | 105.50 | 229/2021 |
Tariffs for transport services on import subsystem:
Period | Batches | Arpechim Refinery | Ploiesti Basin (Petrobrazi and Petrotel Lukoil refineries) | Petromidia Refinery | Approved by NAMR Order no. |
Thousand tons/month | RON/ton | RON/ton | RON/ton |
| |
December 31, 2019 - February 7, 2021 | <120 | 40.40 | 39.50 | 15.00 | 427/2019 |
> 120 | 17.25 | 17.00 | 12.85 | ||
February 8th, 2021 - December 31st, 2021 | <120 | 42.00 | 40.90 | 16.50 | 19/2021 |
> 120 | 17.90 | 17.60 | 14.40 | ||
January 1, 2022 - December 31, 2022 | No more than 80 | 46.65 | 45.66 | 18.51 | 229/2021 |
80-120 | 37.32 | 36.53 | 14.81 | ||
120-160 | 27.99 | 27.39 | 11.11 | ||
Over 160 | 21.00 | 20.55 | 8.33 |
b) Other Operating Revenues
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Revenues out of modernization quota consumption | 39,911,780 | 37,679,545 |
Earnings from disposal of assets | 5,401,508 | 4,914,629 |
Other revenues | 4,513,637 | 3,005,236 |
Total other operating expenses | 49,826,925 | 45,599,410 |
The revenues from reserves representing the modernization quota hold 80.1% of other operating revenues, registering an increase of 5.9% compared to 2021.
On a monthly basis is being written back to the revenues the modernization quota at the level of depreciation of the fix assets financed out of this source.
17. Operating Expenses
a) Stocks and Utilities Expenses
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Expenses with consumables | 5,881,853 | 4,550,522 |
Other material expenses | 1,052,447 | 897,950 |
Other Expenses with Energy and Water | 33,739,188 | 16,552,710 |
Total Stocks and Utilities related Expenses | 40,673,488 | 22,001,182 |
b) Personnel expenses
Personnel expenditure shall include salary expenses, bonuses to employees, other staff expenses, allowances for mandate contracts of members of the Board of Directors and directors with mandate and expenditure on contributions due by the employer.
|
| - RON- | |
Name | December 31st 2022 | December 31st, 2021 | December 31st, 2020 |
Salary expenses | 143,346,066 | 133,956,205 | 130,062,145 |
Obligations regarding employees’ bonuses | 21,171,116 | 20,494,636 | 19,241,943 |
Other personnel expenses | 3,912,090 | 1,798,440 | 964,870 |
Expenses on Remuneration of Directors with mandate contract and Administrators | 4,848,193 | 4,891,630 | 4,759,157 |
Expenses with contributions due by the employer | 7,645,268 | 7,078,185 | 7,530,789 |
Total personnel expenses | 180,922,733 | 168,219,096 | 162,558,904 |
The personnel expenses are detailed as follows:
Salary expenses
|
| - RON- | |
Name | December 31st 2022 | December 31st, 2021 | December 31st, 2020 |
Basic salaries and related contributions expenses | 139,049,643 | 131,351,541 | 127,010,975 |
Quarterly bonuses | 3,129,119 | 1,000,000 | 2,297,970 |
Retirement support | 1,115,588 | 1,534,284 | 712,850 |
Marriage support | 51,716 | 70,380 | 40,350 |
Salary related expenses | 143,346,066 | 133,956,205 | 130,062,145 |
Expenditure with personnel basic salaries and related bonuses have increased in 2022, compared to 2021, mainly due to the indexation of wages by an average of 7% since 15.12.2021.
In accordance with the Collective Labor Agreement in force, the Company has also provided employees the following benefits: quarterly bonuses, retirement support, marriage support.
Obligations regarding employees’ bonuses
|
| - RON- | |
Name | December 31st 2022 | December 31st, 2021 | December 31st, 2020 |
Employees share of profit | 5,517,801 | 6,655,473 | 6,439,906 |
Meal vouchers | 6,474,030 | 6,665,960 | 5,129,940 |
Social expenditures under art. 25 of Law no. 227/2015 on the Fiscal Code, further amendments and completions | 6,442,781 | 5,358,057 | 6,154,469 |
Other expenses as per the Collective Labor Agreement | 2,736,504 | 1,815,146 | 1,517,628 |
Total | 21,171,116 | 20,494,636 | 19,241,943 |
The value of the bonuses granted to the employees meets an increase of 676,480 RON in 2022, compared to 2021, mainly due to the increase of bonuses of social nature granted to the employees and other expenses as per CLA.
In accordance with provisions of the the Collective Labor Agreement in force, the Company paid to the employees’ bonuses as social expenses under art. 25 of Law no. 227/2015 regarding the Fiscal Code consisting of tickets for rest and treatment, including travel, gifts to employees, aid for birth, funeral, serious illness, humanitarian and other social expenses as per the CLA.
Other personnel expenses
- RON- | ||||
Name | December 31st 2022 | December 31st, 2021 | December 31st, 2020 | |
Expenditure on compensatory payments relating to staff layoffs | 3,912,090 | 1,798,440 | 962,850 | |
Expenses with the right of the personnel due under court order | - | - | 2,020 | |
Total | 3,912,090 | 1,798,440 | 964,870 | |
The position “Other personnel expenses" includes costs of severance payment, provided under CLA, related to personnel layoffs conducted during the period.
Expenses on Remuneration of Directors with mandate contract and Administrators
|
| - RON- | |
Name | December 31st, 2022 | December 31st, 2021 | December 31st, 2020 |
Allowance of the directors with mandate | 2,785,516 | 2,705,194 | 2,571,461 |
Allowances of the members of the Board of Directors | 2,062,677 | 2,186,436 | 2,187,696 |
Total | 4,848,193 | 4,891,630 | 4,759,157 |
The expenses related to the allowances for mandate contracts of directors and administrators recorded a decrease of 43,437 lei in 2022 compared to 2021, due mostly to the decrease of the variable allowance expenses for 2021, paid in 2022. Following the resignation of a member of the Board of Directors from 08.04.2021, a provisional administrator was appointed on the vacant position, whose remuneration did not include a variable component.
Expenses with contributions due by the Employer
|
| - RON- | |
Name | December 31st, 2022 | December 31st, 2021 | December 31st, 2020 |
The company's contribution to voluntary pension funds | 2,871,425 | 2,258,525 | 2,895,553 |
Company’s contribution to voluntary health insurance | 1,188,747 | 1,496,785 | 1,426,889 |
Labor insurance contribution and other contributions | 3,585,096 | 3,322,875 | 3,208,347 |
Total | 7,645,268 | 7,078,185 | 7,530,789 |
The contribution of the company to the voluntary pension funds in 2022 shows an increase of 612,900 RON compared to the previous year due to the increase of the amount granted up to the limit of 400 EUR / employee provided by the fiscal code.
In 2022, following the salary increases on December 2021, the national insurance contribution has proportionally increased.
Employees
During 2022, the average number of employees has evolved as follows:
|
|
|
|
Name | 31.12.2022 | December 31st, 2021 | 31.12.2020 |
Employees with leading positions | 81 | 80 | 95 |
Employees with execution positions | 1,386 | 1,431 | 1,445 |
Total | 1,467 | 1,511 | 1,540 |
c) Expenses related to External Services
|
| - RON- |
Name | 31.12.2022 | December 31st, 2021 |
Rail transport expenses | 61,429,832 | 63,201,693 |
Expenses with royalties and rentals | 36,680,362 | 32,023,330 |
Third-party pumping expenses | 4,587,750 | 4,482,564 |
Maintenance and repair expenses | 2,789,259 | 2,317,429 |
Expenses with the decontamination, monitoring of the environmental factors | 1,939,120 | 1,473,919 |
Travel, secondment and transfer expenses | 640,889 | 620,561 |
Expenses related to the transport of goods and personnel | 27,429 | 36,000 |
Postal and telecommunication expenses | 695,738 | 604,279 |
Other expenses with services performed by third parties | 5,451,782 | 5,016,060 |
Total expenses related to external services | 114,242,161 | 109,775,835 |
The expenses with royalties and rents contain mainly the oil royalty due by the company to the State budget, as holder of the oil agreement, for the use of the goods ‘public property of the State within the oil operations.
It is being calculated according to the Oil Law no. 238/2004, by application of an average quota of 10% of the value of gross income achieved out of oil transport operations through the oil national transport systems.
d) Other expenses
|
| - RON- |
Name | 31.12.2022 | December 31st, 2021 |
Taxes, fees and similar levies related expenses | 2,507,801 | 2,269,019 |
Compensations, fines and penalties expenses | 1,309,157 | 157,092 |
Donations granted (sponsorships) | 773,000 | 673,050 |
Environmental protection expenses | 13,993 | 33,725 |
Expenses with the establishment of the modernization quota | 57,321,207 | 47,490,268 |
Other operating expenses | 479,282 | 283,667 |
Other expenses | 62,404,440 | 50,906,821 |
The chapter “Other expenses” mainly comprises the reserve regarding the modernization quota, in amount of 57,321,207 RON, established on the account of the operating expenses , in compliance with the provisions of GD no. 168/1998 further amendments and with the provisions of the Fiscal Code approved pursuant to Law no. 227/2015, further amendments and completions.
In 2022, the expenses recorded with other taxes, fees and similar levies include, mainly the expenses with the local taxes and expenses with the contribution to the special fund, due under the Law no. 448/2006 regarding the protection and promotion of the disabled persons.
18. Net Financial Result
|
| - RON- |
Name | 31.12.2022 | December 31st, 2021 |
Revenues from interests | 9,737,028 | 3,402,658 |
Other financial revenues | 102,400 | 25,624 |
Total financial revenues | 9,839,428 | 3,428,282 |
Interest expenses on leasing contracts | 236,174 | 202,065 |
Other financial expenses | 233,103 | 127,759 |
Total financial expenses | 469,277 | 329,824 |
Net Financial Result | 9,370,151 |
Financial revenues have increased by 187% in 2022 compared to 2021, and financial expenses increased by 42.3% in the current year compared to the previous year. Based on this evolution the financial result has decreased by 202.4% in 2022, as compared to 2021.
19. Fiscal Legislative Framework
The tax declarations are subject to revisions and corrections of fiscal authorities, generally for a period of five years after completion thereof.
The fiscal legislation in Romania is very complex and is constantly reforming according to the internal and international economic and financial context, being regulated by a multitude of normative acts: laws, government decisions approving the implementing rules, simple and emergency ordinances, orders, instructions, circulars, clarifications, etc.
We cannot talk about a facile approach thereof by the taxpayer, especially that it is generally maintained an abusive practice from the fiscal bodies in what concerns the construction of the legal provisions enshrined by the law itself.
The modernization of the fiscal legislation in Romania does not yet provides clarity and accessibility in the application of the provisions of the fiscal Code, by restructuring, on systematic bases, of the fiscal norms, as well as those on fiscal procedure and there still exists the risk that the fiscal authorities adopt different positions in connection with the interpretation of these aspects with consequence in the calculation of additional obligations and interests/penalties payment, augmentations and delay fines.
By Law no.207/2015 on the fiscal procedure Code there have been amended several principles with regard to the interpretation of law, meaning that in the interpretation of the fiscal legislation is being applied the principle “in dubio contra fiscum, therefore in case of doubt related to the fiscal norm it is being applied the interpretation in favor of the taxpayer.
However, before this interpretation has been given, each public servant must clarify the respective text, by appealing to the good will of the legislator and the meaning of law, verify the points of view expressed in the substantiation notes, in reasons exposures (...). Thus, it should be noticed the spirit of the law as a whole and the purpose for which this law has been created. Only if by these norms the meaning of the norm has not been clarified, will the rule of interpretation in favor of the taxpayer apply, which envisages the protection of the taxpayer against an abusive application of the law by the fiscal body, as well as for the improvement of the relation between the fiscal administration and the taxpayer, for avoiding some potential conflicts.
The management considers having adequately registered the fiscal obligations in the financial statements.
20. Commitments and Contingencies
Capital commitments.
The company does not have granted capital commitments.
Guarantees granted to third-parties
The guarantees granted to third parties are presented in the table below:
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Non-current Receivables (Note 7) | 2,757,371 | 726,259 |
Other receivables (Note 9) | 122,717 | 282,466 |
Total | 2,880,088 | 1,008,725 |
Guarantees granted to third parties are separately presented at:
- financial assets line (Note 7)
- other receivables line, those to be recovered within less than 12 months (Note 9)
At the end of 2022, the Company has no record of other commitments granted to third parties.
Received Guarantees
The received guarantees are presented in the table below:
|
| - RON- |
Name | December 31st 2022 | December 31st, 2021 |
Performance guarantees transferred on the company’s accounts | 31,780 | 53,979 |
Performance guarantees received from the clients | 15,875,961 | 34,217,242 |
Performance guarantees received from suppliers | 129,815,163 | 27,744,885 |
Performance guarantees constituted by the beneficiaries in separate accounts at CONPET disposal. | 9,414,082 | 5,765,659 |
Total | 155,136,986 | 67,781,765 |
Contingencies
Taxation
Our company considers that all amounts due for fees and taxes have been paid and registered on the balance date.
21. Disputes
The most important disputes in which the company is involved are presented below:
File no. 5413/204/2017 –Prahova Tribunal (Conpet S.A. – defendant, ANRM - defendant, Dobrogeanu Dumitru– plaintiff, Dobrogeanu Păun Ioan - plaintiff) by which is being requested to the instance that by the decision to be taken to order:
The payment of an annual rent for the land plots occupied by the two oil products pipelines (crude oil) starting 01.07.2014 and in the future for the entire duration of the pipelines;
To order the defendants pay the compensation for the losses incurred by not reaching certain economic objectives on the remaining area between the two pipelines after their restriction and the area along the national road DN1 (E60);
Payment of legal fees.
The first head of claim was estimated by the plaintiffs in the amount of 48,000 Euro/year (220,000 RON), and the second in the amount of 25,000 RON/year.
File no. 5212/105/2018– Court of Appeal Ploiesti (CONPET S.A. – defendant, Fondul Proprietatea SA - plaintiff) by which is being requested the payment of the net value of the dividends for the financial year 2006, related to a 6% quota held by the plaintiff in CONPET S.A share capital, as well as the legal interest calculated for the requested amount, starting with the maturity date thereof.
File no. 32294/299/2020 – Sector 1 Bucharest District Court (Conpet S.A. – defendant-, Bob Mihăiță - plaintiff-defendant, ANRM - plaintiff) by which is being requested to the instance that by the decision be taken to order:
The obligation of Conpet SA and NAMR to move the crude oil pipeline crossing the land owned by the plaintiff located in Cernavoda, plot 1, plot A6 / 2, Constanța county;
the establishment of the equivalent value of the lack of use, for a period of three years, prior to the formulation of the summons, amounting to 150,000 RON;
In the alternative, the obligation of Conpet SA to pay an annual rent for the use of the land owned by the claimant, from the date of filing the summons, in the amount of 5 Euro/sq.m./year for the area of 14,645 sq. m., land affected by the protection and safety area, during the existence of legal servitude;
Payment of legal fees.
File no.3451/108/2016, ATU, Pecica City - Arad Tribunal (Conpet S.A. – defendant, Unit of Pecica City - plaintiff), by which is requested to the instance that by order that will be pronounced to dispose:
the obligation of the defendant Conpet S.A. to divert the crude oil pipeline that crosses a number of 22 plots of urban land, intended for the construction of houses, located in our property, in a total area of 20,287 sq. m.
the obligation of the defendant Conpet S.A. to pay the amount of EUR 65,000 representing the equivalent value of the house located in plot no. A141.7760 / 5/174, entered in L.B. no. 306869 because it can no longer be capitalized by the subscriber. Pursuant to judicial expertise report in the evaluation specialization performed in case upon the plaintiff request, ATU, Pecica, the global value of compensation for hindering the right to build proposed by the expert is of 137,045,69 Euro.
File no. 4395/270/2020 - Onești Courthouse - Municipality of Onești - plaintiff; Local Council of Onești Municipality - plaintiff,
by which is requested the instance that, by decision that will be pronounced dispose:
Obligation of the defendant to conclude the Convention for the exercise of the right of legal servitude on the lands in the surface of 11,474.5 sq.m., under-crossed and affected by the crude oil transport pipelines within the radius of Onești municipality, against the payment of an annual annuity, during the life of the pipelines, to the local budget of the municipality of Onești, determined by the principle of the smallest infringement of the right of ownership and calculated taking into account the value of the movement of the property affected, established under the law at the time of the damage.
Obligation of the defendant to pay material damages, representing the consideration of the lack of use of land in the surface of 11,474.5 sq.m. under crossed and affected by crude oil transport pipelines within the radius of the municipality of Onești, established according to the Market Study approved by the Decision of the City Council no. 199 of 29.11.2018, respectively according to the Updated Market Study approved by the City Council Decision no. 122 of 29.06.2020, calculated starting from 2017 until the date of conclusion of the Convention for the exercise of the right of legal servitude on such land, plus late increases, interest and late payment penalties in the amount provided for in the Code of Tax Procedures applicable during that period.
The obligation of the defendant to pay the trial costs incurred by this trial.
Case File no. 5971/2/2022 – Bucharest Court of Appeal (OMV Petrom – plaintiff, NAMR by which is requested the instance that, by decision that will be pronounced dispose:
Annulment in part of Article 1 of Order 229/2021 in respect of the tariffs set out in Annex 1 and Annex 3 and, accordingly, Annexes 1 and 3 of Order 229/2021 and, consequently, Order the NAMR to issue a new order for the approval of transport tariffs via the national transport system of crude oil, gas, condensate and ethane for 2022, including appropriately modified tariffs in the DOMESTIC tariffs (Annex 1) and import tariffs for THE refineries in the Ploiesti Basin (Annex 3).
The partial annulment of Article 3-8 of the Annex to order no. 53/2008, as well as the obligation of the NAMR to issue a new order by which to properly complete order no. 53/2008.
To rule the obligation of the to pay the court costs.
Case File no.7035/2/2022 – Bucharest Court of Appeal (OMV Petrom – NAMR - plaintiff, CONPET - plaintiff), by which is requested the instance that, by decision that will be pronounced dispose:
Partial cancellation of the addenda no. 2-9 to the transport contract no. BC OMV 108/25.03.2020 concluded between OMV Petrom and CONPET, respectively of the articles regarding tariffs on the DOMESTIC subsystem and the IMPORT subsystem, charged for transport services provided by CONPET and established by NAMR no.229/2021, within the limit of the tariffs to be established following the contentious administrative endeavors carried out by OMV Petrom regarding the tariffs with NAMR and, consequently, the obligation of CONPET to pay compensation to OMV Petrom representing the difference between the amount of the tariffs adopted by the order of NAMR no. 229/2021, paid by OMV Petrom in the period 01.01.2022-31.08.2022 and the amount of tariffs to be established in file no.5971/2/2022, updated with the inflation index, as well as the related legal interest.
The payment to OMV Petrom of the difference between the amount of tariffs paid by OMV Petrom for the transport of marine crude oil, via the DOMESTIC subsystem, from the Midia Terminal, and the quantum of tariffs through the IMPORT subsystem, according to the actual subsystem effectively used, updated with the inflation index, as well as the related legal interest.
The obligation of the defendant CONPET to pay any amounts of civil fruit that CONPET has acquired or could have acquired in relation to the amounts collected from OMV Petrom based of the tariffs.
Rule the obligation to pay the court costs.
22. The related parties
In 2022, the Company has performed the following significant transactions with related parties:
Procurement from related parties
|
|
|
| - RON- |
| ||||||
Partner |
| Procurements during 01.01-31.12.2021 | Settlements during 01.01-31.12.2021 | Unsettled amounts on December31, 2021 | Procurements during 01.01-31.12.2022 | Settlements during 01.01-31.12.2022 | Unsettled amounts onDecember 3, 2022 | ||||
SNTFM CFR Marfă SA |
| 75,544,240 | 76,460,702 | 5,792,599 | 73,827,367 | 70,611,140 | 9,008,826 | ||||
ELECTRICA FURNIZARE S.A. |
| - | - | - | 23,412,785 | 13,916,985 | 9,495,800 | ||||
SPEEH HIDROELECTRICA S.A. |
| - | - | - | 12,593,201 | 12,593,201 | - | ||||
! The amounts also include the VAT
Prepayments granted to the affiliated parties
|
| - RON- |
Partner | December 31st 2022 | December 31st, 2021 |
ELECTRICA FURNIZARE S.A. | 1,540,604 | - |
! The amounts are VAT inclusive
Guarantees granted to the affiliated parties
|
| - RON- |
Partner | December 31st 2022 | December 31st, 2021 |
SPEEH HIDROELECTRICA S.A. | 1,989,045 | - |
Guarantees received from affiliated parties
|
| - RON- |
Partner | December 31st 2022 | December 31st, 2021 |
SNTFM CFR Marfă S.A. | 500,000 | 500,000 |
23. The Audit Expenses
The Company’s audit for the year 2022 has been provided by the firm PKF AUDIT SRL
By OGMS Resolution no.6/28.10.2022 it was approved the appointment of the firm PKF Finconta SRL. as financial auditor of the Company CONPET for a period of 3 years (2019,2020,2024).
The fees are established based on the contract concluded between the two parties.
24. Risk Management
Within CONPET SA the Internal Control Management System has been implemented and developed, containing the 16 standards included in the Internal control management code of the public entities. The implementation of Standard 8 requirements “Risk Management” was a priority by documentation and application of provisions of the documents of the process “Risk management” (sheet process, flow diagram and system procedure). In 2022 there have been identified and evaluated risks that may affect the achievement of objectives. At CONPET level, have been developed a Significant risk registry and an annual plan containing measures to control significant risks, personnel in charge and time-frames for the measures.
Complex processes and activities carried out within CONPET SA may generate risks coming from various areas such as:
(a) Exchange Rate Risk
The company may be exposed to fluctuations of the exchange rate of the currencies by means of cash and cash equivalents, short-term investments, Long-term, long term loans or trade liabilities expressed in foreign currencies.
The functional currency of the Company is the Romanian Leu (RON). At present the Company is exposed to the exchange rate risk through cash and cash equivalents, as well as through the procurements made in a currency different from the functional currency. The currencies exposing the Company to such a risk are mainly EUR, USD and GBP. The debts in foreign currency are subsequently expressed in RON, at the exchange rate of the date of the balance sheet, communicated by the Romanian National Bank. The resulting differences are included in the profit and loss account, but do not affect the cash flow up to the moment of the liquidation of the liability.
The Company’s exposure to the currency risk expressed in RON was insignificant, as revealed in the statements below:
|
|
|
|
| - RON- |
December 31st 2022 | Value | RON | EUR | USD | GBP |
Monetary Assets |
|
|
|
|
|
Cash and cash equivalents | 127,672,452 | 127,292,223 | 364,177 | 15,762 | 290 |
Trade receivables and other receivables on short and long-term | 51,718,705 | 51,718,705 | - | - | - |
Monetary debts |
|
|
|
|
|
Various suppliers/creditors | (48,530,056) | (47,174,756) | (1,355,300) | - | - |
Net exposure in the financial standing | 130,861,101 | 131,836,172 | (991,123) | 15,762 | 290 |
|
|
|
|
| - RON- |
December 31st, 2021 | Value | RON | EUR | USD | GBP |
Monetary Assets |
|
|
|
|
|
Cash and cash equivalents | 191,751,271 | 191,282,244 | 454,814 | 12,702 | 1,511 |
Trade receivables and other receivables on short and long term | 49,328,228 | 49,304,153 | 24,075 | - | - |
Monetary debts |
|
|
|
|
|
Various suppliers/creditors | (38,016,085) | (31,247,046) | (5,851,195) | (917,844) | - |
Net exposure in the financial standing | 203,063,414 | 209,339,351 | (5,372,306) | (905,142) | 1,511 |
(b) Credit risk
The Credit risk is the risk that the Company incur a financial loss as a result of the failure to perform the contractual obligation of a client or counterpart to a financial instrument default, and this risk arises mainly from the Company's commercial claims, cash and cash equivalents and short-term investments.
Maximum exposure to the collection risk at the reporting date was:
| - RON- | |
Name | December 31st 2022 | December 31st, 2021 |
Trade receivables and other receivables on short and long term (net value) | 51,718,705 | 49,328,228 |
Total | 51,718,705 | 49,328,228 |
The company carries out trade relations only on contractual basis with recognized third parties, that warrants credit financing. The company is closely monitoring the exposure to commercial credit risk.
Financial assets which may subject the Company to collection risk are mainly trade receivables.
The company has implemented a series of policies that ensure that the sale of services is made to customers with a rapid collection. The value of net receivables (without adjustments for impairment) represents the maximum amount at risk of collection.
On December 31st, 2022 the Company holds cash and cash equivalents in amount of 127,672,452 RON (on December 31, 2021: 191,751,271 RON). The availabilities are held by the banks, of which we enumerate Banca Transilvania, BCR, Raiffeisen Bank, BRD Groupe Societe Generale, CEC Bank, Unicredit Bank, Exim Bank, Garanti Bank, First Bank, Credit Europe Bank, etc.)
Credit risk related to trade receivables is low because of the regular collection of transport services. Even though there are significant concentrations, the customer base being extremely low, the management considers that the commercial credit risk is low.
The statement of the seniority of clients’ receivables at the date of preparation of the statements of financial statement is the following:
|
|
| - RON- |
Name | Gross value on December 31st 2022 | Adjustment December 31st 2022 | Net value on December 31st 2022 |
Seniority less than 30 days | 44,918,815 | 4,681 | 44,914,134 |
Seniority between 30 days -60 | 148,344 | 978 | 147,366 |
Seniority between 60 days -90 | 11,108 | 6,376 | 4,732 |
Seniority between 90 days -270 days | 78,557 | 72,595 | 5,962 |
Seniority between 270 days -1 year | 10,590 | 10,590 | - |
More than one year | 127,716 | 127,716 | - |
Total | 45,295,130 | 222,936 | 45,072,194 |
|
|
| - RON- |
Name | Gross value on December 31, 2021 December 31st, 2021 | Adjustment December 31st, 2021 | Net value on December 31, 2021
|
Seniority less than 30 days | 44,049,307 | - | 44,049,307 |
Seniority between 30 days -60 | 75,712 | - | 75,712 |
Seniority between 60 days -90 | 14,736 | - | 14,736 |
Seniority between 90 days -270 days | 6,090 | - | 6,090 |
Seniority between 270 days -1 year | 200 | - | 200 |
More than one year | 120,337 | 120,337 | - |
Total | 44,266,382 | 120,337 | 44,146,045 |
The statement of seniority of other receivables on the time of drawing up the statement of the financial standing is:
|
|
|
| - RON- |
Name | Gross value on December 31, 2022 | Adjustment December 31st 2022 | Gross value on December 31, 2021 | Adjustment December 31st, 2021 |
Seniority less than 30 days | 2,746,967 | - | 4,388,713 | - |
Seniority between 30 days -60 | - | - | 129,570 | - |
Seniority between 60 days -90 | 130 | 130 | 112,384 | - |
Seniority between 90 days -270 days | 30,185 | - | 142,744 | - |
Seniority between 270 days -1 year | 16,808 | 12,500 | - | - |
More than 1 year | 1,697,570 | 1,661,555 | 2,458,264 | 2,458,264 |
Total | 4,491,660 | 1,674,185 | 7,231,675 | 2,458,264 |
The situation of the seniority of fixed assets on the time of drawing up the statement of financial standing is:
|
|
|
| - RON- |
Name | Gross value on December 31, 2022 | Adjustment on December 31, 2022 | Gross value on December 31, 2021 | Adjustment on December 31, 2021 |
Fixed receivables <1 year | 122,717 | 122,717 | 282,466 | 282,466 |
Fixed receivables> 1 year | 2,852,134 | 320,189 | 726,259 | 320,189 |
Total | 2,974,851 | 442,906 | 1,008,725 | 602,655 |
The statement of the seniority of prepayments for services on the time of drawing up the statement of financial standing is:
|
|
|
| - RON- |
Name | Gross value on December 31, 2022 | Adjustment December 31st 2022 | Gross value on December 31, 2021 | Adjustment December 31st, 2021 |
- seniority less than 30 days | 2,101 | - | 2,703 | - |
- seniority between 30 days and 60 days | 365 | - | - | - |
- seniority between 90 days and 270 days | 1,294,625 | - | - | - |
Total | 1,297,091 | - | 2,703 | - |
We hereby mention that, for the prepayments for services in amount of 1,297,091 RON (note 9) there have not been executed adjustments of impairment as the respective receivables have not met maturity.
The movements in the adjustment for impairment of clients’ receivables were the following:
|
| - RON- |
Name | 2022 | 2021 |
Balance on January 1 | 120,337 | 339,307 |
Growths during the year | 104,752 | (204,661) |
Write-backs during the year | (2,153) | (14,309) |
Balance on December 31 | 222,936 | 120,337 |
The movements in the adjustment for impairment of other receivables were the following:
|
| - RON- |
Name | 2022 | 2021 |
Balance on January 1 | 2,458,264 | 2,325,447 |
Growths during the year | 12,630 | 208,685 |
Write-backs during the year | (796,709) | (75,868) |
Balance on January 31 | 1,674,185 | 2,458,264 |
The movements in the adjustments for impairment of long-term receivables were the following:
|
| - RON- |
Name | 2022 | 2021 |
Balance on January 1 | 602,655 | 602,655 |
Growths during the year | - | - |
Write-backs during the year | (159,749) | - |
Balance on January 31 | 442,906 | 602,655 |
(c) Liquidity risk
The liquidity risk is the Company’s risk to face difficulties in the achievement of the liabilities associated with the financial debts that are being settled in cash or by the transfer of other financial asset. The Company’s approach in the liquidity management consists in providing, as much as possible, that it will always dispose of enough liquidities to pay the maturity liabilities, both under normal and stress conditions, without bearing unacceptable losses or endanger the Company’s reputation.
Liquidity risk is managed by the Company’s management by applying a permanent liquidity insurance policy designed to cover the settlement of maturity financial obligations.
|
|
|
| - RON- | |||
2022 | Contractual cash flows | <1 | Over 1 year | Over 5 years | |||
Trade liabilities | 43,914,968 | 43,914,968 | - | - | |||
Liabilities to the employees | 37,433,451 | 14,364,317 | 3,439,960 | 19,629,174 | |||
Other liabilities | 32,314,474 | 29,565,362 | 1,847,870 | 901,242 | |||
Total | 113,662,893 | 87,844,647 | 5,287,830 | 20,530,416 | |||
|
|
|
| - RON- |
| ||
2021 | Contractual cash flows | <1 | Over 1 year | Over 5 years |
| ||
Trade liabilities | 33,435,361 | 32,147,560 | 1,287,802 | - |
| ||
Liabilities to the employees | 28,694,583 | 12,065,900 | 3,286,020 | 13,342,663 |
| ||
Other liabilities | 32,614,355 | 29,155,512 | 2,523,589 | 935,253 |
| ||
Total | 94,744,299 | 73,368,972 | 7,097,411 | 14,277,916 |
| ||
(d) The Personnel Risk and the Waging System
On December 31, 2022, the age categories with the highest weights in the company are those ranging between 51 - 60 years old (52.29%) and between 41-50 years old (27.82%), the age structure being unbalanced.
The average age of CONPET personnel is high (49.4 years old), and the advantage it brings is the work experience accumulated by employees within the company, which indicates stability and professionalism. The average age of the personnel employed in the last two years is of 40.9 years, with an average work experience of 15.3 years.
However, the risk of personnel in the future is the company to deal with personnel shortages due to personnel departures experienced natural causes.
The level of this analyzed risk was low; being a high tolerability risk and for the control thereof have been set medium and long-term measures by way of the personnel policy and the monitoring of the personnel fluctuations (personnel input/output). In this regard, the urgent need of vacant posts occupancy is carefully monitored, according to the needs required by organizational entity, the complexity and diversity of activities, skills needed and the responsibility related to positions.
(e) The Risk Determined by the Correlation with the Global Market Evolution
Identified Risk:
A. Geopolitical risk
The geopolitical turbulences generated by the Russia-Ukraine conflict have determined a significant increase of the perspectives regarding the oil prices, the highest values being reached in the first half of 2022, which later returned to the levels at the beginning of the year. Although it would have a particular impact, it is reckoned that the risk of escalation of the conflict to a regional military one is considered to be low.
B. Oil price volatility risk
At the end of 2022, a high risk of crude oil price volatility was estimated, due to the ceiling imposed on the price of oil and oil products, the demand for oil in the Asian markets (China and India) and the position of the OPEC countries on production and the prospect of a global economic recession for 2023.
C. The Market Risk
Following the embargo, Russian oil exports have been redirected to Asian markets, but China and India will not be able to fully absorb all of the excess production. It is estimated that the market will experience a gap of almost 1 million barrels/day. This was mainly felt at the end of 2022 and will be felt throughout 2023 on the global market.
The war in Ukraine will continue to generate rising inflation, supply chain pressures and changes in the behavior of the global oil market (significant structural disruption of supply and continued price volatility). At the national level, a year 2023 is shaping in which the decrease in domestic production will continue and the compensation will target the imported quantities, given that the refining capacities will be the same.
(f) Capital Market Risk
The Romanian capital market registered a positive evolution during the year 2022, due to the fact that it was the second year since it has acquired the status of emerging market. The daily average liquidity for all types of financial instruments has recorded an upward trend during the analyzed period. Romania’s representativity within the indexes of Emerging Markets has materially increased yoy. Given that the company CONPET S.A. is included in the composition of the FTSE Global Micro Cap index, the risk of reduced liquidity is diminished.
(g) Legislative-related Risks
The frequent amendments of the normative acts, here included those that bear direct impact on CONPET business may trigger risks for the company.
The effort of the company CONPET to constantly adapt to changing legislative requirements may generate additional costs and possible future changes in the legislative framework could have negative effects on the activity and profitability of CONPET (increased taxes, introduction of new taxes and duties, reduction or suspension of tax concessions etc.).
Moreover, a possible increase in the level of the royalty paid for the use of the national Transport System may affect the financial statements and financial projections. An increase of the level of the royalty shall reflect into an augmentation of the transport tariff and, subsequently, the consequences may be seen on two lines: in the decrease of the crude transported quantities and over the pump price of the finite products resulted from the crude oil processing.
An important risk is being represented by the loss of the facility regarding the expenses borne by the Romanian State in order to provide the guard and protection of the pipelines by gendarmes, regulated by GD no.1107 dated November 14, 2012, which amends and complements 1468/2005.
(h) Risk of Disputes
One of the major risks the company is currently exposed to, as concessionaire of the Crude oil, rich gas, ethane and condensate national transport system drives its sources in the legal regime of the lands under/over crossed by the transport major pipelines instituted pursuant to the provisions of Petroleum Law no. 238/2004. The number of private properties under/over crossed by pipelines is very high and there is a possibility that more and more owners bring proceedings in Court against the Company in order to obtain substantiated compensations based on the simple presence of the pipelines on their lands. Due to the defective way in which the legal regime of the lands under/over crossed by the transport major pipelines has been regulated, CONPET was and currently is engaged in a series of trials where the owners of those lands claim for the transport pipelines be either lifted or moved to other sites (and the expense be borne by CONPET), or be granted annual compensations representing consisting amounts of money. Moreover, even some public authorities have laid claim pecuniary about the presence of components belonging to NTS, on the lands owned or managed by them.
Within the last years, the Company has prepared various legislative proposals to amend Law no 238/2004 - Petroleum Law, hoping for a coherent and clear regulation of the legal regime of lands under/over crossed by the transport major pipelines.
(i) Risk related to the Regulation Framework and Permits
The risk related to the regulatory framework and permits is significant given that the company must obtain and periodically renew a series of endorsements, permits and certifications, an aspect that can sometimes lead to additional expenses and/or delays in the start or completion of some works, with possible negative effects.
The core business of CONPET, the transport of crude oil, rich gas and condensate via pipelines and by rail, involves obtaining and/or renewing the authorizations that regulate the company's activity, obtaining construction permits, based on all the necessary approvals for the works in the investment programs, obtaining/renewing licenses and certifications (AFER) for railway shunting activity, etc.
Failure to comply with the regulations could lead to the sanctioning of the company or the suspension of the activity. Keeping this risk under control is done through careful monitoring of the newly emerging legal requirements or changes in applicable regulations, as well as implementing actions necessary to comply with them.
(j) The Market Risk
The Market risk arises from reducing the amount of crude oil transported to the refineries. This makes the utilization of the transport system to be lower. The company must identify new opportunities leading to increased use of the system and adopt solutions for streamlining and optimizing transport activities conducting to maintaining the NTS to a high level of operational security.
The Company is dependent on the level of crude oil processing in Romania and the possibility of intervention in this area lays only in the demand of fuels in the market. The company CONPET can only prove at any time that is capable of providing quality services in the transport of crude oil, rich gas and condensate for any client. In order to ensure this, CONPET must be an active player and permanently interested in the market developments in this area of interest.
Following the petrochemical industry restructuring in Romania, the transport of crude oil derived products (rich gas) has decreased severely, (transport of ethane is no longer made since 2009), which adversely affects the use of the subsystem related to these products.
Given the conditions, by the support of the Ministry of Energy and the National Authority for Mineral Resources (NAMR), CONPET pays efforts to identify new opportunities that lead to the increase of the degree of use of the system, nevertheless involving into regional projects started in its business area.
(k) Operational risk
Operational risk comes from the Degradation of the National Pipeline Transport System due to the low level of utilization (small quantities, reduced frequency) and Escalation of the criminal acts related to pipeline attacks bearing significant impact on the Pipelines National Transport System and on the environment.
In order to keep this risk under control have been set the following measures: redefinition of the transport infrastructure according to demand-side, optimization of pumping programs for the stations with low production, expanding the modernization of pumping stations and continuous monitoring of process parameters and identification of new potential beneficiaries of the services delivered by the company.
(l) The risk caused by pandemic Corona virus (Covid-19)
In addition to the risks mentioned above, the Company CONPET S.A. faced in 2022 risks caused by the COVID-19 pandemic. Ever since the beginning of this situation, CONPET has adopted measures to protect the employees and limit a potential extension of the disease COVID-19. Thus, measures for the prevention and protection in all sites where employees operate have been taken, including: limiting visitor access, which is allowed only in absolutely necessary situations, subject to the rules of disinfection set by CONPET, intensification of actions on prevention and hygiene, limiting internal travel at their workstations, establishing minimum staff for the smooth running of operations and ensure continuity in the transport of crude oil, the light of the pandemic of Corona virus (in Covid-19).
CONPET is a financially stable company that has the ability to quickly and efficiently implement emergency measures to be taken to protect the health of employees as, well as to maintain safe administration of the crude oil National Transport System. In the context of the COVID-19 pandemic, the continuity of the company's activity was ensured.
(m) Environment-related aspects
- Identification of environmental aspects and environmental impact assessment
The environmental impact assessment activity is carried out in the production sectors whenever changes occur in the system involving environmental impact activities, the list of significant impact issues identified at company level being the basis for the development of the Environmental Management Program and the Action Plan for the achievement of environmental objectives.
During 2022, the entire documentation related to the Environmental Management System was reviewed, focusing on the identification of the environmental aspects, the manner of treating the risks and opportunities related to the environmental aspects in order to prevent and reduce the consequences thereof on health and environment, using opportunities for the benefit of the organization as well as the environment. The following documents have been reviewed:
- The Environmental Management Program containing: the commitments associated to the environmental policy, general objectives and measurable environmental targets, the performance indicators on environmental protection, as well as the positions responsible for the achievement of the environmental targets;
- The actions plan for the achievement of the environmental objectives that took into account the significant environmental aspects identified inside CONPET the measures from the inspection reports/protocols - authorities, regarding the compliance with the legal requirements and other applicable requirements;
- List of significant environmental aspects and associated impacts generated at the level of CONPET S.A. company.
- The stage of achievement of the objectives and targets set and the stage of the implementation of the actions set for the achievement of the environmental objectives are analyzed annually by the executive management, in the framework of the analysis carried out by the management.
- Assessments of compliance with legal requirements and other environmental requirements
The assessment of compliance with the legal requirements or other applicable environmental requirements is carried out by:
- inspections carried out by the environmental authorities (representatives of central and local environmental and water management authorities),
- inspections carried out by HSEQ managers and the staff of the Environmental Protection Department.
- external audits carried out by certification bodies of the environmental management system integrated in the company's management system,
- internal audits performed by the internal auditors within the Management Systems and Internal Managerial Control Department.
The environment and water management authorities are carrying out scheduled audits in CONPET sites, unscheduled and thematic with regards to the observance of the legal requirements and other environmental regulations, not having been found major nonconformities.
To verify compliance with the legal requirements, in 2022, were recorded 62 external inspections of the environmental authorities in the counties where CONPET S.A. operates.
The personnel within the sectors, namely the HSEQ responsible perform scheduled inspections, as per the annual Chart of inspection with regards to the compliance of the legal requirements and other applicable requirements, but also unscheduled inspections as per the attributions of the job description.
During 2022, an external audit was carried out by the BUREAU VERITAS certification body, to verify compliance with the requirements of the ISO 14001:2015 standard that refers to the environmental management system. No non-conformities/deviations were found regarding the compliance obligations in this area.
Following the internal audits established in the annual internal audit program, the non-conformities identified in the environmental management system were identified and corrected in time.
- Pollutions bearing significant impact on the environment
During the pumping of crude oil, accidental pollution can occur on the transport pipelines, from internal or external causes, generating pollution of the geological environment that can have a significant impact. Therefore, in 2022 there have been reported accidental pollutions in the areas: Ploiești, Paralela 45, Cioceni, Măgurele, Lukoil, sewage treatment plant, Brazi bridge, Boldești (Prahova county), Porta Albă, Constanța, Castelu, Lumina, Cumpăna (Constanța county), Roata de Jos (Giurgiu county), Călinescu, Livezi ( Gorj county), Gârlești (Dolj county), Olteț river right bank (Olt county), Brezoaele, Gura Ocniței, Petrom station (Dâmbovița county), Popești (Argeș county), Dragoș Vodă (Călărași county).
The expenses made in 2022 for the decontamination of the affected areas have reached 1.74 million RON.
25. Subsequent events and other mentions
There have been not registered significant events ulterior to the conclusion of the financial year.
These financial statements and the related notes, from page 1 to page 62, have been authorized for issue and signed by the company management on March 23, 2023.
Director General |
| Economic Director |
Eng. Dorin Tudora |
| Econ. Sanda Toader |
ANNUAL REPORT
OF THE ADMINISTRATORS
of the Company CONPET S.A.
for the financial year ended
on
December 31, 2022
CONTENTS
MESSAGE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS
1.4 The company’s mission, vision and values
1.7 Development Strategic Objectives
2. RELEVANT CORPORATE EVENTS IN 2022 AND TO DATE
3. CONPET 2022 - EXECUTIVE SUMMARY
3.1. Operating Activity Indicators
3.2. Financial Results Indicators
3.3. Investment Activity Indicators
3.4. Company’s Stock Market Indicators
4. ANALYSIS OF THE COMPANY’S BUSINESS
4.1 Analysis of the operating activity
4.1.1 The regulatory Framework
4.1.2 The crude oil, condensate, rich gas and ethane transport activity
4.1.4. Analysis of the operating activity
4.1.5. Analysis of the supply activity
4.1.6. Legal acts concluded under the provisions of Art.52 Para (1) and (3) of GEO no. 109/2011
4.1.7. Company mergers and reorganizations, procurements and disposals of assets
4.1.8. Implementation/development of the internal control management system
4.1.10. Internal and external audit
4.1.11. Assessment of human resources and social dialog activity
4.1.12. Analysis of the HSEQ activity
4.2. Analysis of the corporate activity
4.2.1. Main components of the NTS infrastructure.
4.2.2. The wear degree of the company’s properties
4.2.3. Investments achieved in 2022
4.2.5. Disputes and other aspects on the company’s tangible assets
4.3. Analysis of the financial activity
4.3.1 Statement of the Financial Standing
4.3.2. The global result statement
4.3.3 Economic-Financial Indicators
4.3.4 Execution of the revenues and expenditure budget
4.3.6. The internal control and the risks management systems in the financial reporting process
Procurement from affiliated parties
4.4 Analysis of the corporate activity
4.4.3. The Executive Management
5. NON-FINANCIAL STATEMENT FOR THE YEAR 2022
6. PROPOSAL OF THE BOARD OF DIRECTORS
6.1 Approval of the financial statements concluded at 31.12.2022
6.2 Approval of the allocation of net profit related to the financial year 2022
Esteemed shareholders,
Esteemed investors,
CONPET is a well-established company within the energy sector, whose professionalism, stability and performance represent assets on which its customers, shareholders, investors and the Romanian society in general have been relying on, for over 30 years.
2022 was a very good year for CONPET, both in terms of financial results, investments and particularly important projects that we managed to accomplish, as well as in terms of the professional development of our employees and the ever-growing involvement that we have within the community.
We’ve managed to overcome the pandemic period with a positive experience, in the end. CONPET’s management, alongside the over 1500 employees that stood united as a team, responded to the challenges that arose throughout those two years with tremendous responsibility, professional rigor, and the ability to quickly adapt, enabling the company to continue to provide its clients with the same services at high standards of quality and safety, without syncope. Given the amount of experience we have accumulated, we are even more confident in our company's ability to perform and continuously evolve.
Therefore, in 2022 we persevered with the plans and strategies we set at the beginning of the year and successfully achieved our established goals.
Compared to the previous year, we recorded a net profit of 61.7 million RON, 18.9% higher and a turnover of 472.2 million RON, up by 14.4% compared to the previous year. At the same time, the transport revenues increased by 14.5% compared to 2021.
CONPET also maintained in 2022, the position of major player on the local capital market. Currently included in 7 stock indexes (out of a total of 9), indicating economic and financial stability, transparency, visibility and maintaining increased investor interest, CONPET reached a capitalization of 587 million RON (67.80 RON/share on 31.12.2022).
The realization of the investments scheduled for 2022 represented one of the general objectives that the company's management constantly monitored.
We feel it’s important to mention, with priority, that over the course of 2022, CONPET made a particularly important investment through the project "Replacement of connecting lines crossing the Danube C1-C2 and the Borcea arm C3-C4", an investment to be completed and put into operation in the first semester of 2023.
In a world context marked by institutional concerns to combat climate change, the construction of new pipelines to under cross the Danube and the Borcea arm will lead to the improvement of the quality of environmental factors by ensuring the operation of crude oil transport pipelines in safe conditions and avoiding potential damages that may occur to them.
CONPET has adopted an environmental policy integrated with the policy related to quality, health and safety at work and in accordance with the principles of sustainable development, being aware that the responsibilities towards the environment are inextricably linked to the envisaged performances.
CONPET also shows a constant concern for the well-being of its employees. Professional development and improvement, health maintenance, salary increase, ensuring an optimal balance between professional and personal life are priorities that have been preserved and improved in 2022.
Corporate Social Responsibility (CSR) holds an increasingly important place within CONPET. At the heart of the concerns aimed at the internal dimension of CSR is the training of employees in the spirit of the company's organizational culture and keeping them connected to the company life, to news and events that take place in all workplaces. Thus, through internal communications, the internal newspaper "CONPET Information" and social media communication channels, CONPET keeps its employees informed and aware that they are part of an organization with solid principles, with a professional and ethical mission to which they must adhere with responsibility and whose message they themselves can pass on with pride.
We are aware of the role and influence we can have within the community and the example we can set, through the principles we promote and the actions we undertake. Already recognized for its involvement through sponsoring actions, social responsibility, and environmental protection, CONPET has also paid increased attention in 2022 to the support of major projects in the sectors: medical-sanitary, education, sports, social and cultural, carried out both in rural and urban areas.
The premiere of 2022 was represented by the first Blood Donation Campaign by CONPET employees. Carried out in collaboration with the Ploiești Blood Transfusion Center, the action proved a success through the great involvement of the employees, materialized in a gesture of empathy and solidarity, in the context in which Romania is facing a critical situation in the field.
My message has touched on some general aspects but could not cover all the actions and achievements of 2022. However, I can confidently state that each of these constitutes a constant of the professional services that CONPET offers, a confirmation of performance, as well as an ever-increasing concern for evolution and adaptation to the challenges of the energy field that have recently intensified and which we feel prepared to face.
Sincerely yours,
CRISTIAN - FLORIN GHEORGHE
CHAIRMAN OF THE BOARD OF DIRECTORS
The Annual Report of the Board of Directors of CONPET SA for the year ended December 31, 2022, was prepared in accordance with:
- | Chapter 3 of the Minister of Public Finances’ Order no. 2844/2016 for the approval of the accounting Regulations compliant with the International Financial Reporting Standards; |
- | Article 65 of Law no. 24/2017, republished, regarding the issuers of financial instruments and market operations; |
- | Annex no.15 on the requirements of the Annual Report, from Regulation no. 5/2018 regarding the issuers of financial instruments and market operations issued by the Financial Supervisory Authority; |
- | Art. 56 of the Government Emergency Ordinance no. 109/2011 on the corporate governance of the public enterprises, subsequent amendments and supplementations; |
- | Chapter VI Art. 7 regarding the Administrator’s Obligations provided in the Mandate Contracts concluded between the administrators and CONPET S.A.; |
- | Art. 20 Para (1) letter (e) of CONPET S.A. Articles of Incorporation |
1.2. Substantiation data
Date of the report | March 23, 2023 |
Issuer’s Name | CONPET S.A. |
Registered Offices | No. 1-3 Anul 1848 Street, Ploiesti, Prahova County, Zip Code 100559, |
Telephone/facsimile number | 0244 401360/0244 516451 |
E-mail/Internet | conpet@conpet.ro / www.conpet.ro |
Trade Identification Number at the Trade Register Office | 1350020 |
Trade Registry Number | J29/6/22.01.1991 |
The regulated market trading the issued securities | Bucharest Stock Exchange, Premium category |
Subscribed and paid-up share capital | 28,569,842.40 RON |
Main features of the issued securities | 8,657,528 shares with a nominal value of 3.3 RON/share. Dematerialized, nominative, ordinary, indivisible, freely tradable shares as of 05.09.2013, under COTE symbol ISIN:ROCOTEACNOR7 |
Total market value | 586,980,398 RON (67.80 RON/share on 31.12.2022) |
Applied accounting standard | The International Financial Reporting Standards |
Auditing | The Financial Statements concluded on December 31, 2022 have been audited |
CONPET is a strategic company, part of the architecture of the national energy system, being the operator of the crude oil national transport system via pipelines.
Since 2002, CONPET is the concessionaire of the operation of the crude oil, rich gas, condensate and ethane National Transport System, based on the oil Concession Agreement concluded with the National Agency for Mineral Resources, approved pursuant to GD no. 793/25.07.2002.
The Crude Oil, Rich Gas, Condensate and Ethane National Transport System (NTS) is being defined and regulated by the Petroleum Law no. 238/07.06.2004 and the Methodological Norms for the enforcement of the Petroleum Law, approved under GD no. 2075/2004 and is part of the state’s public property, being of strategic importance.
CONPET mission consists in the operation of the National Transport System via Pipelines under safe and secure conditions, free access to the system’s available capacity to all the inquirers, authorized legal persons, under equal conditions, on a non-discriminatory and transparent basis as well as accessing the related markets corresponding to the segments of the value chain of the oil industry.
CONPET vision targets the maintenance of its position of strategic player in the Romanian oil industry, acting as crude oil, ethane and rich gas carrier by pipelines and by rail.
Company’s Values:
- | ongoing learning and improvement; |
- | concern for people and environment; |
- | openness and quality improvement; |
- | flexibility and dynamism; |
- | communication and cooperation. |
CONPET is a publicly owned company, listed at the Bucharest Stock Exchange, under COTE symbol.
The synthetic structure of the Shareholders, on reference date 31.12.2022, is as follows:
-- 58.7162% - the Romanian State by the Ministry of Energy;
-- 41.2838% - Other shareholders natural and legal persons.
Chart 1 - CONPET S.A. Shareholding Structure on 31.12.2022
The number of CONPET Shareholders registered at Depozitarul Central S.A. at the end of 2022, is 15,408, 11.9% higher than the end of 2021 (13,774 shareholders).
The share capital of CONPET on 31.12.2022 is 28,569,842.40 RON and is divided into 8,657,528 nominative shares, each share with a nominal value of 3.3 RON/share.
CONPET did not perform transactions having as scope its own shares and, consequently, the company does not hold own shares.
The Company CONPET S.A. was established in 1990, based on the Government Decision no. 1213/1990 regarding the set-up of joint-stock companies in the industry, by taking-over the entire assets and liabilities of I.T.T.C. Ploieşti, being the first company established in the oil industry in Romania.
Following the take-over of all assets and liabilities of I.T.T.C. Ploiești, CONPET became the operator of the crude oil, rich gas, condensate, and ethane National Transport System.
The crude oil, rich gas, condensate and ethane National Transport System (NTS) is part of the State’s public property and bears strategic importance. The NTS is being defined and regulated pursuant to the Oil Law no. 238/07.06.2004 and the Methodological Norms for the Application of the Oil Law, approved pursuant to G.D. no. 2075/2004.
CONPET supplies transport services for its clients via both the National Transport System, conceded under the Concession Agreement and by rail, from the loading ramps to the refineries, for the oil areas which are not connected to the major transport lines.
The strategic objectives established and assumed by the administrators though the Administration Plan, for the period 2018-2022, were defined in strong correlation with the strategic directions, the vision and expectations of the tutelary authorities, namely the ones of the shareholders, and the contextual lines of the Energy Strategy of Romania along 2018-2030, envisaging the years 2050.
The strategic objectives are:
- | boost efficiency and improve the activity performance; |
- | develop new activities, related and non related to the core business; |
- | define the Company as a regional player; |
- | outstanding management of the human resources; |
- | implementation and development of the corporate government principles. |
February 25, 2022
The Ordinary General Meeting of Shareholders approved the Revenues and Expenditure Budget for 2022.
April 28, 2022
The Ordinary General Meeting of Shareholders approved the Annual Financial Statements on the date and for the financial year ended on 31.12.2021. In the same meeting, the OGMS approved the distribution of the net profit for the financial year 2021 and of some amounts in the retained earnings.
April 28, 2022
The Extraordinary General Meeting of Shareholders approved the initiation of the procedure regarding the augmentation of the share capital of CONPET S.A. by the value of the land plots related to the 48 land ownership certificates and the amendment of the Articles of Incorporation of the Company "CONPET" S.A..
May 24, 2022
The Ordinary General Meeting of Shareholders approved the transaction with SNTFM” C.F.R. MARFĂ”, having as object the increase of the transport tariff, respectively of the estimated value of the contract.
August 18, 2022
The General Meeting of Shareholders approved the provisional members of the Board of Directors for a maximum period of 4 months, until December 21, 2022 (inclusive of), with the possibility of extending the mandate by another 2 months.
September 20 - 21, 2022
The Extraordinary General Meeting of Shareholders was held, in first call, on September 20, 2022 and in the second call, on September 21, 2022, with the agenda: Approval of the augmentation of the share capital by the maximum value of 129,454,564.80 RON representing contributions in kind (land plots) amounting to 76,010,810.70 RON and cash amounting to maximum 53,443,754.10 RON, from the current value of 28,569,842.40 RON to a maximum of 158,024,407.20 RON. The Extraordinary General Meeting of Shareholders has ascertained that neither in first call (September 20th), nor in the second (September 21st), the presence quorum provided by law necessary to decide the augmentation of the share capital by contribution in kind defined based on the land ownership certificates has been met.
October 28, 2022
The Ordinary General Meeting of Shareholders approved the appointment of PKF Fincota S.R.L. as financial auditor of the company.
The Ordinary General Meeting of Shareholders approved the rectified Revenues and Expenditure Budget for 2022.
At the same meeting, within the Board of Directors have been appointed the provisional administrators, on the vacant seats within the Board of Directors, starting with 28.10.2022 until 21.12.2022 (inclusive of).
December 14, 2022
The Ordinary General Meeting of Shareholders approved the extension of the term of office of the provisional administrators of the company, respectively from 22.12.2022 until 21.02.2023 (inclusive of), or until the completion of the selection procedure provided for in GEO no. 109/2011, on the corporate governance of public enterprises.
February 17, 2023
The Ordinary General Meeting of Shareholders approved the appointment of the provisional administrators for the vacant positions within the Board of Directors, starting with 22.02.2023, as a result of the termination of mandates by the expiry of their duration. The duration of the mandate of the provisional Board of Directors mandate will be of maximum 4 months, starting 22.02.2023 and until 21.06.2023 (inclusive of), in accordance of art. 64^1, para (5) of the GEO no.109/2011 or until the completion of the recruitment and selection procedure provided for in GEO no.109/2011 on the corporate governance of public enterprises, if it takes place earlier than 4 months after the appointment by the OGMS.
During the same meeting, the Ordinary General Meeting of Shareholders approved the Investments Program and the Revenues and Expenditure Budget for 2023.
The comparative situation of the quantities of products (crude oil, condensate and rich gas) transported via the National Transport System (NTS) and the revenues achieved, by transport subsystems in the period 2020-2022 is shown below:
M.U. | 2022 | 2021 | 2020 | Variation% | ||
2022/2021 | 2021/2020 | |||||
Total transported quantities | Thousand tons | 7,100 | 6,651 | 6,685 | ▲ 6.8% | ▼0.5% |
Total transport revenues | Million RON | 469.9 | 410.5 | 402.8 | ▲ 14.5% | ▲ 1.9% |
Table 1 - Evolution of the transported quantities and transport related revenues during 2020 - 2022
Chart 2 - Evolution of the quantities transported on the domestic and import subsystems between 2020 -2022 | Chart 3 - Evolution of the revenues related to the transport on the domestic and import subsystems between 2020 -2022 |
The economic and financial activity of CONPET SA in 2022 was performed based on the indicators included in the revenues and expenditure budget.
The comparative evolution of the main indicators of financial results in the period 2020-2022, as well as the change in the values recorded in 2022 vs. budget, is presented as follows:
2022 | Variation (%) 2022/ Budget | Indicators (mRON) | 2022 | 2021 | 2020 | Variation% | ||
Achieved | Budget | 2022/2021 | 2021/2020 | |||||
472.2 | 471.6 | ▲ 0.1% | TURNOVER | 472.2 | 412.8 | 406.9 | ▲14.4% | ▲ 1.4% |
522.1 | 521.1 | ▲ 0.2% | Operating revenues, o/w: | 522.1 | 458.4 | 447.6 | ▲13.9% | ▲ 2.4% |
469.9 | 469.3 | ▲ 0.1% | Transport revenues | 469.9 | 410.5 | 402.8 | ▲14.5% | ▲ 1.9% |
459.3 | 472.2 | ▼ 2.7% | Operating Expenses | 459.3 | 400.7 | 382.6 | ▲14.6% | ▲ 4.7% |
62.8 | 48.9 | ▲ 28.4% | EBIT (operating profit) | 62.8 | 57.7 | 65.0 | ▲ 8.8% | ▼11.2% |
53.1 | 55.5 | ▼ 4.3% | Value adjustments on fixed assets, less adjustments related to rights of use resulted from leasing contracts | 53.1 | 51.9 | 47.4 | ▲ 2.3% | ▲ 9.5% |
115.9 | 104.4 | ▲ 11.0% | EBITDA | 115.9 | 109.6 | 112.4 | ▲ 5.7% | ▼ 2.5% |
9.3 | 7.1 | ▲ 31.0% | Financial Result | 9.3 | 3.1 | 5.4 | ▲200.0% | ▼42.6% |
72.1 | 56.0 | ▲ 28.8% | EBT (gross profit) | 72.1 | 60.8 | 70.5 | ▲18.6% | ▼13.8% |
61.7 | 47.7 | ▲ 29.4% | NET PROFIT | 61.7 | 51.9 | 60.8 | ▲18.9% | ▼14.6% |
Table 2 - Evolution of the results from the operating and financial activity 2020-2022 and 2022 vs Budget.
Chart 4 - Analysis of the indicators achieved in 2022 as compared to Budget.
Chart 5 - Analysis of the indicators achieved in 2022 as compared to 2021
The turnover achieved in 2022, amounting to 472.2 mRON is increasing by 14.4% as compared to the level registered in 2021.
The operating profit of 62.8 million RON increased by 28.4% compared to the budget (13.9 million RON). As compared to 2021, the operating profit registered an increase by 5.1 mRON.
The company concluded the year 2022 with a net profit in amount of 61.7 mRON, 14 mRON above the budgeted level and 9.8 mRON over the level registered in 2021.
CONPET is a company paying substantial contributions to the consolidated State budget. The total amount paid in 2022, to the account of the state budget, was of 163 million RON, out of which, the most important are:
VAT | 44 mRON |
Tax on salaries and related contributions | 69 mRON |
Corporate tax | 12 mRON |
Oil royalty | 35 mRON |
The investment program related to 2022 included rehabilitation works of major transport pipelines and investment works for installations and related equipment to the Crude Oil National Transport System.
The investment projects target both enhancing efficiency of the transport activity as well as operation, under safe conditions, of the National Transport System.
From the modernization quota, CONPET finances investments provided in the rehabilitation, modernization and development programs, agreed with the National Agency for Mineral Resources, according to the “Petroleum concession agreement for the operation of the national transport system of crude oil, rich gas, condensate and ethane, including the main pipelines and the ancillary installations, endowments and facilities”.
In 2022, have been achieved investments amounting 148,712 thousand RON, as compared to a program of 152,000 thousand RON, reaching 97.8% degree of achievement. Compared to the previous year, the evolution of the investments increased by 134.1%.
2022 | Degree of achievement | Investments (Thousand RON) | 2022 | 2021 | 2022/2021 (%) | |
Program | Achieved | |||||
152,000 | 148,712 | 97.8% | Total investments, o/w: | 148,712 | 63,536 | 234.1% |
140,000 | 137,008 | 97.9% | Public domain | 137,008 | 45,596 | 300.5% |
12,000 | 11,704 | 97.5% | Operating domain | 11,704 | 17,940 | 65.2% |
Table 3 - Investments achieved in 2022 vs program and the year 2021
The level of investments during 2020-2022 amounted to 297mRON and is the following:
Investments | MU | 2022 | 2021 | 2020 | Total |
Total investments, o/w: | Thousand Ron | 148,712 | 63,536 | 84,415 | 296,663 |
Public domain | Thousand Ron | 137,008 | 45,596 | 69,396 | 252,000 |
Operating domain | Thousand Ron | 11,704 | 17,940 | 15,019 | 44,663 |
Replaced pipeline | Km | 28.5 | 13.1 | 29.4 | 71 |
Table 4 - Investments achieved during 2020-2022
Chart 6 - Share of investments by financing sources in 2022 and 2021
The market capitalization amounted to 586.98 million RON (67.80 RON/share) at the end of 2022, lower than in 2021 when it was registered the amount of 683.94 million RON (79.00 RON/share).
The evolution of COTE share and market capitalization during 2020 - 2022 is as follows:
Indicators | MU | December 31, 2022 | December 31, 2021 | December 31, 2020 |
COTE closing price | RON/share | 67.80 | 79.00 | 76.20 |
Market capitalization | Million RON | 586.98 | 683.94 | 659.70 |
million Euro | 118.64 | 138.21 | 135.48 |
Table 5 - Evolution of COTE share and stock capitalization during 2020 - 2022
Currently, the company CONPET S.A. is included in 7 out of the total of 9 stock indices, respectively in BET, BET-TR, BET-XT, BET-XT-TR, BET-BK, BET-NG and BET Plus.
The net profit per share is of 7.12 RON/share in 2022, higher by 1.12 RON as compared to 2021.
CONPET SA is the operator of the crude oil, rich gas, condensate and ethane National Transport System (NTS). The transport service is being supplied under the natural monopoly regime based on the tariff set by NAMR.
The NTS is being defined and regulated pursuant to the Oil Law no. 238/7.06.2004 and the Methodological Norms for the Application of the Oil Law, approved pursuant to GD no. 2075/2004.
CONPET S.A. supplies transport services for its clients both via NTS according to the Oil Concession Agreement of the National Transport System of crude oil, gasoline, condensate and ethane, as well as by rail, from the loading ramps to the refineries, for the oil areas not connected to the transport major pipelines.
The NTS was built taking into account the natural distribution of the oil fields, so as to ensure the transport of crude oil from all these fields to the refineries. The system operation is being made based on the local dispatch centers, coordinated from the Company’s Central Dispatch.
The pipeline network of the NTS is approximately 3,800 km long, currently being used a pipeline network of 3,161 km.
The Crude Oil, Rich Gas, Condensate and Ethane Transport System has in composition more transport subsystems, as follows:
- | The domestic crude oil and condensate transport subsystem, having in composition pipelines covering approx.1,540 km, for the transport of crude oil and condensate from the extraction plants throughout the country to the refineries. The domestic crude oil and condensate production is transported via pipelines, by railway tanks, or combined (rail and pipelines). |
- | The rich gas transport subsystem is meant for the rich gas transport from the rich gas separation units in Ardeal (Biled and Pecica) to Petrobrazi refinery. |
- | The ethane transport subsystem provides the ethane transport from Turburea ethane separation platform to Arpechim Pitesti refinery. Currently, due to the inactivity of the Arpechim refinery, the subsystem is used only on the pipeline section linking Totea warehouse to Petrobrazi refinery, for the transport of condensate. |
- | The import crude oil transport subsystem ensures the transport of crude oil from the Oil Terminal Constanta to the refineries in Ploiești(Petrobrazi și Lukoil), Arpechim-Pitești and Midia. |
For the crude oil, rich gas, condensate and ethane transport service, CONPET has to develop, on an annual basis, a proper transport program so as to provide free access to the available capacity of the system to all applicants, authorized legal persons, under equal conditions, on a non-discriminatory and transparent basis.
The available throughput represents the difference between the total physical throughput of the system and the crude oil scheduled for transport in the given year.
The transport contracts signed with the beneficiaries of the services are compliant with the regulated frame-contract approved by NAMR and provides the legal framework for the supply of the transport services.
The transport of the crude oil quantities is being performed from the sites of products delivery by the producers or importers, from the extraction areas, or from Oil Terminal to the processing units (refineries), using the facilities inside the pumping stations and the receiving sites.
These facilities shall consist of crude oil and condensate storage tanks, storage tanks for the storage of rich gas, technological pipes from the pumping/receipt warehouses, pumping aggregates, major pipelines, crude oil and rich gas loading and unloading ramps, rail tank cars.
The transported volume, by products - crude oil, rich gas and condensate, programmed and achieved in 2022 and the extent of use of the transport capacity, is as follows:
Indicators and products | 2022 | 2021 | 2020 | Variation (%) 2022/2021 | |
DOMESTIC | Domestic crude oil, condensate and light condensate | ||||
- programmed quantities (thousand tons) | 3,058 | 3,260 | 3,442 | ▼ 6.2% | |
- achieved quantities (thousand tons) | 3,045 | 3,222 | 3,383 | ▼ 5.5% | |
- degree of achievement | 99.6% | 98.8% | 98.3% | + 0.8 p.p. | |
- degree of use of the transport throughput | 49.2% | 52.1% | 55.3% | - 2.9 p.p. | |
rich gas | |||||
- programmed quantities (thousand tons) | 9 | 16 | 18 | ▼ 43.8% | |
- achieved quantities (thousand tons) | 17 | 19 | 18 | ▼ 10.5% | |
- degree of achievement | 188.9% | 118.8% | 100% | +70.1 p.p. | |
- degree of use of the transport throughputs | 24.7% | 26.6% | 15.5% | +1.9 p.p. | |
Total domestic subsystem | |||||
- programmed quantities (thousand tons) | 3,067 | 3,276 | 3,460 | ▼ 6.4% | |
- achieved quantities (thousand tons) | 3,062 | 3,241 | 3,401 | ▼ 5.5% | |
- degree of achievement | 99.8% | 98.9% | 98.3% | + 0.9 p.p. | |
- degree of use of the transport throughputs | 49.0% | 51.8% | 54.5% | - 2.8 p.p. | |
IMPORT | crude oil | ||||
- programmed quantities (thousand tons) | 4,039 | 3,244 | 3,346 | ▲ 24.5% | |
- achieved quantities (thousand tons) | 4,038 | 3,410 | 3,284 | ▲ 18.4% | |
- degree of achievement | 99.9% | 105.1% | 98.1% | -5.2 p.p. | |
- degree of use of the transport throughputs | 34.2% | 28.9% | 27.8% | + 5.3 p.p. | |
TOTAL | - programmed quantities (thousand tons) | 7,106 | 6,520 | 6,806 | ▲9.0% |
- achieved quantities (thousand tons) | 7,100 | 6,651 | 6,685 | ▲ 6.8% | |
- degree of achievement | 99.9% | 102.0% | 98.2% | - 2.1 p.p. | |
- degree of use of the transport throughputs | 39.3% | 36.8% | 37.1% | + 2.5 p.p. | |
Table 6 - Transported quantities by types of products between 2020-2022
The degree of use of the transport system in 2022 was up by 2.5 p.p. as compared to 2021, due to the increase, by 449 thousand tons, in the transported quantities.
Of the total transported and delivered volumes of crude oil, condensate and rich gas from domestic production, 1,047 thousand tons (34.2%) were transported by rail.
The evolution of the standardized technological consumption per products as recorded between 2020 - 2022, is as follows:
Table 7 - The evolution of the technological standardized consumption as compared to the achieved during 2020-2022
Chart 7 - Evolution of the technological consumption per products between 2020-2022
The technological consumptions recorded during transport are within the allowable limits, provided in the transport contracts.
The tariffs for the supply of crude oil, rich gas, condensate and ethane are regulated and approved by the NAMR and are distinguished for each transport subsystem.
The tariffs applied for the import transport subsystem vary according to the installment of transported quantity, being practiced the bracketing tariff model and the refinery - the hand -over site. In 2021 and 2022, the following tariffs were applied:
- Tariffs from transport services on Domestic Subsystem
Period | M.U. | Transport Tariffs | Approved by NAMR Order no. |
December 31, 2019 - February 7, 2021 | RON/ton | 87.53 | 427/2019 |
February 8, 2021 - December 31, 2021 | RON/ton | 91.03 | 19/2021 |
January 1, 2022 - December 31, 2022 | RON/ton | 105.50 | 229/2021 |
Table 8 - Transport tariffs Domestic Subsystem
- Tariffs for transport services on the Import Subsystem
Period | Batches | Arpechim Refinery | Ploiesti Basin *) | Petromidia Refinery |
Approved by NAMR Order no. |
thousand tons/month | RON/ton | RON/ton | RON/ton | ||
December 31, 2019 - February 7, 2021 | <120 | 40.40 | 39.50 | 15.00 | 427/2019 |
> 120 | 17.25 | 17.00 | 12.85 | ||
February 8, 2021 - December 31, 2021 | <120 | 42.00 | 40.90 | 16.50 | 19/2021 |
> 120 | 17.90 | 17.60 | 14.40 | ||
January 1, 2022 - December 31, 2022 | <80 | 46.65 | 45.66 | 18.51 | 229/2021 |
80-120 | 37.32 | 36.53 | 14.81 | ||
120-160 | 27.99 | 27.39 | 11.11 | ||
> 160 | 21.00 | 20.55 | 8.33 |
*) Petrobrazi Refinery and Lukoil Refinery
Table 9 - Transport tariffs import subsystem
The transport tariffs include a modernization quota meant exclusively for the financing of the investments related to the National Transport System.
The company holds a monopoly position on the transport via pipelines market, not having competitors in its main area.
The transport services are being contracted concluded with the clients, based on a frame contract annually approved by the National Agency for Mineral Resources.
Revenues from the provision of transport services and invoiced to beneficiaries increased by 14.5% compared to 2021, reaching the value of 469.9 million RON.
The income statement for each client and their share in the total transport revenues are as follows:
Chart 8 - Evolution of transport revenues by clients in 2022 and 2021
The transport services supplied by the company are addressed to a reduced number of clients, the volume thereof is closely related to the trade policy applied by the beneficiaries of the supplied services.
The revenues from the transport services supplied for OMV Petrom account for 80.4% in the total transport revenues of the company.
The revenues from other activities hold a share of 0.5% in turnover increasing by 2.9% (66 thousand RON) compared to 2021, coming from leases of lands and telecommunication equipment, rail shunting, etc.
In the table below is presented the evolution of the transport services supply and other services, for the period 2020-2022:
M.U. | 2022 | 2021 | 2020 | Variation 2022/2021 | Variation 2021/2020 | |
Revenues from transport services domestic subsystem | Thousand Ron | 324,770 | 296,280 | 299,928 | ▲9.6% | ▼ 1.2% |
Revenues from transport services import subsystem | Thousand Ron | 145,087 | 114,197 | 102,857 | ▲27.0% | ▲11.0% |
Total revenues from transport services | Thousand Ron | 469,857 | 410,477 | 402,785 | ▲ 14.5% | ▲ 1.9% |
Revenues from rents | Thousand Ron | 1,966 | 1,633 | 1,633 | ▲20.4% | - |
Other revenues | Thousand Ron | 410 | 677 | 2,510 | ▼ 39.4% | ▼73.0% |
Turnover | Thousand Ron | 472,233 | 412,787 | 406,928 | ▲ 14.4% | ▲ 1.4% |
Table 10- Evolution of turnover revenues during 2020 - 2022
Chart 9 The evolution in turnover 2020 - 2022 (thousand RON)
In 2022 the turnover recorded an increase by 14.4% as compared to the level achieved in 2021.
Transport revenues hold a share of 99.5% in total turnover, the remaining 0.5% is revenues from renting land and telecommunications equipment and from shunting wagons.
The procurement activity
The procurement activity performed in compliance with the provisions of CONPET S.A. Internal Procurement Norms and other internal procedures.
During January-December 2022 have been initiated 118 procurement procedures requested by the Company entities and have been concluded 117 contracts in total amount of 48,505 thousand RON and 988 thousand Euro.
The contracts for the procurement of products and works with a value higher than 500,000 euros and services procurement contracts with values higher than 100,000 Euro, concluded between 01.01.2022 and 31.12.2022, were presented in the form of annexes to the preliminary report drawn up for the year 2022, uploaded on the CONPET website on February 27, 2023.
On 25.05.2022, was concluded the Addendum no. 4 to the S-CA contract no. 57/28.03.2019, concluded with S.N.T.F.M.” C.F.R. Marfă S.A., having as scope the supply of railway transport services of crude oil and rich gas. Through the Addendum, the transport tariff and the estimated value of the contract increased by the amount of 3,483,766 RON. The transaction with S.N.T.F.M.” C.F.R. Marfă S.A. was approved by the company’s shareholders in the OGMS meeting dated 24.05.2022.
The contract duration is of 4 years, starting 01.04.2019 up to 31.03.2023, inclusive of.
The performance guarantee is in quantum of 500,000 RON and the payment date is 30 days from the invoice receipt. In the contract was provided also the calculation of delay penalties as follows:
- In case the company CONPET S.A. does not honor the invoices within the payment deadline provided in the contract, it has the obligation to pay penalties in quantum of 0.03%/day, calculated at the outstanding amount, starting the first day of the maturity date.
- In case the Supplier S.N.T.F.M.” C.F.R. Marfa S.A. does not provide the rail tanks necessary for the achievement of the respective transport program, for the delay by more than one day compared to the schedule, CONPET S.A. is entitled to claim penalties in quantum of 0.03%/day, calculated at the value of the transport service related to the outstanding quantity, not taken over, starting the first day of delay.
During the financial year 2022 there were no mergers and there have not been made purchases or alienations of fixed assets consisting of buildings and lands.
The Company purchases tangible and intangible assets, which are intended for carrying out and modernizing the transport activity, based on the investment program and the budget of revenues and expenses approved for the year 2022.
The company has no open subsidiaries in Romania or abroad.
The internal control management system
The company CONPET S.A., defined as a public entity in accordance with the Order of the Secretary General of the Government No. 600/2018, applies the Code of the internal control management of public entities approved by the aforementioned legislation.
CONPET S.A. does annual self-assessments of the degree of implementation of the internal control management standards and reports in accordance with the legal requirements.
According to the provisions of OGSG no. 600/2018 for approving the Internal Control Management Code of public entities, the Monitoring committee of the internal control management system was appointed, by decision of the Director General, updated during 2021, having regard to changes in the organizational structure.
The Monitoring committee of the internal control management system has the following duties:
- | Draws up the Development Program of the internal control management system covering the objectives of CONPET SA in internal control management, including, for each standard of internal control management, activities, officers in charge and deadlines, as well as other relevant elements in implementing and developing the internal control management system. |
- | Aims to achieve and provides upgrade of the development program of the internal control management system; |
- | Coordinates the process of updating the general and specific objectives, the procedure activities, the risk management process, the system performance monitoring, the procedure situation and the monitoring and, respectively information to the Director General. |
- | Analyzes and gives priority to significant risks, that might affect achieving the objectives of CONPET S.A., by establishing the risk profile and risk tolerance. |
- | Analyzes and endorses annually the risk profile and the risk tolerance limit proposed by the technical secretariat based on the Risk Registry within CONPET S.A. and submits to approval of the Director General. |
- | Analyzes the annual plan of implementation of the control measures for the significant risks within CONPET S.A., drafted by the technical secretariat and submits to the approval of the Director General. |
- | Informs the Director General regarding the deployment of carrying out the risk management process and performance monitoring at CONPET S.A. level. |
- | Analyzes the annual report on internal control management system and submits it for the approval to the Director General. |
- | Analyzes and endorses the Report on the status of the implementation of the actions included in the Internal Managerial Control System Development Program. |
The Commission shall cooperate with all organizational entities to implement and develop the internal control management system. Each member of the Monitoring Committee is responsible for fulfilling the tasks from the development program of the internal control management system and for the settled deadlines met.
The Internal Audit Office shall advise the Monitoring Commission and attends its meetings. The Internal Public Audit monitors the activities of the Monitoring Commission and regularly informs the Director General on the activity of the Monitoring Committee and the problems they are facing it and which may affect the process of implementing and maintaining the internal control management system.
The Development Program of the internal control management system of CONPET is analyzed annually, on the self-evaluation of the implementation degree, according to OGSG no. 600/2018. The development program of the internal control management system of CONPET S.A. for 2022 was approved by the Director General on 18.02.2022. The program was revised three times during 2022, as follows:
- | including the review action of the Code of Ethics and Integrity with a deadline 2022 Q3; |
- | update of the organizational chart in force starting with16.05.2022; |
- | introducing action to review the Inventory of Sensitive Functions. |
According to the provisions of the system procedure “Setting the objectives of CONPET S.A.”, SMART objectives have been set for 2022, at the level of all organizational entities.
In 2022, meetings of all risk management teams (EGR) were held, in which each team reassessed the risks corresponding to the established objectives and analyzed the status of the implementation of the control measures due and, where appropriate, were revised these risks, corresponding to the organizational change of 16.05.2022, respectively the update of the applicable specific objectives. Control measures have been proposed to mitigate risks, as well as deadlines for their implementation, according to the provisions of the system procedure "Risk management". The significant risks and their control measures were the subject of debate within the meetings of the Commission for the monitoring of the internal control management system.
The situation of risks identified in 2022 is presented as follows:
Crt. No. | Name of EGR | Level of tolerance of the identified risk | Total number of identified risks | |||
Number of tolerable risks (1-4) | Number of risks with high tolerability (5-8) | Number of risks with low tolerability (9-12) | Number of Intolerable risks (15-25) | |||
1. | TRANSPORT OPERATIONS UNIT | 22 | 7 | 1 | 0 | 30 |
2 | The Economic Direction | 11 | 10 | 0 | 0 | 21 |
3 | Maintenance Development Unit | 2 | 14 | 13 | 0 | 29 |
4 | Deputy Director General 3 | 2 | 15 | 5 | 0 | 22 |
5 | Audit Body | 2 | 0 | 0 | 0 | 2 |
6. | Deputy Director General | 8 | 18 | 8 | 0 | 34 |
7. | Deputy Director General 2 | 10 | 3 | 2 | 0 | 15 |
8. | Internal Public Audit Office | 1 | 6 | 0 | 0 | 7 |
9. | BoD and GMS Secretariat Bureau | 3 | 0 | 0 | 0 | 3 |
Total | 61 | 73 | 29 | 0 | 163 | |
Table 11 - Statement of risks identified in 2022
Chart 10 - Statement of risks within the company
The risk profile at CONPET S.A. level for 2022 is as follows:
- | 61 tolerable risks (with exposures from 1-4); |
- | 73 high tolerability risks (exposure between 5-8); |
- | 29 low tolerability risks (exposure between 9-12); |
- | 0 intolerable risks (exposure between 15-25). |
The risk profile at CONPET S.A. level in 2022 as compared to 2021 and 2020, is as follows:
Chart 11 - Risk profile CONPET S.A. - comparative presentation 2020-2022
Based on the risk profile within CONPET S.A., the Monitoring Commission analyzed and endorsed the risk tolerance limit for 2022 to up to 12, a risk appetite at the average level (risks with exposure greater than 12 after their management are not accepted). If the exposure of a risk increases above the tolerance limit, the Monitoring Commission is being met for the analysis and proposal of urgent action.
The Technical Secretariat of the Monitoring Committee has established the Significant Risk Registry within CONPET S.A. (with a tolerance level greater than or equal to 9). The actions to deal with significant risks were centralized and the Annual Plan for the implementation of control measures for significant risks was developed for the year 2022.
All actions in the program for the development of the internal control management system in CONPET S.A. for 2022 were made on the deadlines set out in the program.
Following the self-assessment of the internal control management system in accordance with the provisions of the O.S.G.G. no. 600/2018, it has been declared compliant on 31.12.2022, with all 16 standards implemented. The results of the self-assessment and the details regarding the stage of implementation and development of the internal control system were included in the Report on the managerial internal control system and in the centralizing situation regarding the stage of implementation, on December 31, 2022. These reports were also communicated to the tutelary authority.
Integrated management system
Certification of the Integrated management system quality - environment - occupational health and safety was held for the first time in September 2007 with recertification every three years.
Later, in September 2016, the company also obtained certification for the energy management system, a system that was implemented and integrated into the previous management systems.
Following the external recertification audit, carried out by the BUREAU VERITAS body, in September 2022, the certificates for the management systems of quality, environment, health and safety at work and energy were issued:
- | Certificate no. RO22. RO22.4340383Q, in accordance with the requirements ISO 9001:2015; |
- | Certificate no. RO22. RO22.4340383E in accordance with the requirements ISO 14001:2015; |
- | Certificate no. RO22. RO22.4340383S, in accordance with the requirements ISO 45001:2018; |
- | Certificate no. CZE - 2200254, in accordance with ISO 50001:2018 requirements. |
Starting 2010, within CONPET S.A. the railway safety management system is being implemented and maintained in accordance with the national legal requirements on railway safety, in compliance with the national legal requirements on rail safety and the reference European directives. The field of application of this system includes the railway ramps within the NTS where CONPET carries out railway shunting, for which the company holds the “License for the performance of rail transport services (railway shunting), granted by the Romanian Railway Authority (Ro. AFER).
Starting January 2021, within CONPET have been deployed anti-bribery management system implementation program, as required by SR ISO 37001:2017, program which has been finalized in June 2022.
In July 2022, following the external audit performed by the certification body SRAC CERT,
have been issued the certificates:
- | SRAC nr.28/ 13.07.2022; |
- | IQNet nr. RO-0028/ 13.07.2022 |
asserting compliance with the requirements of the anti-bribery management system implemented by CONPET S.A. in compliance with the requirements of ISO 37001 standards.
In June 2022, the Analysis Performed by Management 30 (AEM 30) was carried out with the aim of determining the effectiveness of the quality – environment – occupational health and safety – energy – anti-bribery integrated management system and the railway safety management system. Following the carried out analysis, actions were established to increase the effectiveness of the management systems.
All the actions included in the Action Plan of AEM 30 have been implemented.
Within the energy management system, the energy objectives and targets for the year 2022 were established as follows:
Energy objective 2022 | Energy target 2022 |
O1: Maintaining energy efficiency for electricity use. | O1/T1: Maintaining the electricity annual average specific technological consumption at a level of maximum 3.3 Kwh/product ton O1/T2: Maintaining the electricity annual average consumption in Conpet administrative buildings as compared to the reference period 2019. |
O2: Increasing energy efficiency for the uses of natural gas. | O2/T1: Reducing natural gas consumption at CONPET compared to the reference period 2019. |
O3: Increasing energy efficiency for uses of diesel. | O3/T1: Reduction of specific diesel consumption for the rail shunting within CONPET as compared to the 2019 reference period |
O4: Increasing energy efficiency for the uses of automotive fuels. | O4/T1: Maintaining the auto fuel consumption in CONPET compared to the reference period 2019. |
O5: Increasing energy performance for the uses of water | O5/T1: Maintenance of the water consumption at CONPET level, for every location by the observance of the Water Management Rights Permit |
Table 12 - Energy objectives and targets 2022
In order to meet the established targets, an Action Plan for achieving the 2022 energy objectives and targets was developed and approved.
The internal audit of the integrated quality- environment- occupational health and safety management system and the railway safety management system shall provide information regarding the compliance with the requirements of the references and applicable legal requirements. Internal audits are also aimed at assessing the effectiveness and continuous improvement of the implemented management systems.
The internal audits were conducted in accordance with the approved program for the year 2022 and the audit criteria established in the audit plans. The results were communicated to the audited persons by distributing the audit reports, to which were attached reports of non-compliance and corrective action opened during audits.
The company annually provides resources to develop adequate internal audit, mandatory requirement of the reference standards SR SR EN 9001:2015, SR EN ISO 14001:2015, SR ISO 45001:2018, SR EN SR 50001: 2019 EN ISO 37001:2017, as well as the regulations on railway safety.
Within CONPET S.A. the Internal Control Management System has been implemented and developed, containing the 16 standards included in the Internal control management code of the public entities.
Implementation of Standard 8 requirements “Risk Management” was a priority in the organization by documentation and application of provisions of PS-MI-18 “Risk management” system procedure (sheet process, flow diagram and system procedure).
In the first half of 2022 have been identified, assessed and centralized risks that may affect the achievement of the objectives. At CONPET level, a Significant risk registry (with exposure level equal to or greater than 9) and an annual plan containing measures to control significant risks, responsible and time-frames for the measures were developed.
Assessment of risks for 2023 will include the analysis stage of the implementation of measures to mitigate the risks for 2022 and will be conducted in accordance with the procedure system “Risk management”, during which the risk register at CONPET will be updated.
In paragraph 4.1.8. “The development of the internal management control system” includes detailed information on risk management in 2022 within CONPET SA.
As regards the risks which may affect the strategic objectives of CONPET S.A., the updated information for 2022 are the following:
- Operational risk
Operational risk comes from the Degradation of the National Pipeline Transport System (NTS) due to the low level of utilization (small quantities, reduced frequency) and the potential escalation of the criminal acts related to pipeline attacks bearing significant impact on the pipelines National Transport System and environment;
In order to keep this risk under control have been set the following measures: redefinition of the transport infrastructure according to demand-side, optimization of pumping programs for the stations with low production, expanding the modernization of pumping stations and continuous monitoring of process parameters and and identification of new potential beneficiaries of the services delivered by the company.
The Market risk arises from reducing the amount of crude oil transported to the refineries. This makes the utilization of the transport system to be very low. The company must identify new opportunities leading to the increase of the degree of use of the system and adopt solutions for streamlining and optimizing the transport activities leading to maintaining the NTS at a higher level of operational security.
The Company is dependent on the level of crude oil processing in Romania and the possibility of intervention in this area relies only in the demand of fuels in the market. The company CONPET can only prove at any time that it is able to provide quality services in terms of the transport of crude oil, rich gas and condensate for any client. In order to ensure this, CONPET must be an active player and permanently interested in the market developments in this area of interest.
Following the petrochemical industry restructuring in Romania, the transport of crude oil derived products (rich gas) decreased severely, (transport of ethane is no longer made since 2009), which adversely affects the use of the subsystem related to these products.
Given the conditions, by the support of the Ministry of Energy and the National Authority for Mineral Resources-NAMR), the company CONPET pays efforts to identify new collaborations that lead to the increase of the degree of use of the system, nevertheless involving into regional projects started in its business area.
- The credit risk
Credit risk is the risk that the company bears the financial loss due to the failure of contractual obligations by a customer or counterpart to a financial instrument, and this risk results mainly from trade receivables, cash and cash equivalents and short-term investments of the company.
The company is less exposed to this risk due to the specific nature of the services sold, which are aimed at large companies with a particular financial situation.
The company has implemented a series of policies that ensure that the sale of services are made to customers with a rapid collection. The value of net claims (without adjustments for depreciation) represents the maximum amount at risk of collection.
Credit risk related to trade receivables is low because of the regular collection of counter transport services and guarantees received from customers (letters of guarantee). Even though there are significant concentrations, the customer base is extremely low, the management considers that the commercial credit risk is low.
- Risk related to the regulation and authorization
The risk related to the regulatory framework and permits is significant given that the company must obtain and periodically renew a series of endorsements, permits and certifications, an aspect that can sometimes lead to additional expenses and/or delays in the start or completion of some works, with possible negative effects.
The core business of CONPET, the transport of crude oil, rich gas and condensate through pipelines and by rail, involves obtaining and/or renewing the authorizations that regulate the company's activity, obtaining construction permits, based on all the necessary approvals for the works in the investment programs, obtaining/renewing licenses and certifications (AFER) for railway shunting activity, etc.
Failure to comply with the regulations could lead to the sanctioning of the company or the suspension of the activity. Keeping this risk under control is done through careful monitoring of the newly emerging legal requirements or changes in applicable regulations, as well as implementing actions necessary to comply with them.
- The liquidity risk
The liquidity risk is the Company’s risk to face difficulties in the achievement of the liabilities associated with the financial debts that are being settled in cash or by the transfer of other financial asset.
The Company’s approach in the liquidity management consists in providing, as much as possible, that it will always dispose of enough liquidities to pay the maturity liabilities, both under normal and stress conditions, without bearing unacceptable losses or endanger the Company’s reputation.
The liquidity risk is managed by the Company’s management by the application of a permanent insurance policy of liquidities meant to cover the settlement of the due financial liabilities.
The level of this analyzed risk is low, the measures to keep it under control stick to the close surveillance of the exposure to liquidity risk, this measure being sufficient.
- Exchange Rate Risk
The company may be exposed to fluctuations of the exchange rate of the currencies by means of cash and cash equivalents, short-term investments, long term loans or trade liabilities expressed in foreign currencies.
The functional currency of the Company is the Romanian Leu (RON). At present, the Company is exposed to the exchange rate risk through cash and cash equivalents, as well as through the procurements made in a currency different from the functional currency. The currencies exposing the Company to such a risk are mainly EUR, USD and GBP. The debts in foreign currency are subsequently expressed in RON, at the exchange rate of the date of the balance sheet, communicated by the Romanian National Bank. The resulting differences are included in the profit and loss account, but do not affect the cash flow up to the moment of the liquidation of the liability.
The Company’s exposure to the exchange rate risk expressed in RON was insignificant. The analyzed level of this risk was negligible; it is a tolerable risk for which no necessary special measures are needed to keep it under control.
- The risk related to disputes
One of the major risks the company is currently exposed to, as concessionaire of the Crude oil, rich gas, ethane and condensate national transport system drives its sources in the legal regime of the lands under/over crossed by the transport major pipelines instituted pursuant to the provisions of Petroleum Law no. 238/2004. The number of private properties under/over crossed by pipelines is very high and there is a possibility that more and more owners bring proceedings in Court against the Company in order to obtain substantiated compensations based on the simple presence of the pipelines on their lands. Due to the defective way in which the legal regime of the lands under/over crossed by the transport major pipelines has been regulated, CONPET was and currently is engaged in a series of trials where the owners of those lands claim for the transport pipelines be either lifted or moved to other sites (and the expense be borne by CONPET) or be granted annual compensations representing consisting amounts of money. Moreover, even some public authorities have laid pecuniary claim about the presence of components belonging to the NTS on the lands owned or managed by them.
Within the last years, the Company prepared various legislative proposals to amend Law no 238/2004 - Petroleum Law, hoping for a coherent and clear regulation of the legal regime of lands under/over crossed by the transport major pipelines. In essence, these proposals are based on the following assumptions:
- | public property (of the major pipelines) must coexist with private ownership of land, which leads to the conclusion that the state must be acknowledged the exercise, free of charge, of certain categories of real rights (servitudes etc.) for the presence of the pipes on the ground; |
- | CONPET must fully compensate the landowner for any action that would require temporary occupation of land for repair or damage suffered by owners due to damage. |
- | public property (of the major pipelines) must coexist with private ownership of land, which leads to the conclusion that the state must be acknowledged the exercise, free of charge, of certain categories of real rights (servitudes etc.) for the presence of the pipes on the ground; |
- | CONPET must fully compensate the landowner for any action that would require temporary occupation of land for repair or damage suffered by owners due to damage. |
- The Risk Determined by the Correlation with the Global Market Evolution
Nationally, on the upstream segment - exploration and production of crude oil and condensate
In terms of primary energy resources for 2022, the provisional data released by the Statistics National Institute (ro.INS) (period January - October 2022) shows a decrease of the internal production by 6.2% YoY.
On medium and long term, the downward trend of the production will continue until 2025-2030 followed by an expected sharp decline. As shown in the Romanian Energy Strategy 2020- 2030, with the perspective of 2050, lower production of crude oil will reach about 1.7 million tons in 2030 and up to 1.15 million tons in 2050.
The crude oil demand and production at world level
According to the Oil Market Report dated December 2022 of the International Energy Agency and S&P Global Commodity Insights for 2022, at the aggregate level, crude oil demand registered an average increase of 2.3 million bbl/day (+140 kbbl/day in December) and for 2023 is forecast a moderate increase to 2 million bbl/day, very far from the outlook of early 2022.
OPEC data, both at the aggregate 2022 (estimates for November 2022) as well as the forecasts for 2023 show an increase in the world oil demand as compared to 2021 by 2.54 mbbl/day (97.03 in 2021) and an increase of 2.24 mbbl/day in 2023 to 101.82 mbbl/day. For the end of the year, the world oil production in 2022 was revised upwards by 3%YoY (93.86 mbbl/day). An increase of 1.59% is estimated for 2023 (preliminary data at the level of 2022 Q3).
Issues related to the risks caused by the Russia-Ukraine conflict
Crude oil price. 2022 Evolution. Evolutive estimates for 2023
In the first half of 2022, the geopolitical tension with Russia, which culminated in Russia's full-scale invasion of Ukraine on February 24, led to the boost in crude oil prices. On March 8, 2022, the combination of Russia's invasion of Ukraine and low global crude oil inventories pushed the crude oil prices in 2022 to their highest inflation-adjusted price since 2014, respectively 139 USD/bbl. On December 8, the price of Brent crude oil reached its lowest price since 2022 at 75 USD/bbl and on 30.12.2022 the spot price of Brent crude oil closed at 85 USD per barrel (bbl), 7 USD higher than the price in January 3, 2022 (78 USD/bbl). The price rose significantly in the first half of 2022, but generally declined in the second half of the year. The Brent crude spot price averaged $100/bbl in 2022 and the WTI spot price averaged 95 USD/bbl.
In mid-2022, the Energy International Agency (EIA) predicted for the period 2022-2023 a level of fluctuation between 120-150 USD/bbl, in case of escalation of the Russian-Ukrainian conflict.
The EU-27 dependency of the crude oil imports from Russia and the impact of the imposed economic sanctions
In 2021, Russia was the main supplier of crude oil to the EU, with a share of 24.8%, lower by almost 1% as compared to 2020, the European Union importing 2.2 million barrels per day (bpd) of crude oil.
Although it was estimated in April 2022 that the application of the restrictions on Russian crude oil imports (transported by the sea and through pipelines) will induce a major risk of shortage in supply (approx. 1.1 mb/day would remain uncovered on the EU market), according to Eurostat data at the level of October 2022, Russia lost 10.4% of the quantities of oil delivered to the EU-27 in the first 3 quarters of 2022 and at the same time additional sources were identified, the largest increases in the quantities supplied being recorded by Norway, United States and Saudi Arabia.
The Oxford Institute estimates indicate that in the short term, the US intervention by releasing state oil reserves will reduce pressure, but there will be a major risk of supply shortages, as around 1.1 mb/day remain uncovered. This risk is expressed in case of escalation of the conflict, starting with the first quarter of 2023.
The capping imposed on the price of oil and oil products coming from Russia
On December 3, 2022, the G7 members formally set the price capping for the Russian crude oil at 60 USD per barrel. This price capping applies to the crude oil, petroleum oils and mineral oils.
The price cap sets a framework for Russian seaborne crude oil and oil products to be exported to third countries at a capped price, and applies from December 5, 2022 for the crude oil and February 5, 2023 for the petroleum products.
The operation of the price cap mechanism will be reviewed every two months as to respond to market developments and will be set by at least 5% below the average market price for Russian oil and petroleum products, calculated on the basis of the data provided by the International Agency for Energy.
In conclusion, the G7's 60 USD/bbl price cap for the Russian crude oil and its restriction on oil products as of February 2023 will further affect global seaborne oil trade as Russian volumes will have to find new buyers.
The impact on the oil and gas industry at regional and national level
Almost all the European refineries that are fueled with Ural oil through the Drujba pipeline system were built to refine this type of crude oil.
The highest affected will be the downstream refining sector. According to the Blomberg-Wood MacKenzie analysis dated May 2022, the worst scenario of the conflict in Ukraine with a severe impact on the EU economy is the total stoppage of Russian gas and oil combined with the lack of close prospects for the substitution of Ural-type oil.
In recent months, European countries have reoriented to new sources of crude oil, as an alternative to the Russian one. From a regional point of view, the possible alternative sources are:
- | North Africa and the Middle East: (Angola, Nigeria, Saudi Arabia, United Arab Emirates, Iraq); |
- | The rest of the OPEC+ countries; |
- | United States of America and Canada; |
- | Iran; |
- | Other manufacturers. |
The war in Ukraine continues to have profound human, economic and business impacts, driving rising inflation, supply chain pressures and changes in the behavior of the global oil market. The impact of the embargo on Russian crude oil and end products will generate a significant structural disruption of the supply, ongoing price volatility, with an increased risk of recession and possible stagflation.
The global crude oil and products system has suddenly become more complicated, less efficient and more costly.
On the EU markets, effects are expected between moderate influences on the increase in external commercial lending rates and increases in energy prices combined with shortages in the supply of energy raw materials, respectively a high risk of economic recession.
The crude oil market in Europe and especially Central and Eastern Europe will be marked by the following defining lines:
- The crude oil supplies will continue towards Europe on the Drujba pipelines, especially on the southern branch towards Hungary, Slovakia and the Czech Republic;
- The northern branch of the Drujba pipeline, although exempt from sanctions, will cease operations as Germany and Poland prepare to end imports on this route;
- Hungary is preparing for an alternative route by building a joint pipeline with Serbia to allow the supply of the refineries in Pancevo (Serbia) and Szászhalombatta (Budapest) through the Drujba Sud system, once the supply of crude oil through the Omisalj sea terminal and the Adria pipeline from Croatia is stopped;
- Bulgaria will continue importing Russian crude by the sea for the Burgas refinery (owned by Lukoil) until December 2024.
For the countries in South-Eastern and Southern Europe, respectively Bulgaria and Romania, the ban on the transport of crude oil through the Drujba pipelines has no impact, the Russian crude oil supply to the refineries in Ploiesti and Burgas being carried out exclusively through the Black Sea terminals in Constanța and Burgas.
At the national level, a year 2023 is shaping up in which the decrease in domestic production will continue and the compensation will be with imported quantities, under the conditions that the refining capacities be the same.
Considering the recent sale of the refinery in Italy by the Lukoil group, the possible reconfiguration of the business model of the Lukoil group in the downstream segment - refining is worth watching.
Impact on the activity of Conpet S.A.
On the short term, the company’s activity is not affected. The medium and long-term impact of this conflict and the sanctions imposed on Russia cannot be predicted at this time with sufficient accuracy. Given that the company’s business is somehow reliant on the area affected by sanctions (especially Russia), in terms of sales, we believe that there are sufficient premises that ensure the continuity of the activity in the foreseeable future, so that the company be affected as little as possible.
- The capital Market Risk
The Romanian capital market registered a positive evolution during the year 2022, due to the fact that it was the second year since it acquired the status of emerging market. The daily average liquidity for all types of financial instruments has recorded an upward trend during the analyzed period. Romania’s representativity within the indexes of Emerging Markets has materially increased every year. Given that the company CONPET S.A. is included in the composition of the FTSE Global Micro Cap index, the risk of reduced liquidity is reduced.
- The legislative-related Risks
The frequent amendment of the normative acts here-included those that bear direct impact on CONPET business may trigger risks for the company.
The effort of the company CONPET to constantly adapt to changing legislative requirements may generate additional costs and possible future changes in the legislative framework could have negative effects on the activity and profitability of CONPET (increased taxes, introduction of new taxes and duties, reduction or suspension of tax concessions, etc.).
Moreover, a possible increase in the level of the royalty paid for the use of the national Transport System may affect the financial statements and financial projections. An increase of the level of the royalty shall reflect into an augmentation of the transport tariff and, subsequently, the consequences may be seen on two lines: in the decrease of the crude transported quantities and over the pump price of the finite products resulted from the crude oil processing.
An important risk is being represented by the loss of the facility regarding the expenses borne by the Romanian State, in order to provide the guard and protection of the pipelines by gendarmes, regulated by GD no. 1107 dated November 14, 2012, which amends and complements GD no. 1486/2005.
- The Personnel Risk and the Waging System
At December 31, 2022, the structure according to age is not balanced, the age categories with the highest rate ratio in the company is ranging between 51 - 60 years old (52.29%) and between 41-50 years old (27.82%).
The average age of the company CONPET personnel is high (49.4 years old) and the advantage it brings is the work experience accumulated by employees within the company, which indicates stability and professionalism. The average age of the personnel employed in the last two years is of 40.9 years, with an average work experience of 15.3 years.
Chart 12 - Personnel structure by age groups 2022
However, the risk of personnel in the future is the company to deal with staff shortages due to departures of the employees reaching retirement age.
The level of this analyzed risk was low; being a high tolerability risk and for the control thereof have been set medium and long-term measures by way of the personnel policy and the monitoring of the personnel fluctuations (personnel input/output).
Chart 13 - Personnel structure by studies and age groups in 2022
In terms of level of education, the highest share is for the employees who have medium and higher education and ages ranging from 41 to 60 years old.
It should be noted that the age group of 41-50 years is relatively well represented by the scale of Employees who will reach the standard retirement age in at least 12 years and a maximum of 25 years, and about 80 % of this echelon has a seniority in society of more than 10 years.
It should be noted that the 41-50 age group is relatively well represented by the echelon of the employees who will reach the standard retirement age in at least 12 years and no more than 25 years, and approx. 80% of this echelon has been in the company for over 10 years.
- The risk caused by the Corona virus pandemic (Covid-19)
In addition to the risks mentioned above, the Company CONPET S.A. faced in 2022 risks caused by the COVID-19 pandemic. Under these conditions, measures have been adopted to protect employees and limit a potential spread of the COVID-19 disease. Thus, measures for the prevention and protection in all sites where employees operate have been taken, including: limiting visitor access, which is allowed only in absolutely necessary situations, subject to the rules of disinfection set by CONPET, intensification of actions on prevention and hygiene, limiting internal travel at their work sites, establishing minimum necessary personnel for the smooth running of operations and for ensuring continuity in the transport of crude oil, rich gas and condensate, in the light of the pandemic.
CONPET is a financially stable company that has the ability to quickly and efficiently implement emergency measures to be taken to protect the health of the employees, as well as to provide safe maintenance of the Crude oil National Transport System. In the context of the COVID-19 pandemic, the continuity of the company's activity was ensured.
Internal audit
Internal public audit activity within Conpet S.A. is organized at the level of the Internal Public Audit Office and is carried out in accordance with the "Methodological Norms regarding the exercise of the internal public audit at CONPET S.A. Ploiesti", approved by the management of the company. At the level of CONPET S.A. the internal audit structure is established and is functional, the Internal Public Audit Bureau is functionally and administratively subordinated to the Director General and functionally to the Audit Committee.
The internal public audit activity in 2022 was performed based on the Internal Public Audit Plan, approved by the Director General of CONPET SA and endorsed by the Audit Committee, as well as on the basis of the BoD Decisions to conduct ad-hoc audits required.
The core component of the system for reporting the results of the internal audit activity is represented by the internal audit reports, which are compiled at the end of each completed mission and are approved by the company’s management. The reports include the findings, conclusions and recommendations made by the auditors in order to improve the audited activities, as well as their opinion in relation to the level of functionality and efficiency of the internal control system attached to the areas assessed.
In 2022, 6 audit missions were carried out in the fields corresponding to the legislative framework applicable to internal audit (budgetary field, financial accounting, company-specific functions and other fields of activity), following which 16 recommendations were formulated.
The missions carried out in accordance with the Internal Public Audit Plan approached the following topics:
The recommendations made during 2022 by the internal auditors have been implemented or are being implemented by the audited structures; there have been no cases of deprecation of the recommendations made by the internal auditors and there have been no cases of unappropriated recommendations. The Internal Public Audit Office shall continuously monitor the implementation of the recommendations and report on a half-yearly report to the Director-General and the Audit Committee on the status of the recommendations not implemented and in the process of being implemented.
External audit
The 2022 annual financial statements were audited by the independent financial auditor PKF Finconta S.R.L., appointed by the Decision of the OGMS no. 6 of 28.10.2022 for a period of 3 years.
The interim financial statements prepared for the first semester of 2022 were reviewed by the financial auditor BDO Audit SRL.
Personnel structure
The effective number of employees on December 31, 2022 was of 1,463 persons.
Following the adoption, in 2020, of certain measures meant to resize the human resource, as well as of certain voluntary, or triggered to other causes personnel termination, the effective number of employees on December 31, 2022 decreased by 80 persons as compared to December 31, 2021.
The evolution of personnel structure by education categories reveals the interest of the company to cover the staff needs with high qualification specialists and by the continuous improvement of the existing staff.
In 2022, the number of higher education employees was 563, lower by 16 persons as compared to 2021, while the number of secondary or general education employees has decreased from 964 people to 900 people.
Studies | Total | % in total employees | Women | % in total employees | Men | % in total employees |
General | 91 | 6.2 % | 8 | 0.6% | 83 | 5.7% |
Secondary education | 809 | 55.3 % | 72 | 4.9% | 737 | 50.3% |
Higher education | 563 | 38.5 % | 211 | 14.4% | 352 | 24.1% |
Total | 1,463 | 100% | 291 | 19.9% | 1,172 | 80.1% |
Table 13 - Personnel structure by education level and gender on December 31st, 2022
The evolution of the personnel structure according to education and gender reveals that the company promotes a non-discriminatory behavior by employing female specialists with higher education and professional skills to contribute to the growth of the company’s activity results.
Chart 14 - Evolution of the personnel structure by level of studies between 2014 -2022
The staff with management functions account for 5.54% in the total number of employees and the executive staff accounts for 94.46%. Out of all employees with management capacities, 34.56 % is represented by female personnel.
In 2022, the structure of the employees by categories was the following:
- | Directly productive 548 employees; |
- | Technically productive 306 employees; |
- | Indirectly productive 218 employees; |
- | Administrative 264 employees; |
- | General service 127 employees; |
Chart 15 - The structure of employees by category in 2022
The degree of unionization of the workforce at the end of 2022 is of 98.64%. During 2022, there have been no elements of a conflicting nature between employees and the management of the company.
Aspects regarding the Collective Labor Agreement
The validity of the Collective Labor Agreement (CLA) applicable at CONPET S.A. level, which was to be ended at 31.12.2021, was extended all over the state of alert, as well as 90 days from the end thereof, in compliance with the provisions of Art. 20 (1) of Law no. 55/2020 regarding certain measures for the prevention and mitigation of the effects of COVID -19 pandemic.
Given that, as of March 9,2022, the state of alert on the Romanian territory has no longer been extended, the parties (Employer and Trade Union) had the obligation to initiate the collective negotiation within 45 days as of the termination of the state of alert as per Art. 20 (2) of Law no. 55/2020.
In this respect, in June 2022, a new Collective Labor Agreement was concluded, approved by the Board of Directors and registered at the Prahova Territorial Labor Inspectorate, valid as of 07.06.2022, for a period of 2 years.
The rights of the employees existing in the Collective Labor Agreement have been negotiated so that a balance between the interests of the two Parties, the Employer and the Union, be ensured, considering that the interests of the employees and the company’s management cannot be divergent, as well as the fact that the most important resource of the company is the human resource.
During the negotiations, it was considered that the rights of the employees established by the collective labor agreement that generates expenses of a salary nature be within the limits established by the Revenues and Expenditure Budget approved for 2022.
Professional Training and Authorization Activity
In order to maintain and develop specific skills and basic abilities of the human capital, the training activities are carried out on an ongoing and planned basis, based on the professional training and authorization programs of the company, as a result of the conduct of a comprehensive process of identification and priorities setting of the CONPET SA personnel training needs.
Training of company personnel is achieved mainly through participation in external courses, organized in collaboration with certified trainers for all fields of activity within the company. Also, training is conducted internally by trainers and experts from within the company, with a good knowledge and experience relevant to the activity of the company. They support professional training sessions and trainings with the aim of updating job-specific knowledge and skills, as well as examining or checking the employees participating in the respective sessions. During the reporting period, the body of the internal trainers was expanded in other areas as well (e.g. counseling in the field of ethics and integrity, G.D.P.R., information security).
The training of the employees has two components: a professional one (technical, economic and other specialties) necessary to perform duties in the job description and a general one on training and professional licensing in various fields.
The CONPET S.A. management assures annually, by the Revenues and Expenditure Budget, sources for the provision of training. Special attention is paid to the training of technical staff (maintenance and operations), mainly for new skills necessary to carry out the safely operation of the National Transport System.
Crt.no. | Type of professional training/ authorization | Nuber of participations | ||
2022 | 2021 | 2020 | ||
1 | Various fields authorizations (specific per activity) | 119 | 73 | 57 |
2 | Railway permits | 251 | 245 | 210 |
3 | Training | 413 | 302 | 220 |
4 | Internal authorizations | 450 | 439 | 452 |
5 | Qualifications/internal authorizations | 1,167 | 15 | 29 |
6 | Total number of trainings/authorizations | 2,400 | 1,074 | 966 |
Table 14 - Structure of training/professional authorization courses in 2020 - 2022
Chart 16 - Type of professional training and authorization in 2022
The situation of professional training expenses made during 2020-2022 is presented as follows:
2022 | 2021 | 2020 | |
Authorization courses | 188 | 128 | 166 |
Training courses | 401 | 279 | 321 |
Total personnel training expenses | 589 | 407 | 487 |
Table 15 Professional training expenses 2020-2022
The training and professional authorization activities of the company’s employees for 2020-2022 were carried out by framing within the approved revenue and expenditure budget.
Regulation on the assessment of the professional performance of CONPET S.A. employees
The professional performance evaluation of CONPET S.A. employees is carried out in accordance with the Regulation on the evaluation of individual professional performance of Conpet employees - Annex to the Internal Regulation.
The Regulation is in line with the provisions of the GSG Order no. 600/20.04.2018 approving the Code of Internal Control Management, Law no.53/2003 republished, - the Labor Code, as well as with the Board of Directors requests, that focus on the individual professional performance, a basic principle in labor relations.
The action for evaluating the professional performance of employees for the activity carried out in 2021 took place in 2022Q1, in accordance with a new Regulation for evaluating the performance of the employees.
After the centralization and processing of the information resulting from the evaluation of the professional performance of the employees for the activity carried out in 2021, the evaluation report of the performance of the employees was drawn up and submitted to the management. The assessment report includes the results obtained by the employees following the performance of their evaluation, inclusive of the degree of achievement of the SMART individual performance objectives of the employees occupying management positions.
At the end of 2022, additional documents to the individual employment contracts were concluded for the employees with management positions, which contain, in the form analyzed and established at the level of each entity: individual objectives, performance indicators, target values and their associated weights for the activity from the year 2023.
Identification of the environmental aspects and environmental impact assessment
The environmental impact assessment activity is carried out in the production sectors whenever changes occur in the system involving environmental impact activities, the list of significant impact issues identified at company level being the basis for the development of the Environmental Management Program and the Action Plan for the achievement of the environmental objectives.
During 2022, the entire documentation related to the Environmental Management System was reviewed, focusing on the identification of the environmental aspects, the manner of treating the risks and opportunities related to the environmental aspects in order to prevent and reduce the consequences thereof on health and environment, using opportunities for the benefit of the organization as well as the environment. The following documents have been reviewed:
- | The Environmental Management Program containing: the commitments associated to the environmental policy, general objectives and measurable environmental targets, the performance indicators on environmental protection, as well as the positions responsible for the achievement of the environmental targets; |
- | The actions plan for the achievement of the environmental objectives that took into account the significant environmental aspects identified inside CONPET the measures from the inspection reports/protocols - authorities, regarding the compliance with the legal requirements and other applicable requirements; |
- | The list of significant environmental aspects and associated impacts generated at the level of CONPET S.A. company. |
The status of achievement of the objectives and targets set and the stage of the implementation of the actions set for the achievement of the environmental objectives are analyzed annually by the executive management, in the framework of the analysis carried out by the management.
Regulation of activities in terms of environment and water management
In terms of environmental protection and water management, CONPET activity is authorized in accordance with the provisions. nr.195/2005 on environmental protection, as supplemented and amended and Water Law no.107/2005, with subsequent amendments and additions.
The activity of CONPET S.A. is authorized in all counties by the regulatory authorities (A.N.P.M./National Agency for Environmental Protection, county A.P.M./Agency for Environment Protection, A.N.A.R./National Administration „Romanian Waters”, A.B.A./Water Basin Administration, S.G.A./Water management Unit) and in this respect holds 39 water management authorizations and 22 environmental authorizations.
For the operation in legality from the point of view of environmental protection, for the year 2022, the annual endorsements of the environmental authorizations were obtained. Furthermore, there have been revised:
- | The environmental Authorization no. 11/03.08.2010 for Țicleni – Ploiești crude oil, rich gas and ethane major transport pipelines and the related work sites on the administrative territory of Gorj, Vâlcea, Olt, Argeș, Dâmbovița, Prahova counties; |
- | The environmental Permit no. 35/09.04.2019 for the Imeci crude oil loading ramp, Covasna county; |
- | The environmental Authorization nr.16/02.02.2022 for the Independenta crude oil ramp, Galati county. |
As regards the water management regulation, all along 2022, 13 water management permits have been renewed for the watercourse crossings by the NTS-related piping routes.
Assessments of compliance with legal requirements and other environmental requirements
The assessment of compliance with the legal requirements or other applicable environmental requirements is carried out by:
- | inspections carried out by the environmental authorities (representatives of central and local environmental and water management authorities); |
- | inspections carried out by HSEQ managers and the staff of the Environmental Protection Department; |
- | external audits carried out by bodies certifying the environmental management system integrated in the company’s integrated management system; |
- | internal audits performed by the internal auditors within the Management Systems and Internal Managerial Control Departments. |
The environment and water management authorities are carrying out scheduled audits in CONPET sites, unscheduled and thematic with regards to the observance of the legal requirements and other environmental regulations, not having been found major nonconformities.
To verify compliance with the legal requirements, in 2022, were recorded 62 external inspections of the environmental authorities in the counties where CONPET S.A. operates.
The personnel from the sectors, respectively the HSEQ officers conduct scheduled inspections according to the annual inspection chart for compliance with the legal requirements and other applicable requirements, but also not scheduled inspections according to the attributions of the job description.
During 2022, an external audit was carried out by the BUREAU VERITAS certification body, to verify compliance with the requirements of the ISO 14001:2015 standard that refers to the environmental management system. No non-conformities/deviations were found and no observations were made regarding the compliance obligations in this area.
Following the internal audits established in the annual internal audit program, the non-conformities identified in the environmental management system were identified and corrected in time.
Pollutions bearing significant impact on the environment
During the pumping of crude oil, accidental pollution can occur on the transport pipelines, from internal or external causes, generating pollution of the geological environment that can have a significant impact.
The expenses made in 2022 with the decontamination of the affected areas reached 1.74 million RON.
For compliance with the regulations required by the national environment legislation in force, regarding the management of the dangerous waste, “paraffin - type” and “tank sludge”, the company CONPET has the obligation to contract services for recovery/disposal thereof, thus avoiding sanctions provided by GEO 195/2005 on environmental protection, GEO no. 92/2021 on waste regime and GO no. 1061/2008 on the transport of hazardous waste on the Romanian territory.
Hazardous waste “tank sludge-type” is generated from the activity of storage of the crude oil in tanks (in time, mechanical impurities from crude oil settles generating this sludge), it must be periodically evacuated, in order to ensure the necessary storage space for the crude oil, respectively repairs/calibration of tanks, as , well as the need to eliminate the risk of fires or pollution from oil storage tanks, tanks leaks, decanters and sewage that is no longer present in the technological and sludge deposits.
The expenses related to the sludge cleaning services carried out in 2022 amounted to 237 thousand RON.
Within the technological flows carried out by CONPET Ploiesti, periodically, based on maintenance programs, the main and/ or local crude oil transport pipelines are subjected to cleaning operations of the inner space with special devices called "pigs". Following the execution of in-line cleaning of these pipelines, of the related keyboards, of the filters from pumps or skids, paraffin is generated which is a hazardous waste according to environmental legislation in force. This waste was stored in metal dumps, located in the technological premises of the company, until its disposal by authorized operators. Contracted by the company.
The expenses related to the sludge cleaning services carried out in 2022 amounted to 44 thousand RON.
Monitoring of environmental factors
Based on the requirements of the chapter “Environmental Monitoring” included in the environmental permits, “The annual program for the monitoring and measuring of the characteristics of the environmental factors 2022” has been drawn-up, which has included the performance of the following parameters:
- | concentration of pollutants in the exhaust emissions from the water surface into the water in the sewer network and the concentration of pollutants in the groundwater (existing monitoring wells) determining the level of pollution in the event of accidental pollution of rivers; |
- | the concentration of pollutants in atmospheric emissions of stationary sources and/or movable (thermal power stations, oil storage tanks), and the concentration of pollutants in the ambient air; |
- | concentration of specific pollutants from soil samples; |
- | noise level. |
To determine the level of pollution for the environmental factors: water, air, soil and noise, analysis are being conducted by certified laboratories. The values recorded for each measured indicator were below the maximum limits provided for by the regulation, according to test reports issued. The physical and chemical analyzes to monitor environmental factors were taken through laboratories accredited according to SR EN 17025: 2005.
The results of monitoring the environmental factors are communicated to the environmental authorities as required by environmental permits. In 2022, the costs for environmental factors monitoring amounted to 21.1 thousand RON.
Below is represented, on the map of the country, the Crude oil, Condensate, Rich gas and Ethane National Transport System.
Chart 17- The National Transport System operated by CONPET
Given the natural distribution of the oil fields spread over the entire Romanian territory, the National Transport System was built so as to meet the transport needs from all those fields to the refineries. The system operation is being made based on the local dispatch centers, coordinated from the Company’s Central Dispatch.
The Crude Oil, Rich Gas, Condensate and Ethane National Transport System has in composition 4 transport subsystems, grouped according to the transported products as follows:
The domestic crude oil and condensate subsystem transport
The subsystem contains pipelines describing approx. 1,700 km, for the transport of crude oil and condensate from the production units of OMV Petrom and third parties, operating areas throughout the country, to the refineries.
This subsystem has the following main components:
- | Ardeal component, used to transport crude oil from the deposit to the railway loading ramps in rail tanks and by rail to the refineries in Ploiești or to Bărbătești unloading ramp. |
- | Moldova component used to transport crude oil from the production units related to Lucăcești, Comănești and Cerdac pumping stations to Rafo Onesti and Dărmănești refineries. Currently, as the processing plants of crude oil from Rafo Onești and Dărmăneşti refineries do not operate anymore, the pumping of the crude oil taken over for transport is taken to the warehouse of Moineşti loading ramp. From here the oil is transported by rail tanks to Petrobrazi, Petrotel- Lukoil refineries or other destination, depending on customer requests. During 2017, following the takeover of the concession by Mazarine of several oil fields in the region of Moldova, the Cerdac store was closed. The crude oil extracted from this area is being transported by the storage trucks to Ghelinţa/Comănești deposit. Starting 2019, the crude oil from Ghelinţa storage warehouse is transported by tankers to the loading dock Imeci, loaded into railway tanks and transported to Petrobrazi/Lukoil refinery. |
- | Ghercesti-Ploiești component includes takeover of the crude oil from the production units related to Gherceşti, Lact, Izvoru, Videle, Poeni, Roata and Potlogi pumping stations and transport of crude oil by pipeline to Petrobrazi refinery in Ploiești. |
- | Ticleni–Ploiești component includes two main lines with a length of approx. 250 km, line I and line II. Line I major pipeline ensures the transport of crude oil from Țicleni and from Bărbătești unloading ramp to the refineries in Ploiești (with the possibility of pumping to Arpechim Pitești refinery, as well). Line II major pipeline collects the crude oil and condensate from the pumping and repumping stations Mădulari, Orlești, Otești, Poiana Lacului, Oarja, Saru, Siliște and Bucșani for supply to the refineries in Ploiesti (or to Arpechim Pitești terminal). |
- | Muntenia basin pipeline component includes pipelines used to transport the crude oil from the stations and deposits close to the city of Ploiești. |
- | The local pipeline component used to transport crude oil from deposits to the loading ramps in railway tanks, and from here to the refineries in Ploiești. |
The rich gas transport subsystem
The subsystem is intended for the transport of rich gas from the recovery plants in Ardeal, Oltenia and Muntenia to the refineries in Pitești and Ploiești. The transport subsystem has the following composition:
- major pipeline, line I Țicleni-Ploiești (served the region from Oltenia and Muntenia and today is no longer used following the closure of production facilities by OMV Petrom);
- local piping in Ardeal.
Rich gas transport via pipeline in Arpechim refinery has been suspended since April 2011. In 2017, the pipeline stock of the rich gas pipeline 65/8” line I Bărbătești – Ploiești has been discharged, in length of 289 km.
Currently, there are running two degasolination units (Abrămuț and Calacea). The produced rich gas is transported via pipeline from the ramp Abrămuț to Marghita ramp, and from the ramp Calacea to Biled ramp, and from here by railway to Petrobrazi.
The ethane transport subsystem
This subsystem has been allocated for the transport of ethane from the deethanizer platform Turburea to Arpechim refinery Pitesti. At present, due to the inactivity of Arpechim refinery, the subsystem is not used. Ethane transport has been suspended since November 2008. We mention that a portion of this pipeline (11 km) is used to transport condensate from Totea deposit to Petrobrazi refinery, with the approval of NAMR.
Import crude oil transport subsystem
The import crude oil transport subsystem ensures the transport of crude oil from the Oil Terminal Constanta to the refineries in Ploiești, Arpechim-Pitești and Midia. The import crude oil transport subsystem includes, Constanța Sud, Mircea Vodă, Bărăganu, Dragoș Vodă, Călăreți, Mavrodin and Mărtinești pumping stations. Depending on the chosen pumping type, different pumping scenarios can be performed for each transport route.
The domestic production of crude oil, condensate and rich gas is transported via pipeline, by rail tanks, or combined (rail and pipeline).
During the transport process, CONPET uses approximately 90 tanks of various capacities. Starting 2019 CONPET runs a big process of rehabilitation of tanks and replacing those with high degree of wear and storage capacity over the necessary of transport stream with new ones to meet the needs of current production, environment and energy consumption. The modernization and development process will be completed in 2030.
12/31/2022, The company also owns a fleet of 243 vehicles, intended for the transport of personnel for work purposes, means of intervention vehicles, off-road vans and mixed transport of persons and goods and special vehicles (emptying, cranes, diggers, etc.).
In order to perform the transport of crude oil, rich gas and ethane, from and to all its business partners, in conditions of maximum operation, high efficiency and operating costs as low as possible, in compliance with the Legislation in force relating to environmental protection and labor protection and the other normative acts in the field, CONPET carries out a continuous activity on the improvement of the technical condition of the National Transport System.
In the period of 1995-2007, through the Modernization Project co-financed by the World Bank, works consisting of the rehabilitation and modernization/revamping of the Crude Oil National Transport System have been conducted. This project has targeted:
- | pipelines rehabilitation; |
- | rehabilitation of the pumping stations on the major pipelines and two crude oil and rich gas loading/unloading ramps; |
- | automation of the transport system and introduction of the SCADA system; |
- | introduction of crude oil tax measurement systems; |
- | development of a telecommunication system. |
After 2007, the emphasis has been mainly placed on the further modernization of the pipeline system.
In order to correctly determine the portions of the pipes to be replaced, periodically the pipes of the transport lines are inspected with smart pigging for the determination of the portions of the spent pipe.
Furthermore, for safe operation, monitoring and maintenance of the National Transport System via pipelines, it was considered the performance of works intended to secure the infrastructure of the water crossings designed to enhance the degree of safety in operation of the pipelines in question, indirectly, and the protection of the waters crossed against pollution.
The pipelines that make up the Crude Oil National Transport System cross over and underground various watercourses.
Another important component in terms of safe operation and environmental protection in order to pay attention to the investment process was to secure the crossings. The works carried out were:
- | low weirs; |
- | bank protections upstream and downstream of the low weir; |
- | wave crushers; |
- | piles foundation consolidation; |
- | bank protections on the route of the pipelines which are in parallel with the river bed (damaged bank); |
- | other works related to pipeline consolidation. |
The modernization of the pipeline transport subsystems also included the investments made at the other technological components of the system, namely:
- | pumping stations; |
- | technological installations; |
- | PSI facilities; |
- | technological and administrative buildings; |
- | energy, thermal and telecommunication installation; |
- | other auxiliary components. |
The improvement of the technical status of the transport system, led to:
- | reduced technological costs in the storage and transport process; |
- | minimized energy, fuel and lubricant consumptions; |
- | minimized operating costs and reduced operating difficulties; |
- | improved safety and flexibility of the system; |
- | reduced environmental impacts; |
- | improved quantitative and qualitative measurements of the crude oil transported. |
Compared to the above, it can be appreciated that the technical condition of the National System of Transport of Crude oil through pipelines, operated by CONPET, is an appropriate one.
The achievement of the investments program approved for the year 2022 is the following:
Crt. No. | Name of the objective (thousand RON) | 2022 Program | Achieved 2022 | Degree of achievement % |
| TOTAL GENERAL, out of which: | 152,000 | 148,712 | 97.8% |
I | PUBLIC DOMAIN | 140,000 | 137,008 | 97.9% |
1 | Pipelines rehabilitation, o/w: | 32,355 | 31,856 | 98.5% |
1.1 | Pipeline replacement | 32,205 | 31,764 | 98.6% |
1.2 | Safe disposals | 150 | 92 | 61.3% |
2 | Replacement of connection lines Danube crossing C1-C2 and C3-C4 Borcea arm | 81,185 | 81,127 | 99.9% |
3 | Modernization and monitoring of the cathodic protection system related to the NTS domestic and import - stage 2 | 414 | 401 | 96.9% |
4 | Consultancy and Technical Assistance | 25 | 0 | - |
5 | Tanks | 8,720 | 7,701 | 88.3% |
6 | Energy works | 1,316 | 1,315 | 99.9% |
7 | Telecommunication works | 105 | 103 | 98.1% |
8 | Pumping systems modernization | 2,289 | 1,868 | 81.6% |
9 | Stations/ramp modernization | 11,807 | 11,191 | 94.8% |
10 | Buildings, station fencing | 510 | 268 | 52.6% |
11 | Automation and SCADA works | 1,199 | 1,178 | 98.3% |
12 | Other works | 0 | 0 | - |
13 | Other expenses | 75 | 0 | - |
II | OPERATING DOMAIN | 12,000 | 11,704 | 97.5% |
2.1 | Investment objectives, o/w: | 7,706 | 7,554 | 98.0% |
1 | Pipelines rehabilitation | 748 | 633 | 84.6% |
2 | Building rehabilitations | 659 | 694 | 105.3% |
3 | LDH and tank cars | 2,289 | 2,275 | 99.4% |
4 | Other works | 3,360 | 3,305 | 98.4% |
5 | Intangible investments | 650 | 647 | 99.5% |
2.2 | Independent facilities and equipment | 4,294 | 4,150 | 96.7% |
Table 16 - The achievement of the investment program 2022 as compared to Program 2022
The degree of achievement of 2022 Investments Program, of approx. 98%, was mainly due to the speedy resolution of the problems that arose during the execution of the works through the measures adopted operatively: periodic meetings with the contractors; redesigning the pipeline route in areas where difficulties were encountered in obtaining consent to enter the land from the land owners; identifying and establishing technical solutions to continue and complete the works.
In 2022, a number of 30 Technical Projects, 8 solution studies, and 2 technical appraisals were endorsed by CONPET Technical and Economic Committee.
Significant investment objectives completed in 2022
Orlesti crude oil tank station; | |
- | The integration of 4 valves and 3 flame detectors in the fire detection and extinguishing system existing in Călăreți pumping station; |
- | Execution works for new tank construction for the crude oil storage, 2,500 cm, inside Biled loading ramp; |
- | Upgrade of Berca ramp; |
- | Replacement of crude oil pipelines 10” L1 and L2 Siliște-Ploiești on a length of about 300 m, located in Aricești Rahtivani, Prahova County (relocation of pipeline routes on the property of the company WOMA ECOSERV CONSTRUCT S.R.L., in total length of 747 m); |
- | Modernization and monitoring of the cathodic protection system related to domestic and import NTS- stage 2; |
- | Modernization parking shed Biled Ramp; |
- | Procurement of UPSs within 3-20 KVA power range; |
- | Replacement of 14 inch crude oil pipeline Constanța- Bărăganu, Cuza Vodă area, on a length of 550m; |
- | Upgrade of Imeci ramp; |
- | Protection of Ø 12ʺ and Ø 14ʺ Cartojani crude oil transport pipelines, route located between the rail lines CF Triaj Brazi and Ghighiului street, on a total length of 110 linear meters; |
- | Modernization of the technological pipeline connections Călăreți; |
- | Modernization of the centralized monitoring system related to crude oil and rich gas transport on the railway ramp; |
- | Replacement of pipeline section Constanța – Midia Ø24", Năvodari area, approx. 1100 m, stage I - Replacement of Constanta - Midia Ø24" pipeline section, Năvodari area, with a length of 541m; |
- | Replacement of the Ø10¾” Line 2 Siliste-Ploiesti crude oil pipeline in Brazi Stadium area– inside Petrobrazi Refinery, Prahova County, on a length of approximately 1,170 m and replacement of cleaning installation; |
- | Replacement of crude oil pipeline Ø10¾” LASCĂR CATARGIU- INDEPENDENȚA, (inv. no. 122406P/118536), domestic crude oil, on the section Capăt RK (2011) LASCĂR CATARGIU; |
- | irrigations major pipeline, diameter 10 ¾”, approx 3.5 km; |
- | Lifting installations; |
- | Registry and document management application; |
- | Support equipment for excavations; |
- | Transformation of LDH 1250 HP 860-2 in LEA; |
- | Pipe material transport semitrailer; |
- | Portable density meters intended for measuring density inside the tank; |
- | Dispatch building, Biled ramp; |
- | Complete equipment of self-contained compressed air breathing apparatus; |
- | Replacement of Ø8⅝” crude oil pipeline Vega-Brazi Refinery, in Petrobrazi Refinery area-SKIDs keyboard area, Prahova County, on a length of approximately 800 m and replacement of cleaning installation; |
- | Implementation of servers, quick storage and VmWare; |
- | Implementation of large capacity Storage Lent; |
- | Acquisition of electric cars charging stations. |
Significant investment objectives in progress on 31.12.2022
Public domain
- | Replacement of Ø 20ʺ Bărăganu-Călăreți crude oil transport pipeline along 6 lines (approx. 18.000 m), Călărași County; |
- | Replacement of Ø 20ʺ C4 - Bărăganu-Călăreți crude oil transport pipeline along 3 lines (approx. 600 m), C2-C3 along 6 lines (approx. 7900 m), Ialomita County; |
- | Replacement of connection lines Danube crossing C1-C2 and C3-C4 Borcea arm; |
- | Modernization and monitoring of the cathodic protection system related to domestic and import NTS- stage 2; |
- | Moreni crude oil tanks station; |
- | Constanța Fire Prevention and Security tank; |
- | Modernization of Potlogi pumping station; |
- | Modernization of pumping station Ochiuri; |
- | Rehabilitation works at Cireșu loading ramp; |
- | Modernization of Marghita ramp; |
- | Upgrade of Moreni station; |
- | Upgrade of Mislea station; |
- | Tele-transmission and tele-management of the power consumptions in CONPET locations; |
- | Pecica Fire Prevention and Security tank; |
- | Urlați fencing rehabilitation; |
- | The layout of a pipeline connecting Pietroșani and Petrobrazi refinery; |
- | Rehabilitation of the pump house, Constanta Sud station; |
- | Section of the pipeline connection Ø 8” Moreni – Mija (Valea Neagrӑ) in L1, L2 Silişte – Ploieşti approx.. 7200m and pig launcher/receiver stations. |
Operator Field
- | Electric power supply LEA loading post, Biled ramp; |
- | RG-type repair at LDH 92 53 0850 168-1 and transformation in LDE 700 CA-CA; |
- | Replacement of a crude oil section Ø 6⅝ʺ Urziceni-Albești area, in the vecinity of Bărbulești locality, on a length of approximately 2200m; |
- | Solution study and replacement of pipeline section Ø 6⅝ʺ Warehouse Petrom Orzoaia de Sus – Urlați crude oil station, about 1600 m. in length. |
Commissioning achieved in 2022 amounted to 60,089 thousand RON, out of which, per financing sources:
- | 45,569 thousand RON out of the modernization quota; |
- | 14,520 thousand RON out of other own sources. |
The main investment projects started in the previous years which still continue in 2022 are the followings:
- Modernization and monitoring of the cathodic protection system related to the NTS Domestic and import - stage II
In order to ensure the life of the crude oil transport pipelines, it is necessary to protect the buried metal pipes against corrosion through good quality insulation and by applying an adequate cathodic protection system.
Protection against external corrosion of the buried pipe is necessary because: ensures safe operation without damage from corrosion for at least 20 years, which can be extended at minimum cost up to 40 years and allows surveillance and maintenance operations - service of the condition of the tubular material with specific, low-cost technologies and methods.
The anti-corrosion protection system used for the import crude oil and domestic crude oil transport pipelines consists of: passive protection - anti-corrosion insulation, designed to separate the metal of the pipe from contact with the aggressive outdoor environment and active protection (cathode) - to complement passive protection - by using an electric current, which gives it the slow aging of the insulation.
The project was divided into two stages. Stage I, during 2017-2019, 109 locations and stage II, during 2019-2023, 30 locations.
By the end of 2022, have been executed SPCs in 128 locations (109 locations stage I and 19 locations stage II); the works execution continues for the other 11 locations.
- Replacement of connection lines Danube crossing C1-C2 and C3-C4 Borcea arm
The main pipelines for the transport of imported crude oil with Ø14'', Ø20'' and Ø28'' Constanța–Bărăganu have the route from OIL TERMINAL to the work site CONPET S.A. - C1, in Ialomita island between C2 and C3, and from C4 to Bărăganu station. Currently, the crossing of the Danube River and Borcea Arm is done through pipelines of Ø 123/4". The pipes at the under crossings are laid in trenches at 4 m below the sole of the riverbed, continuously concreted on a thickness of 10 cm in radius.
The undercrossing of the Danube and Borcea arm with the crude oil transport pipelines was carried out in two stages, in 1968, 4 Ø 12¾" lines were installed at the Danube undercrossing and 4 Ø 12¾" lines at the Borcea arm undercrossing, lines linked to the Ø14" Constanța-Pitesti major transport pipeline and in 1978 another 6 lines allocated to Ø20" and Ø28" pipelines were installed.
In 2003, the first corrosion detection inspection (works supplier- PIPETRONIX GERMANY) was carried out, followed by two more inspections (in 2008, works supplier – CALA ROMANIA and 2015-2016, works supplier - ROSEN GERMANY).
The obtained reports revealed that part of the lines that ensure the transport of crude oil through these under crossings no longer present safety in operation, requiring measures to ensure the safety in operation of the pipelines, including the closure of some of the lines.
To ensure optimal conditions for transport of crude oil and avoid the risk of further damage with serious environmental consequences, replacing or restoring crossings have been imposed.
By replacing the pipes in the afore-mentioned crossings, the following objectives will be achieved:
ensuring the functioning of the transport pipeline, on the pipeline section in question, under safety conditions and designed parameters; | |
- | eliminating the major risk of crude oil pollution with a harmful impact on the environment; |
- | safety in operation; |
- | reducing maintenance costs; |
- | increasing the service life; |
- | ensuring optimal energy efficiency conditions for the transport of crude oil to the designed parameters; |
- | major positive impact on the natural and human factor in these areas. |
In a global context marked by climate change, global warming, increase of pollution level but also by the concerns of institutions to combat the effects of these phenomena, the construction of new pipelines at the under crossing of the Danube and the Borcea arm, will help improve the quality of the environmental factors by ensuring the functionality of the crude oil transport pipelines under safety conditions and avoid the potential damages that may occur, in case of technical accidents.
In 2017-2019, was prepared and approved: The solution study on the Danube and Borcea undercrossing of the crude oil transported through the Constanta– Baraganu 14",20"and 28" pipelines, study prepared by. S.C. SNIF PROIECT S.A. Târgoviște.
Based on the solution study, on 30.08.2021, the contract no. L-CA 292, for the design and execution of works was signed by and between CONPET S.A. Ploiești with the Association CIS GAZ S.A. Mureș, as associate and leader of the Association and HORIZONTAL DRILLING INTERNAțIONAL S.A.S. Colombes, France, for “Replacement of connection lines related to the Danube C1-C2 and C3-C4 Borcea arm - Danube and Borcea undercrossing of the crude oil volumes transported via Constanța- Bărăganu 14”, 20”, 28” pipelines.
The contract was signed for the amount of 107,335.6 thousand RON VAT excluded, amount that includes design services and execution of works. Subsequently, two documents were concluded to supplement the works and the value of the contract by 2,764.7 thousand RON without VAT and the waiver of works in the amount of 939.9 thousand RON without VAT. The new value of the contract is 109,160.4 RON, VAT excluded.
The building permits were obtained in April 2022, and the execution works for both the Danube underpass and the Borcea Arm underpass carried out before the end of 2022 consisted in: the completion of the first 20" drilling under the Danube and two 20” and 28" drillings under the Borcea arm.
- Replacement of Ø 20ʺ C4 - Bărăganu crude oil transport pipeline along 3 lines (approx. 600 m), C2-C3 along 6 lines (approx. 7900 m), Ialomita County
- Replacement of Ø 20ʺ Bărăganu-Călăreți crude oil transport pipeline along 6 lines (approx. 18.000 m), Călărași County
The ∅ 20" import crude oil main pipeline was built in 1972 and is being served by the Constanța Sud 1 and Bărăganu Călăreți pumping and re-pumping stations.
The identification of the sections that were to enter the modernization process was made based on the inspection with smart pig. The respective sections are located between the sub-crossings from Danube C2-C3, Borcea C4-Bărăganu but also Bărăganu- Călăreți.
The execution of the works on the two sections began in 2022, the replacement works being carried out for the first section in proportion of 52%, completion date - July 2023, and for the second section the degree of completion was 89% until December 31, 2022, the completion date being March 2023.
During 2022 CONPET SA was involved in a total of 147 litigations. Of these, 64 disputes were settled definitively and irrevocably.
The most important disputes in which the company is involved are presented below:
a) Litigations regarding the ownership of tangible assets of the company
CONPET S.A. is involved in a single process regarding the claim of ownership of certain real estate, respectively:
Case File no. 2782/229/2018 – Ialomita County Tribunal – pending
Procedural status: Appeal
Parties: CONPET S.A.– plaintiff
Zacon Trandafir - respondent
Object: Conpet SA filed a summons for the named Zacon Trandafir so that the court to establish the absolute nullity of the sale-purchase contract no. 1047/03.02.1999, concluded between Conpet SA, as seller and Zacon Trandafir as buyer, ordering the defendant to pay the legal expenses. In the alternative, the defendant Zacon Trandafir is required to pay the equivalent value of the property at the fair market value established following the administration of a forensic technical expertise.
Clarifications: By Sentence no. 828/2021 of 29.07.2021, Fetesti Court rejects as unfounded the request for summons filed by the claimant S.C. CONPET S.A. in contradiction with the defendant ZACON TRANDAFIR, having as object the annulment of the deed (declaration of absolute nullity). It admits the counterclaim filed by the defendant-claimant ZACON TRANDAFIR, in contradiction with the claimant-defendant S.C. CONPET S.A. having as subject matter the finding of a valid conclusion of the contract concluded between the parties. It obliges the claimant to pay to the respondent the amount of 7,471 RON, as legal expenses (3,000 RON - lawyer's fee, 4,471 RON - judicial stamp duty). The court order was appealed by Conpet S.A..
By Decision no. 702/07.06.2022 the Prahova Tribunal dismisses the appeal as unfounded. It rejects the respondent’ claim for court costs as unfounded. Orders the appellant to pay to the respondent ZACON TRANDAFIR the sum of 2,000 RON as costs of the appeal proceedings, representing a lawyer's fee. The judgment may be appealed after communication.
b) Disputes related to the owners claims of the land transited by the Crude Oil National Transport System
On 31.12.2022, CONPET S.A. had before the courts a number of 15 cases in different procedural stages, having as object the claims of the landowners related to the lack of use of the land owned transited by the main pipelines component of the Crude Oil National Transport System. Among these, we list a number of 10 cases that we consider to be important in terms of the amount of the applicants' claims and representative through the legal content of the applications (the rest of the cases outlining some of the types of legal proceedings listed below):
1.File no. 3451/108/2016 **– Timisoara Court – pending
Trial stage: Appeal - retrial
By Decision no. 761/23.11.2017 the Timisoara Court of Appeal admits the appeal of the applicant Territorial Administrative Unit Pecica, Arad County, annuls the appealed judgment and sends the case for retrial to the Arad Tribunal. Decision no. 761/23.11.2017 was appealed by CONPET S.A. at the High Court of Cassation and Justice.
Mentions: The Territorial Administrative Unit of the city of Pecica has filed a petition requesting the court to order the obligation of the defendant Conpet S.A. to divert the crude oil pipeline that crosses a number of 22 plots of urban land, intended for the construction of houses, to pay the amount of 65,000 Euro representing the equivalent value of the house located in plot no. A141.7760/5/174, entered in L.B. no. 306869 because it can no longer be capitalized, to pay an annual rent, during the existence of the pipeline, as a result of the encumbrance of the areas shown above by the right of legal easement exercised by Conpet SA and order the defendant Conpet S.A. to the granting of compensations for the period 31.10.2014 – 31.05.2016 as a result of the limitation of the attributes of the property right of the 22 urban land plots and of the decrease of the circulation value of the land on the real estate market due to the restrictions imposed by Order 196/2006 of NAMR on construction. At the same time ruled the obligation of the respondent Conpet S.A. as to adjust every 3 years the amount of compensations to the circulation value at that time of similar plots of land and to the provisions of the future orders of ANRM.
By the Report dated 07.06.2018, the High Court of Cassation and Justice declared Conpet’s appeal as inadmissible, being promoted against a final judgment, which does not fit into the hypothesis regulated by Art. 483 par. 1 Code of Civil Procedure. By the conclusion of 10.10.2018, the High Court of Cassation and Justice basically admits the appeal declared by the claimant-defendant Conpet S.A. against the civil decision no. 761/A of November 23, 2017 issued by the Timişoara Court of Appeal – Second Civil Section.
By the Decision no. 615/22.03.2019 the High Court of Cassation and Justice admits the appeal filed by the appellant-defendant Conpet S.A., scrapps the decision under appeal and refers the case to a new trial to the same court of appeal –Timișoara Court of Appeal.
By Decision no. 306/07.06.2021 Timișoara Court of Appeal rejects the appeal declared by the appellant-claimant, the Territorial Administrative Unit of the City of Pecica. The sentence was appealed by the Territorial Administrative Unit of the City of Pecica.
On 21.09.2022, the High Court of Cassation and Justice ordered the communication of the report to the parties in order for them to formulate in writing a point of view on the report.
By Decision no. 614/15.03.2023 the HCCJ admits the appeal declared by the appellant-claimant A.T.U. PECICA town against the civil decision no. 306/A of June 7, 2020, pronounced by the Timişoara Court of Appeal – Civil Division II. It dismisses the appealed decision and sends the case for a new trial to the same court. Final.
Deadline: --
2. Case File no. 1372/212/2017 *– Constanta Court – pending
Stage of trial: Appeal
Cruceanu Alin Florinel filed a petition against CONPET S.A. requesting the court to rule the obligation of Conpet SA to pay damages equal to the market value of the real estate property with a surface of 460 sqm located in Lazu commune, street no. 29, Constanța county and of the real estate property with a surface of 460 sqm located in Lazu commune, 31 Luceafărului street, Constanța county, the value assessed at the amount of 30,000 Euro, 134,700 equivalent in RON; to rule the obligation of Conpet SA to pay the value of the lack of use of the land in the form of an annual rent for the last three years; to rule the obligation of Conpet SA to pay the court costs for the resolution of the present petition. The claimant subsequently set out his action on the second head of claim, claiming that the court should order Conpet SA to pay the amount representing the non-use of the two land buildings for the period between 10.12.2015 and the date of finality of the decision by which the first head of the claim was admitted.
Conpet filed a counterclaim requesting the obligation on the claimant to allow Conpet S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the two lands owned by the claimant Cruceanu Alin Florinel, located in Agigea commune, Lazu village, 29, respectively 31, Luceafărului street, Constanta County. The exercising of the right to legal servitude will be done on a 2.4-meter-wide corridor located along the Ø 20 ˝ crude oil transport major pipeline Constanţa-Bărăganu for the purpose of permanent access to the pipeline for the daily check of pipeline and execution of any repairs and the establishment of the amount of the annual rent stipulated by the law due by us the undersigned to the claimant in return for the exercise of the easement right.
Conpet also formulated a petition of summoning in guarantee of the MINISTRY OF PUBLIC FINANCES and the NATIONAL AGENCY FOR MINERAL RESOURCES (A.N.R.M.) so that if CONPET S.A. Ploiesti falls in claims regarding the claims of the claimants formulated in the legal petition to compensate us with the amount that we shall be obligated to pay the claimants.
Mentions: By Sentence no. 8561/14.07.2021 the Constanța County Court rejects, as unfounded, the exception of the lack of passive procedural quality invoked by the Romanian State through the Ministry of Public Finance, the NAMR and the Ministry of Energy. Dismisses as unfounded the plea of lack of quality of the Romanian state through the Ministry of Public Finance, NAMR. It admits the request formulated by the claimant CRUCEANU ALIN FLORINEL, against the defendants CONPET S.A., the Romanian State through the Ministry of Public Finance, the National Agency for Mineral Resources and the Ministry of Energy. It obliges the defendants, jointly and severally, to pay to the claimant the amount of RON 184,700 representing the market value of the land building with an area of 460 sq m located in Lazu Commune, 29 Luceafărul Street, Constanța County and the market value of the land building with an area of 460 sq m located in Lazu Commune, 31 Luceafărul Street, Constanța county. It obliges the defendants, jointly and severally, to pay to the claimant the amount of 22,164 RON representing the value of the lack of land use between 10.12.2015 -10.12.2018. It rejects, as unfounded, the request for impleader formulated by CONPET SA against the Ministry of Public Finances. It rejects, as unfounded, the impleader formulated by CONPET SA against the National Agency for Mineral Resources. It rejects, as unfounded, the counterclaim formulated by CONPET SA against CRUCEANU ALIN FLORINEL. It obliges the defendants jointly and severally liable to pay to the claimant the legal expenses in the amount of 8,414.28 RON represented by the stamp duty and the expert's fee. The court order was attacked with appeal by CONPET S.A., NAMR, the Romanian State through the Ministry of Public Finance and Cruceanu Alin.
By the Conclusion no. 1548/07.10.2021 it was admitted the exception for lack of jurisdiction of Civil Section 1 Constanta Tribunal and the jurisdiction for the settlement procedure in regard to the appeal was declined in favor of Civil Section 2 - Constanta Tribunal.
By Sentence no. 1003/08.07.2022, Constanța Tribunal rejects, as unfounded, the appeal filed by the applicant appellant CRUCEANU ALIN-FLORIN in opposition with the defendants CONPET S.A., the Romanian State through the Ministry of Public Finance, the National Agency for Mineral Resources and the Ministry of Energy. The National Agency for Mineral Resources, the Romanian State through the Ministry of Public Finance through the Regional Directorate of Public Finances Galati – County Administration of Public Finances Constanta and CONPET S.A. It changes in part the Civil Sentence 8561/14.07.2021, pronounced by the Constanţa Courthouse in the File no. 1372/212/2017, as follows: Admits the exception of the lack of passive procedural standing of the defendants the National Agency for Mineral Resources and the Romanian State through the Ministry of Public Finance - regarding the summons. It rejects the summons request filed by the claimant CRUCEANU ALIN-FLORIN against the defendants THE ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE and the NATIONAL AGENCY FOR MINERAL RESOURCES, as being filed against persons without passive procedural standing. It rejects, as unfounded, the summons request filed by the claimant CRUCEANU ALIN-FLORIN against CONPET S.A. It rejects, as unfounded, the request for summons in the guarantee formulated by the defendant CONPET S.A. against the NATIONAL AGENCY FOR MINERAL RESOURCES and the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCES. Admits the counterclaim filed by the defendant CONPET S.A. in contradictory with the applicant CRUCEANU ALIN-FLORIN. It establishes in favor of CONPET S.A. an easement right in a total area of 81 square meters on the claimant's lands consisting of the right of use over an area of 2.4 meters wide placed along the crude oil pipeline that undercrosses the claimant's land, as identified by the expert Datcu Dumitru by Annex to the Response to objections (f. 229 vol. 2 from the file of the Constanta Court) - blue pattern. Establishes the annual annuity owed by the defendant to the applicant at the amount of 693 RON. It forces the claimant CRUCEANU ALIN-FLORIN to pay the defendant CONPET S.A. the amount of 3,853.75 RON as legal expenses, representing: 1,704 RON judicial stamp duty paid to the fund, 649.75 RON judicial fee for appeal, 500 RON for topo expert fee and 1,000 RON for agricultural expert fee. The judgment was attacked with recourse by Cruceanu Alin Florin.
Deadline: 22.03.2023
3. Case File no. 18344/212/2017 - Constanta Court - in the course of settlement
Trial stage: First court
Mitu Dumitru and Mitu Rodica filed a summons requesting Conpet's obligation to pay compensations for the two plots of land located in Lazu village, Agigea commune, Constanța county affected by the route of some pipelines transporting petroleum products, as well as obliging the defendant to pay an annual rent for the lack of use on the land affected by the exercise of the right of legal easement, starting with 20.06.2014 and compensations in the form of an annual payment for affecting the use of part of the land on which the pipeline is not located, with the obligation to pay the legal expenses.
Conpet formulated a counterclaim/reconventional petition requesting the court to rule the obligation of the claimants to allow the company CONPET S.A. the exercise of the right of legal servitude instituted by the provisions of art. 7 and following of Law no. 238/2004 on the two plots of land owned by the claimants. The right of legal servitude shall be exercised on a 2.4-meter-wide corridor located along the F2 Ø 20 ˝ Constanţa-Bărăganu crude oil pipeline for the purpose of permanent access to the pipeline for the day-to-day inspection of the pipeline condition and for performing any repairs and to set the amount of the annual rent prescribed by the law owed by Conpet to the claimants in exchange for the exercise of the right to legal servitude. Conpet also formulated a petition of summoning in guarantee the MINISTRY OF PUBLIC FINANCES and the NATIONAL AGENCY FOR MINERAL RESOURCES (A.N.R.M.) so that if CONPET S.A. Ploiesti falls in claims regarding the claims of the claimants formulated in the legal petition to compensate us with the amount that we shall be obligated to pay the claimants.
Deadline: Sentence postponed until 23.03.2023
4. Case File no. 220/262/2017 *– Dambovita County Tribunal – pending
Stage of trial: Appeal - reconsideration
Chivu Ion filed a petition requesting the court to rule the obligation of Conpet SA to divert the crude oil pipeline passing through his property in surface of 1,753 square meters located in Ocniţa commune T14, P114, the establishment of the access location with the obligation of Conpet S.A. to pay a related annual rent both for the access road as well as for the pipeline that damages the land and compensations for the land affected by the pipeline.
Clarifications: By the judgment no.1000/05.11.2019 the Moreni Court partially accepts the main part of the petition. The court partially admits the counterclaim.
The judgment was attacked with appeal by Conpet SA and Chivu Ion.
By Decision no. 223/02.06.2020 the Dâmbovița Tribunal accepts the appeals, annuls the judgment appealed and sends the case back to the first court.
By the sentence no. 694/06.10.2022 Moreni Law Court admits the request in part. The decision was appealed by Chivu Ion.
The sentence is pending.
Deadline: 23.03.2023
5. Case File no. 5413/204/2017 *– Prahova Tribunal – pending
Stage of trial: First court
Dobrogeanu Dumitru and Dobrogeanu Păun Ioan have submitted a sue petition requesting the court to rule the obligation of CONPET SA to pay an annual rent for the land plots occupied by the two oil products pipelines (crude oil) starting 01.07.2014 and in the future, for the entire duration of the pipelines, to pay the compensation for the losses incurred by not reaching certain economic objectives on the remaining area between the two pipes after their restriction and the area along the national road DN1 (E60) and payment of court costs. The first head of claim was estimated by the claimants in the amount of 48,000 Euro/year (220,000 lei), and the second in the amount of 25,000 lei/year.
By the Judgement no. 2446/28.08.2018 the Prahova Tribunal admits the exception of the lack of passive capacity to stand trial, invoked by the defendant National Agency for Mineral Resources. It dismisses the action, in contradiction with that defendant, as being brought against a person without procedural capacity. It admits the exception of the res judicata. It dismisses the claim filed against the defendant SC Conpet SA, as there is res judicata. It finds that the defendants have not applied for legal expenses. The decision was appealed by Dobrogeanu Dumitru.
Clarifications: By the decision no. 2804/11.11.2019 the Ploiești Appellate Court rejects the appeal declared by the appellant Dobrogeanu Dumitru as unjustified. Admits the exception of the inadmissibility of the appeal. The court rejects as inadmissible the appeal declared by the appellant Dobrogeanu Păun Ioan. The decision was attacked with recourse by Dobrogeanu Dumitru and Dobrogeanu Păun Ioan.
By the Conclusion dated 22.10.2020 the High Court of Cassation and Justice admits in principle the appeals declared by the applicants Dobrogeanu Dumitru and Dobrogeanu Păun Ioan and sets a deadline for their trial.
By Decision no. 206/04.02.2021 the High Court of Cassation and Justice rejects the appeal declared by the applicant Dobrogeanu Păun Ioan against the civil decision no.2804 of November 11, 2019, pronounced by the Court of Appeal Ploiesti, Civil Section I. Admits the appeal declared by the applicant Dobrogeanu Dumitru against the same decision. It scrapps the appealed decision and the civil sentence no. 2446 of August 28, 2018 of the Prahova Court and sends the case for retrial to the Prahova Court.
Deadline: 23.03.2023
6. Case File no. 1122/284/2019 – Dâmbovița County Tribunal – pending
Stage of trial: Appeal
Sotir Mădălina Rebeca filed a lawsuit requesting the court to order Conpet SA to compensate her with the amount of 25,000 Euro for the land area of 523 sqm, construction yards category, land surface of the claimant located in Cojasca commune, Dâmbovița county having the cadastral no. 72587, sub-crossed by the Conpet pipeline.
Conpet SA has filed a counterclaim requesting:
1. The obligation of the claimant Sotir Mădălina Rebeca to allow the company CONPET S.A. the exercise of the right of legal servitude/easement established by the provisions of art. 7 and foll. of Law no. 238/2004 on the land owned by her, located in Cojasca commune, Cojasca village, Dâmbovița county. The right of legal servitude shall be exercised on a 2.4 meter wide corridor located along the Ø 14 3/4˝ major crude oil transport pipeline Cartojani-Teleajen Refinery (Lukoil) for the purpose of permanent access to the pipeline for the day-to-day inspection of the pipeline condition and for performing any repairs. The exercise of the easement right is to be carried out throughout the existence of the pipeline located on the claimant's land but not later than the date of the termination of the concession oil contract concluded by us, the undersigned company CONPET S.A., with the Romanian State.
2. The establishment of the amount of the annual rent provided by the law due to us, the undersigned company CONPET S.A., to the claimant Sotir Mădălina Rebeca in exchange for exercising the right of legal servitude/easement starting from the date of the definitive decision given in the present case, rent consisting in the value of the annual use of the plot of land affected by the exercise of servitude/easement.
Clarifications: By the Decision no. 1734/03.12.2021 Răcari Courthouse partially admitted the request for summons filed by the claimant-defendant Sotir Mădălina Rebeca, in contradiction with the defendant-claimant CONPET SA, summoned as impleader being the Romanian State, through the Ministry of Public Finance, and the National Agency for Mineral Resources. It obliges the defendant-claimant to pay to the claimant-defendant the amount of 3504 Euro representing compensations for the lack of use of the land building, with an area of 523 sqm, registered in the land book no. 72587 of Cojasca locality, Dâmbovița County. It admits the request for impleader of the Romanian State, through the Ministry of Public Finance, formulated by the defendant-claimant. It obliges the impleaded person to pay to the defendant-claimant the amount of 3504 Euro representing compensations due by the defendant-claimant to the claimant-defendant for the lack of use of the land, of 523 sqm, registered in the land book no. 72587 of Cojasca locality, Dâmbovița County. It admits the counterclaim filed by the claimant defendant Conpet S.A. in contradiction with the claimant-defendant Sotir Mădălina Rebeca. It obliges the claimant-defendant to allow the access of CONPET SA, on the land owned by the former, located in Cojasca commune, Cojasca village, Dâmbovița county, on a 2.4-meter-wide corridor, located along the main crude oil transport pipeline with a diameter of 14 3/4”, Cartojani-Teleajen Refinery (Lukoil), for the purposes provided by the provisions of art. 7 et seq. of Law no. 238/2004, throughout the existence of the pipeline located on the claimant's land, but not later than the date of termination of the oil concession agreement concluded by CONPET S.A. with the Romanian State. It obliges the defendant-claimant to pay to the claimant-defendant an annual rent of 14.5 Euro, in exchange for the right of access on the land, from the date of finality of the decision until the date of termination of the concession agreement. It obliges the defendant-claimant to pay to the claimant-defendant the amount of 3,855 Ron representing legal expenses. It obliges the claimant-defendant to pay to the defendant-claimant the amount of 2,020 Ron representing legal expenses. It compensates the legal expenses owed to each other by the defendant-claimant and the claimant-defendant, and in the end the defendant-claimant will pay the claimant-defendant the amount of 1,835 Ron. Conpet, Sotir Mădălina Rebeca and the Romanian State by the Ministry of Public Finance filed an appeal against this decision.
By Decision no. 381/26.05.2022 the Dâmbovița Tribunal rejects the appeals filed by the defendant applicant Conpet S.A. and the summoned under warranty the Romanian State through the Ministry of Public Finance against the conclusion dated 25.09.2019 as unfounded. Admits the appeals filed by the defendant plaintiff Conpet S.A. and the summoned under warranty the Romanian State through the Ministry of Public Finance against the civil sentence no.1734 from 03.12.2021. Dismisses the appeal brought by the defendant applicant Sotir Mădălina Rebeca as unfounded. It changes the judgment in part to the effect that it dismisses the claim and the claim for a guarantee as unfounded and removes the provisions relating to the order of the defendant applicant to pay the costs and to set aside the costs. It retains the conclusion and the rest of the sentence appealed. It orders the appellant claimant defendant, Sotir Mădălina Rebeca, to pay the appellant defendant, Conpet S.A., the amount of RON 152.5 legal expenses. The decision may be appealed after communication.
7. File no. 4395/270/2020* - Onești District Court
Procedural status: First court
Object: Oneşti municipality and the Local Council of Oneşti Municipality, Bacău County sued Conpet S.A. requesting the court:
“1. The obligation of the defendant at the conclusion of the agreement for the exercise of the right of legal easement over the lands with an area of 11,474.5 sq. m., crossed and affected by crude oil transport pipelines within the municipality of Onești, equivalent to the payment of an annual rent, during the existence of the pipelines, to the local budget of Onești municipality, determined according to the principle of the least violation of the property right and calculated taking into account the circulation value of the affected real estate, established under the law, at the time of the damage.
2. Obligation of the defendant to pay material damages, representing the consideration of the lack of use of land in the surface of 11,474.5 sq.m. under crossed and affected by crude oil transport pipelines within the radius of the municipality of Onești, established according to the Market Study approved by the Decision of the City Council no. 199 of 29.11.2018, respectively according to the Updated Market Study approved by the City Council Decision no. 122 of 29.06.2020, calculated starting from 2017 until the date of conclusion of the Convention for the exercise of the right of legal servitude on such land, plus late increases, interest and late payment penalties in the amount provided for in the Code of Tax Procedures applicable during that period.
3. The obligation of the respondent to pay the trial costs incurred by this trial.”
Deadline: 05/09/23
8. Case File no. 5022/270/2020 - Onești Court - in the course of settlement
Stage of trial: Merits
Parties: Bacău Regional Water Company S.A. - Applicant
Radu Marian - Counterclaimant defendant
S.C. E.On Energie Romania - Counterclaimant
S.C. Delgazgrid S.A. - Counterclaimant
S.C. Transgaz S.A. - Counterclaimant
S.C. Conpet SA - Defendant and counterclaimant
The General Secretariat of the Romanian Government - Counterclaimant
The Romanian State by the Ministry of Public Finances - Re conventional defendant
Object: By counterclaim, the defendant Radu Marian requested that the applicant and the other counterclaims, including our subscribed Conpet S.A., be ordered to:
1. “prior purchase of the servitudes of passage, because we had no advantage, no favor, but only damages, caused us only trouble and damage, although all were obliged not to aggravate the situation of the fund served, not to cause damage to the owner of the fund served by the exercise of servitude, but on the contrary, to contribute to preserve it and even improve it, they were obliged to conclude an agreement, or expropriation for all the said immovable property, taking into account the fact that all those goods are in the transport lane which is of public utility established by the laws mentioned, the constructions were carried out with their consent, but after a right and prior compensation including the payment of claims, damages claimed up to the time of actual expropriation or real estate exchange of value equal to the amount claimed, if it suits us, or even other variants if we are convenient to make a counterclaim against the applicant and bring the applicant and the following defendants to court.”
2. “The obligation of the defendants to move the transport networks located on its property, to another location, at a distance of minimum 20m from the limits of our property, at their expense and until the network is moved, demand the immediate cessation of transport on these infrastructures until they agree to pay the damages and will guarantee that in case of damage resulting in material or human damage, they will accept our claims and will compensate us immediately without further comments.”
3. "The obligation of the defendants to bring the land in the state it was in before, the dismantling of the manifold illegally placed by Transgaz".
4. "The obligation of the parties jointly and severally liable to pay compensation of 1,000,000 Euro (one million) in this case for infringement of fundamental rights and freedoms, for all criminal activity carried out to date and for all material and non-material damage caused, plus a monthly fee of 5,000 Euro (five thousand) and the tax to be paid to the state for this fee for each defendant, injured party, respectively for me and my wife, in the amount valid at the time of filing this counterclaim, summons in tort proceedings, at the Onești Courthouse, at the Bacău Court, for every month since 1990 when we became owners of the first plot of land and the claimant and the other defendants transport on these transport networks, illegally located on our property until present, a value that in the future requires to have a periodic indexation ex officio, equal to the coefficient of the minimum wage, as a reference index and to be transmitted to our descendants who will own these goods (buildings, land, everything on them, etc.) after our death, as long as these transport networks exist.”
5. “obligation of the defendants in the event of damage resulting in material, moral or life damage to compensate us in advance for the repair of the damage, both for damage caused by the damage and for damage caused in the event of the repair of the damage. We also request compensation for damage caused by previous damage and its remediation, as well as prior compensation for damage caused by current damage and the damage caused by its remediation.”
6. “The obligation on the claimant and the defendants to pay the costs of the proceedings, or where there is no such legal possibility, pursuant to Art. 90, Para. 1 and 2, Letters a, b and c and Para. 3 of the Code of Civil Procedure, I make a request for legal aid under the terms of the special law on public legal aid, specifically, the granting of exemptions both for the payment of this stamp duty and for any taxes during the whole process until the damage is paid, because we do not have any material possibilities to support this civil process without jeopardizing our own maintenance and our family.”
Conpet filed a counterclaim in this case, requesting the court:
1. To order the claimants Radu Marian and Radu Elena to allow CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the arable land outside the town, their property, located in the city of Tg. Ocna, no. 6 Progresului street, Bacău County. The exercise of the right of legal easement is to be done on a corridor 2.4 meters wide located along the crude oil transport pipeline Ø 10 3/4˝ Vermești - Tg. Ocna, for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and the execution of any repair works. The exercise of the easement right is to be carried out throughout the existence of the pipeline located on the claimant's land but not later than the date of the termination of the concession oil contract concluded by us, the undersigned company CONPET S.A., with the Romanian State.
2. The establishment of the amount of the annual rent provided by the law due by us, the undersigned company CONPET S.A., to the claimants Radu Marian and Radu Elena in exchange for exercising the right of legal servitude/easement starting from the date of the definitive decision given in the present case, rent consisting in the counter value of the annual use of the plot of land affected by the exercise of servitude/easement.
At the same time, Conpet also formulated in the case a Request to show the holder of the right by which I indicated as holder of the property right over the crude oil transport pipeline Ø 10 3/4˝ Vermești - Tg. Ocna, with inventory number 120036/P.I.F. 1952 located on the arable land outside the town of the claimants Radu Marian and Radu Elena located in the city of Tg. Ocna, no. 6 Progresului street, Bacău County, the Romanian State represented by: The Ministry of Public Finances and the National Agency for Mineral Resources.
Clarifications: By the Conclusion of 03.11.2021, the Onești Courthouse admitted the exception of the inadmissibility of the counterclaim formulated by the defendant Radu Marian in contradiction with the defendants E.On Energie România SA, Delgazgrid SA, Transgaz SA, Conpet SA, the General Secretariat of the Romanian Government and the Romanian State through the Ministry Public Finance, motivated by the fact that the conditions of art. 209 para.1 of the Code of Civil Procedure, and will reject the counterclaim regarding these defendants, motivated by the fact that the claims of the defendant Radu Marian in contradiction with these 6 defendants do not derive from the same legal relationship and are not closely related to the claim brought before the court by the lawsuit. However, the 6 defendants will also appear in the Ecris program on the summons. The court finds that this trial will be between CRAB Bacău and Radu Marian - the main claim and the counterclaim. All the exceptions and requests invoked by the 6 defendants will no longer be questioned, compared to the solution of admitting the exception of inadmissibility of the counterclaim in contradiction with these defendants.
By the Civil Sentence no. 505/30.03.2022, the Onești Courthouse admitted the request made by the claimant S.C. COMPANIA REGIONALĂ DE APĂ BACĂU S.A, in contradiction with the defendant RADU MARIAN. Orders the defendant to allow the access of the intervention teams to the land owned by him, located in Târgu Ocna, for carrying out the intervention works for refurbishments, repairs, revisions, removal of damages to the water pipe that undercrosses the defendant's land. Finds that the plea of inadmissibility of the counterclaim filed by the defendant reconvening plaintiff RADU MARIAN in contradictory with the defendants S.C E.ON ENERGIE ROMÂNIA S.A., DELGAZGRID S.A., TRANSGAZ S.A., S.C. CONPET S.A., the GENERAL SECRETARIAT of the ROMANIAN GOVERNMENT and the ROMANIAN STATE by the MINISTRY of PUBLIC FINANCE. Dismisses as inadmissible the counterclaim filed by the defendant reconvening plaintiff RADU MARIAN in contradictory with the defendants S.C. E.ON ENERGIE ROMÂNIA S.A., DELGAZGRID S.A., TRANSGAZ S.A., S.C. CONPET S.A., the GENERAL SECRETARIAT of the ROMANIAN GOVERNMENT and the ROMANIAN STATE by the MINISTRY of PUBLIC FINANCE. Rejects the exception of the lack of the passive procedural quality of the defendant S.C. Bacău Regional Water Company S.A., invoked by it through the response to the counterclaim. Dismisses as inadmissible the counterclaim filed by the defendant reconvening plaintiff RADU MARIAN in contradictory with the defendants S.C. S.C. BACĂU REGIONAL WATER COMPANY S.A. The judgment may be appealed against after communication.
Conpet made an application for the completion of the Civil Sentence no. 505/30.03.2022.
By Decision nr. 1353/10.08.2022 the Onești Court granted the request for completion of the device formulated by CONPET S.A. and completed the operative part and the minutes of the civil sentence no. 505/30.03.2022 pronounced in file no. 5022/270/2020 by the Onești District Court, in the sense that in the operative part will be mentioned the solution given to the application for the award of costs made by Conpet: “Orders the defendant Radu Marian to pay ......to the defendant CONPET S.A. the amount of 40 lei, by way of court costs, representing the judicial stamp duty.” The judgment may be appealed after communication.
9. Case File no. 1657/91/2020 *– Vrancea Tribunal – pending
Stage of trial: Merits
Parties: Vasile Maria Ilaria - at S.C.P.A. Buruian, Caracaş and Associates - Plaintiff
Dragu Georgeta - at S.C.P.A. Buruian, Caracaş and Associate - Plaintiff
The company Conpet SA Ploiesti - defendant
The Romanian State - by the Ministry of Public Finances - defendant
The National Agency for Mineral Resources - defendant
Object: By the request for legal action, the plaintiffs Vasile Maria Ilaria and Dragu Georgeta asked the court to:
A. In particular, to oblige the defendant to pay an annual rent of 496.64 Euro for the pipe protection area belonging to the defendant and passing through the private property of the undersigned, starting from the date of registration of this application for legal action;
B. In particular, to oblige the defendant to pay an overall compensation of 508,080 Euro for the assignment of the attribute of use of the good according to its intended purpose, i.e. that the undersigned cannot build construction on the private property;
C. Mainly, order defendant to pay legal interest on the annual rent provided for in item A, starting from the date of registration of the present summons.
D. Mainly, order the defendant to pay legal interest for the global indemnification provided for in item B, starting from the date of registration of the present summons.
E. In the alternative, we request you to order the other two defendants to pay the amounts indicated in the preceding paragraphs.”
Conpet filed a counterclaim in this case, requesting the court:
1. To oblige the plaintiffs Vasile Maria – Ilaria, Dragu Georgeta and Dragu Maria to allow the company CONPET S.A. the exercise of the right of legal services established by the provisions of Art. 7 et seq. of Law no. 238/2004 on the land owned by them, situated in Focsani city, Vrancea County. The exercise of the right of legal easement is to be carried out in a passage of 2.4 meters wide located along the Ø 20 ˝ Bărăganu - Borzești/Rafo Onești crude oil transport pipeline standing for purposes of permanent access to the pipeline in order to verify the day-to-day management of the status of the pipe and the execution of any repair works. The exercise of the easement right is to be carried out throughout the existence of the pipeline located on the claimant's land but not later than the date of the termination of the concession oil contract concluded by us, the undersigned company CONPET S.A., with the Romanian State.
2. To determine the amount of the annual fee stipulated by the law due by us, the undersigned CONPET S.A., to the claimants Vasile Maria – Ilaria, Dragu Georgeta and Dragu Maria in exchange for exercising the right of legal services, consisting in the consideration for the annual use of the land affected by the practice of legal servitude.
Clarifications: By the Conclusion no. 71/09.03.2021 Vrancea Tribunal Civil Section I declines jurisdiction to hear the case in favor of the Second Civil Section of the Vrancea Tribunal.
Deadline: 21.03.2023
10. Case File no. 32294/299/2020 - Bucharest District 1 Courthouse - in the course of settlement
Stage of trial: Merits
Parties: CONPET SA – defendant - counterclaimant
Bob Mihăiță - claimant-defendant
NAMR - defendant
Object: Bob Mihăiță files a summons requesting the court to order:
1. The obligation of Conpet SA and NAMR to move the crude oil pipeline crossing the land owned by the claimant located in Cernavoda, plot 1, plot A6/2, Constanța county.
2. The establishment of the equivalent value of the lack of use, for a period of three years, prior to the formulation of the summons, amounting to 150,000 RON;
3. In the alternative, the obligation of Conpet SA to pay an annual rent for the use of the land owned by the claimant, from the date of filing the summons, in the amount of 5 Euro/sq.m./year for the area of 14,645 sq. m., land affected by the protection and safety area, during the existence of legal easement.
4. Payment of legal fees.
Conpet formulated the counterclaim/re conventional petition requesting the court:
1. To order the claimant to allow CONPET S.A. the exercise of the right of legal servitude established by the provisions of Art. 7 et seq. of Law no. 238/2004 on the land owned by the claimant Bob Mihăiță located in Cernavoda, plot 1, plot A6/2, Constanța County. The exercise of the right of legal servitude is to be carried out on a 2.4 meter wide corridor located along each of the main crude oil transport pipelines that under-cross the claimant's land, respectively the F1 main crude oil transport pipeline Ø 14¾ ", F2 main crude oil transport pipeline Ø 20 ", and Pipeline 28 Constanța - Bărăganu of crude oil transport Ø 28", for the purpose of permanent access to pipelines for daily verification of the condition of pipelines and execution of possible repair works. The exercise of the right of legal servitude is to be carried out throughout the existence of the pipelines located on the land of the claimant, but no later than the date of termination of the oil concession agreement concluded by us, the undersigned Conpet SA, with the Romanian State;
2. To establish the amount of the annual rent provided by law due by us, the undersigned, to the claimant in exchange for exercising the right of legal servitude.
Conpet S.A. filed an impleader of the ROmania STATE represented by the Ministry of Finances and NAMR.
Conpet formulated a request of identifying the holder of the right in rem.
Clarifications: By the Conclusion of 06.08.2021, the Bucharest District 1 Courthouse rejects the exception of the lateness of the request for impleader and of the request for showing the right holder, invoked by the National Agency for Mineral Resources, as unfounded. It rejects the exception of the lack of representative capacity of the National Agency for Mineral Resources, invoked ex officio, as unfounded. It rejects the request for an impleader from the Romanian State, by the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. It rejects the request to show the right holder of the Romanian State, through the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. The conclusion can be appealed with the merits.
Deadline: 04/18/23
c) Litigations related to the structure of the share capital
CONPET S.A. has pending before courts 1 litigation, respectively:
Case File no. 5212/105/2018 – Ploiești Court – pending
Stage of trial: Appeal + Recourse
Proprietatea Fund SA filed a petition for trial requesting the court to rule the following:
1. To request CONPET to pay the amount of 734,747.04 RON representing the net value of dividends related to a percentage of 6% of Conpet’s share capital, respectively for a number of 524,366 shares held by the claimant by the registration date of the OGMS of CONPET on 25.04.2007 (i.e. 14.05.2007), related to the financial year 2006,
2. Rule Conpet to pay damages, respectively the legal interest related to the dividends from the due date of the amount requested in item 1 and until the date of filing the summons (i.e. 09.11.2018) in the amount of 579,015.97 RON.
3. Rule Conpet to pay thereafter the legal interest related to the net value of the dividends, from the date of filing the summons and until the actual payment of the requested amounts.
4. Rule Conpet to pay the legal fees borne by this dispute.
Clarifications: Conpet S.A. filed an impleader of the Romanian State through the Ministry of Finance and A.A.A.S.
By the Conclusion of 25.06.2019 the Prahova Tribunal rejects as inadmissible the request for guarantee call of the Authority for the Administration of State Assets, formulated by the respondent Conpet S.A. An appeal was lodged against this decision of the Court by Conpet and the Romanian State through the Ministry of Public Finance. By the same Conclusion of 06/25/2019, the court admitted in principle the impleader of the Romanian State through the Ministry of Public Finance, formulated by the defendant Conpet S.A. and rejected as unfounded the plea of the lack of passive procedural quality of the Romanian State through the Ministry of Public Finance. The appeal was registered before the Court of Appeal Ploiesti with no. 5212/105/2018/a2. By the Decision no. 515/05.11.2019 the Court of Appeal Ploiesti admits the exception of the inadmissibility of the appeal declared by the Ministry of Public Finances. The court rejects this appeal as inadmissible. The court rejects the exception of the lack of interest and the exception of the inadmissibility of the appeal declared by Conpet SA invoked by Fondul Proprietatea. Final.
By the Conclusion of 20.09.2019, the Prahova Tribunal suspends the trial of the case until the settlement of the appeals made against the decision pronounced on 25.06.2019. This conclusion remained final by non-recurrence.
By Sentence no. 633/02.06.2021 the Prahova Tribunal rejects as ungrounded the exception of the prescription of the right to action. It admits the action. It obliges the defendant SC CONPET S.A. to pay to the applicant the amount of 734.747,04 RON representing the value of dividends, of 579,015.97 RON, representing dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of dividends from 09.11.2018 until the actual payment of the main debt. It admits in part the impleader. It obliges the impleaded Romanian State to pay to the defendant SC CONPET SA, the amount of 734,747.04 RON, representing the value of dividends, and the legal interest related to this amount starting with 17.12.2018 and until the date of restitution to the defendant of the amount of 734,747.04 RON. The court order was appealed by Conpet S.A..
By Decision no. 814/01.07.2021 the Prahova Tribunal admits the request for correction of the material error made by the claimant. It corrects the material error into the content of paragraph 3 of the operative part of sentence no. 633/02.06.2021 pronounced by the Prahova Court, in the sense that it is written: “It obliges the defendant S.C. Conpet S.A. to pay to the claimant the amounts of 734,747.04 RON representing the main debit, of 579,015.97 RON, representing dividends for the period 26.10.2007 - 09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 until the actual payment of the main debit.” It admits the request for completion of the decision made by the claimant. It orders the completion of the civil sentence no. 633/02.06.2021 in the sense that it also provides: It reduces to 70,000 RON the fee of the claimant's lawyer. It obliges the defendant S.C. Conpet S.A. to pay the claimant the following legal expenses: 20,347.63 RON representing judicial stamp duty, 4,300 RON expert fee, 8,481.87 RON expert fee, 70 RON lawyer's fee and 1,125 RON other expenses. It obliges the summoned in guarantee the Romanian State to pay to the defendant SC Conpet S.A. legal expenses in the amount of 16,943 RON. The decision was appealed by Conpet S.A.
Deadline: 29.03.2023 (Appeal)
d) Disputes brought before the administrative court
CONPET S.A. Has 2 disputes pending before courts, respectively:
1. Case File no. 5971/2/2022 – Bucuresti Court of Appeal – pending
Procedural status: Merits
Parties: OMV Petrom SA - claimant
NAMR - defendant
CONPET S.A. defendant
Object: OMV Petrom asks the court, by the decision it will dispose, to order:
1. Having regard to Order 229/2021:
1.1. Cancellation in part of article 1 of Order 229/2021 regarding the tariffs set out in Annex 1 and Annex 3 and, accordingly, of Annexes 1 and 3 of the Order 229/2021; and, as a consequence,
1.2. Ordering NAMR to issue a new order for the approval of the transport tariffs through the National Transport System of crude oil, rich gas, condensate and ethane for 2022, which would include tariffs modified accordingly in terms of DOMESTIC tariffs (Annex 1) and import tariffs for refineries in the Ploiesti Basin (Annex 3), as a result of the recalculation of the tariffs included in Order 229/2021 in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of primary and secondary petroleum and competition law, as set out in the present application for summons;
2. With regard to Order 53/2008, the annulment in part of art. 3-8 of the Annex to Order no. 53/2008, as well as the obligation of NAMR. issue a new order which should properly supplement Order no. 53/2008, by reference to the following:
2.1. the method of determining in the Methodology the operating cost lacking transparency and clarity, with regard to (i) its components, the structure of each of these elements, not specifically foreseen, together with (ii) the algorithm for calculating the operating cost by reference to these elements and (iii) by taking into account only those elements which constitute, by their nature, operating costs, so that these secondary normative provisions are aligned with the requirements of Art. 20 of the Petroleum Law;
2.2. the algorithm for determining the modernization rate which does not provide in a specific, clear and transparent manner (i) the actual percentage of the modernization rate, (ii) the basis on which it applies, (iii) the concrete investments for which the modernization quota will be paid by the beneficiaries of the transport system, (iv) how to manage the surplus amounts received as a modernization quota and not used by the end of the financial year, which have been collected for the realization of investments, by taking these amounts into account in the calculation of the modernization quota to be paid by the beneficiaries in the following year, by reference to the investments envisaged therein and such amounts available for investments carried over from previous years, as well as (v) the management of bank interests received by the holder of the concession agreement as a result of the deposit of amounts received as a modernization quota and not used by the latter, for the purpose of using interest rates for the same purpose and taking into account these amounts in the calculation of the modernization quota that beneficiaries have to pay in the following year with this title, so that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law;
2.3. the algorithm not resulting in a specific, clear and transparent manner (i) how to determine the level of the profit rate considered to be reasonable, or (ii) a profitability range whose lower and upper limits are established on the basis of comparative studies, by reference to the practice of other comparable European transport operators in this field, as well as (iii) specific requirements for transparent justification by CONPET of studies substantiating any increases in profitability rates considered in the setting of transport tariffs so that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law;
2.4. the pricing schemes that are not currently focused on similar criteria and calculations for the two subsystems regulated thereby (i.e. DOMESTIC and IMPORT) to meet the requirements of ensuring equal treatment among the beneficiaries of the public transport service for the two types of subsystems, so that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law;
2.5. the procedural elements ensuring in a clear, transparent and efficient manner the right of CONPET clients to express their point of view on the proposed tariffs advanced for approval by CONPET, on the basis of specific documentation made available thereto, respectively to the requests for revision/update of the tariffs transmitted by CONPET to NAMR and the related documentation, as well as to receive a reasoned response from the NAMR on the points of view formulated whether they are not taken into account in whole or in part by the NAMR, in such a way that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law and the transparency requirements applicable to the adoption of normative acts in compliance with the general European and national principle of good administration.
3. Order the respondent to pay the court costs.
Deadline: 25.04.2023
2. Case File no. 7035/2/2022 – Bucuresti Court of Appeal – pending
Procedural status: Merits
Parties: OMV Petrom SA - claimant
NAMR - defendant
CONPET S.A. - defendant
Object: The court is requested that, by the judgment that will be pronounced, order:
1. Partial annulment of the art. 3 of Addendum no. 2 regarding the tariffs on the DOMESTIC subsystem and the IMPORT subsystem charged for the transport services provided by Conpet and established by the Order no. 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with NAMR;
2. Partial annulment of the art. 1 and 4 of Addendum no. 2, 6 and 9, respectively of art. 1 and 3 of Addenda no. 3, 4, 5, 7 and 8 by which the duration of the Transport Contract was extended for the period 01.01.2022 - 31.08.2022 with the application of the new tariffs approved by the Order 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with NAMR and, as a consequence,
3. The obligation of CONPET to pay to the Company, as compensation as a result of the partial cancellation of the Addenda, but also its illegal act of providing erroneous data that was the basis of the tariff development process by NAMR based on the Order no. 229/2021 and then upon their payment by the Company based on the Additional Acts, of the amounts representing:
(i) the difference between the amount of the tariffs provided for in the Addendum no. 2 to the transport contract, concluded as a result of the new tariffs adopted by the Order 229/2021, paid by the Company in the period 01.01.2022-31.08.2022, as a result of the extension of the contractual period through the Addenda and the amount of the tariffs that will be established as legal in the result of the administrative litigation proceedings carried out by the Company r with NAMR in respect thereof, updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference;
(ii) the difference between the amount of tariffs paid by the Company for the transport of crude oil, through the COUNTRY subsystem, from the Midia Terminal, and the amount of the tariffs set proportionally, by reference to the DOMESTIC and IMPORT tariffs depending on the subsystem actually used for the transport of marine crude oil, updated in depending on the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the DOMESTIC subsystem was illegally calculated and paid:
-13,905 tons from the art. 2 letter a) from Addendum no. 4 for March 2022;
-13,171 tons from the art. 2 letter a) from Addendum no. 5 for April 2022;
-13,307 tons from the art. 2 letter a) from Addendum no. 6 for May 2022;
-12,633 tons from the art. 2 letter a) from Addendum no. 7 for June 2022;
-12,072 tons from the art. 2 letter a) from Addendum no. 8 for July 2022;
-12,900 tons from the art. 2 letter a) from Addendum no. 9 for August 2022;
(iii) any other amounts representing civil fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;
4. To rule the obligation of the to pay the court costs.
Deadline: 26.04.2023
Other aspects on the company’s tangible assets
State of the lands not included in the share capital
Currently, all the lands owned by CONPET S.A. are registered in the Integrated Cadastre System and the Land Registry.
On 31 decembrie 2022, Conpet has registered assets of the company lands in surface of 733,637.02 square meters with a fair amount of 22,858,900 RON, held based on Land Ownership Certificates and sale-purchase contracts.
The company has augmented the share capital with some part of the lands held based on the land ownership certificates (Ro. C.A.D.P.), not being included in the share capital lands with a surface of 554,537.62 Sq.m, being comprised in 48 CADP. The land ownership certificates for these lands have been obtained during 2001-2005 and the value assessed at the date of acquiring the certificates, set out in compliance with GD no.834/1991 is of 26,708,233 RON. These lands have been recorded in the company’s patrimony at the expense of equity. The fair value of these lands on 31.12.2020, according to the report prepared by an ANEVAR authorized appraiser, amounts to 12,562,749.57 RON.
The Board of Directors has undertaken all steps in view of augmentation of the share capital by the value of land held based on the land ownership certificates.
Thus, based on the land appraisal reports, in compliance with the provisions of Art. 6 Para (3) of GD no.834/1991 subsequent amendments and completions, drafted by expert valuer, the Board of Directors has summoned the Extraordinary General Meeting of Shareholders, on 19.05.2016, in first call, namely 20.05.2016, in second call. At both EGMS meetings the quorum has not been met.
Although there have been convened two general meetings of shareholders, the Board of Directors has summoned a new EGMS for 05.07.2016, with the same Agenda. Following the cast vote by the shareholders present and represented, the proposal to augment the share capital has not been approved, due to the lack of necessary quorum for approval votes.
Subsequently, there have been undertaken all necessary steps for the augmentation of the share capital, and on 26.03.2019, the EGMS has approved the initiation of the procedure for the augmentation of the share capital and the appointment by the Trade Register Office Prahova of an authorized appraiser to assess the lands brought as contribution to the share capital.
Based on the new appraisal report has been convened the EGMS, on 04.07.2019 in first call and 05.07.2019 in second call, with the Agenda - Approval of the augmentation of the share capital by the maximum value of 101,763,954.60 RON, representing contribution in kind (lands) in amount of 59,751,935.10 RON and cash amounting to maximum 42,012,019.50 RON, from the current value of 28,569,842.40 RON at the value of maximum 130,333,797 RON, by issuing a number of maximum 30,837,562 new shares, nominative, dematerialized, at a price of 3.3 RON/share, equal to the nominal value, without share premium.
In both EGMS meetings has not been met the attendance quorum provided by the law, needed for the augmentation of the share capital with contribution in kind.
On 24.09.2020, the EGMS issued Resolution no. 1, by which it approved the initiation of the operation to augment the share capital by the value of the lands held based on the 48 ownership certificates and the initiation of formalities to the N.R.C. with a view to appoint an authorized assessor for the valuation of the lands.
In order to comply with the EGMS Resolution, between September and December 2020, three requests were made to the Prahova Trade Register Office for the appointment of an assessor to draw up the land evaluation report in accordance with art. 6, para. 3 of GD no. 834/1991.
In March 2021, by Resolution no. 1 dated 10.03.2021 and Resolution no. 2 dated 11.03.2021, the EGMS did not approve the augmentation of the share capital by the value of the lands not included, as during the two meetings the attendance quorum provided by law (85%) was not met.
On 28.04.2022, the EGMS issued Resolution no.1, by which it approved the initiation of the operation to augment the share capital by the value of the lands held based on the 48 ownership certificates and the initiation of formalities to Prahova Trade Register Office in order to appoint an authorized appraiser for land valuation.
In May 2022, two requests were made to Prahova Trade Register Office, for the appointment of an appraiser to draw up the land appraisal report, in accordance with art. 6, para. 3 of GD no. 834/1991.
Based on the appraisal report, prepared by the appraiser appointed by Prahova Trade Register Office, NIȚU CORNEL, A.N.E.V.A.R. Member, with ID no. 14579, the EGMS convened in the meeting dated 20.09.2022, respectively the meeting dated 21.09.2022 did not debate on the proposal to increase the share capital with the value of the not included pieces of land, as the attendance quorum required by law was not met for the two meetings (85 %).
To date, the share capital has not been increased by the value of the not included land plots.
Status of the Real Estate Registration of lands and buildings belonging to CONPET
Land Tabulation Situation
By the reporting date there were completed and registered in the integrated cadastre and land register all land owned, namely the total area of 733,601 sqm.
The company has unused land areas, vacant since the abolition of some work sites. These land plots have a total area of 14,237.5 sqm and are related to the decommissioned work sites Frasin - Suceava county (1,241 sqm), Frunzeasca - Galați county (9,594.5 sqm), Rich gas loading ramp Comănesti - Bacău county (2,714 sqm) and Constanța Sud 1 – Constanța county (688 sqm).
Report on the Buildings Registration
Out of the total of 190 constructions subject to tabulation, 178 were tabulated, for the remaining 12 non-tabulated constructions steps are being taken to solve the problems that led to the impossibility of tabulating them.
The financial information presented in this report are taken from financial statements for the period ended December 31, 2022, prepared in accordance with Order of the Minister of public Finances no. 2844/2016, audited.
2022 | 2021 | 2020 | Variation% | ||
2022/2021 | 2021/2020 | ||||
ASSETS |
|
|
|
|
|
Intangible assets |
|
|
|
|
|
Tangible assets | 607,025 | 512,823 | 504,534 | ▲ 18.4% | ▲ 1.6% |
Intangible assets | 6,855 | 6,942 | 4,313 | ▼ 1.3% | ▲ 61.0% |
Financial Assets | 2,537 | 411 | 1,112 | ▲517.3% | ▼ 63.0% |
Deferred corporate tax receivables | 6,153 | 4,637 | 4,956 | ▲ 32.7% | ▼ 6.4% |
Total non-current assets | 622,570 | 524,813 | 514,915 | ▲ 18.6% | ▲ 1.9% |
Current assets |
|
|
|
|
|
Inventories | 6,867 | 5,312 | 5,912 | ▲ 29.3% | ▼ 10.1% |
Trade receivables and other receivables | 49,187 | 48,922 | 40,260 | ▲ 0.5% | ▲ 21.5% |
Cash and cash equivalents | 127,673 | 191,751 | 198,257 | ▼ 33.4% | ▼ 3.3% |
Prepaid expenses | 1,252 | 624 | 603 | ▲100.6% | ▲ 3.5% |
Total current assets | 184,979 | 246,609 | 245,032 | ▼ 25.0% | ▲0.6% |
TOTAL ASSETS | 807,549 | 771,422 | 759,947 | ▲4.7% | ▲1.5% |
EQUITY AND LIABILITIES |
|
|
|
|
|
Equities |
|
|
|
|
|
Subscribed and paid-up share capital | 28,570 | 28,570 | 28,570 | - | - |
Legal reserves | 5,714 | 5,714 | 5,714 | - | - |
Revaluation reserves | 17,101 | 18,360 | 20,932 | ▼ 6.9% | ▼12.3% |
Other reserves | 533,898 | 517,047 | 500,269 | ▲ 3.3% | ▲ 3.4% |
Retained Earnings | 37,149 | 46,289 | 40,679 | ▼ 19.8% | ▲ 13.8% |
Result of the year | 61,664 | 51,929 | 60,847 | ▲ 18.8% | ▼ 14.7% |
Total equity | 684,096 | 667,909 | 657,011 | ▲ 2.4% | ▲ 1.7% |
Long-term trade liabilities | - | 1,288 | - | - | - |
Long-term trade liabilities to employees | 23,069 | 16,629 | 19,864 | ▲ 38.7% | ▼16.3% |
Other long-term liabilities | 2,749 | 3,458 | 3,470 | ▼ 20.5% | ▼ 0.3% |
Total long-term liabilities | 25,818 | 21,375 | 23,334 | ▲ 20.8% | ▼8.4% |
Current liabilities |
|
|
|
|
|
Trade liabilities | 43,915 | 32,148 | 23,584 | ▲ 36.6% | ▲ 36.3% |
Current Corporate Tax | 1,997 | 2,049 | 738 | ▼ 2.5% | ▲177.6% |
Other liabilities | 27,569 | 27,106 | 29,893 | ▲ 1.7% | ▼ 9.3% |
Short-term liabilities | 14,364 | 12,066 | 14,128 | ▲ 19.0% | ▼ 14.6% |
Short-term provisions | 9,790 | 8,769 | 11,259 | ▲ 11.6% | ▼ 22.1% |
Total current liabilities | 97,635 | 82,138 | 79,602 | ▲ 18.9% | ▲ 3.2% |
TOTAL LIABILITIES | 123,453 | 103,513 | 102,936 | ▲ 19.3% | ▲ 0.6% |
TOTAL EQUITIES AND LIABILITIES | 807,549 | 771,422 | 759,947 | ▲4.7% | ▲1.5% |
Table 17-Company’s Statement of the financial standing during 2020-2022
The total assets of the company register 4.7% increase (36,127 thousand RON) compared to December 31, 2021, mainly due to the increase in fixed assets.
The intangible assets recorded an increase by 18.6% as compared to December 31, 2021, mainly generated by the input of fixed assets by acquisition in a value higher than the amortization registered in 2022.
The fixed assets inputs are investments made for the development and modernization of the National Transport System and for ensuring the realization of safely transport operations.
The current assets decreased by 25.0% (61,630 thousand RON), from 246,609 thousand RON on 31.12.2021 to 184,979 thousand RON on 31.12.2022, due to the decrease in cash.
On 31.12.2022 the cash and cash equivalents lower by 33.4% (64,078 thousand RON) from 191,751 thousand RON to 127,673 thousand RON. The cash from the modernization quota existing in bank accounts on 31.12.2022 was 48,584 thousand RON, 75,526 thousand RON lower than on 31.12.2021 (124,110 thousand Ron). The cash representing the modernization quota has a special use regime, provided by GD no. 168/1998, this being destined exclusively to the financing of the modernization works and development works related to the goods belonging to the public domain.
The equities recorded an increase by 2.4% (16,187 thousand RON) as compared to December 31, 2021, reaching 684,096 thousand RON, fact mainly triggered by the increase of the modernization quota reserves.
The total liabilities increased by 19,940 thousand RON on December 31, 2022, as compared to the value on December 31, 2021 due to the increase in current debts.
The long-term liabilities record an increase of 4,443 thousand RON, as compared to December 31, 2021, due to the augmentation of the long-term liabilities to the employees.
The current liabilities, in amount of 97,635 thousand RON, increased by 15,497 thousand RON as compared to December 31, 2021, mainly due to higher trade liabilities.
Trade Liabilities and Other Liabilities
On December 31, 2022 and December 31, 2021, the trade liabilities and other liabilities look as follows:
|
|
|
| ||
Liabilities (thousand RON)
| December 31, 2021 | December 31, 2022 | Maturity date for the balance on December 31, 2022 | ||
Under 1 year | 1-5 years | Over 5 years | |||
Trade liabilities | 33,435 | 43,915 | 43,915 | - | - |
Liabilities to the employees | 28,695 | 37,433 | 14,364 | 3,440 | 19,629 |
Other liabilities, here-included fiscal debts and social insurances related debts | 32,614 | 32,315 | 29,566 | 1,848 | 901 |
Total | 94,744 | 113,663 | 87,845 | 5,288 | 20,530 |
Table 18 - Status of the trade liabilities and other liabilities on December 31, 2022
On 31.03.2022, the company Conpet S.A. did not register outstanding payments.
The trade liabilities related to the purchases of goods and services intended for operating activities have a weight of 52.6% in total commercial debts, and those representing purchases of assets have a weight of 47.4%.
The liabilities to the employees, in balance on the date of 31.12.2022, also include the future liabilities for the benefits granted to employees upon retirement or death, for the employees share of profit, for the untaken leaves and personnel layoffs, these debts being recognized as provisions.
The statement of the employee-related debts, fiscal debts and other maturity date debts look as follows:
|
|
|
| ||
Liabilities (thousand RON) | December 31, 2021 | December 31, 2022 | Maturity date for the balance on December 31, 2022 | ||
Under 1 year | Over 1 year | Over 5 years | |||
Salaries contributions | 5,280 | 6,373 | 6,373 | - | - |
Current corporate tax | 2,049 | 1,997 | 1,997 | - | - |
Royalty due to the State Budget | 7,561 | 9,371 | 9,371 | - | - |
VAT payable | 4,504 | 2,688 | 2,688 | - | - |
Other taxes and debts - State Budget | 966 | 1,202 | 1,202 | - | - |
Payable Dividends | 6,812 | 5,234 | 5,234 | - | - |
Leasing related liabilities | 4,399 | 4,458 | 2,405 | 1,517 | 536 |
Prepaid revenues | 859 | 833 | 145 | 323 | 365 |
Other liabilities | 184 | 158 | 150 | 8 | - |
Total | 32,614 | 32,314 | 29,565 | 1,848 | 901 |
Table 19 - Status of the personal liabilities, fiscal debts and other liabilities on December 31, 2022
On 31.12.2022, the leasing-related liabilities include future payment obligations related to the leasing concluded for 30 vehicles necessary for the performance of the company’s specific activity and debts related to the rights of use recognized for the contracts of lease and concession of various lands, buildings and tank cars.
The liabilities related to the rights of use recognized for the lease and concession contracts of some land plots, buildings and tank cars have been assessed at the value of the rent/royalties along the remaining contractual period, discounted with the borrowing rate for real estate loans.
The statement of the liabilities to the employees, by maturity terms reveals the following:
Liabilities | December 31, 2021 | December 31, 2022 | Maturity date for the balance on December 31, 2022 | ||
Under 1 year | Over 1 year | Over 5 years | |||
Salaries and assimilated debts | 5,873 | 6,976 | 6,976 | - | - |
Liabilities for benefits granted on retirement | 16,835 | 19,779 | 595 | 3,260 | 15,924 |
Liabilities for the benefits granted in case of death | - | 3,891 | 6 | 180 | 3,705 |
Debts for the employees share of profit | 5,643 | 6,387 | 6,387 | - | - |
Debts for untaken leaves | 344 | 360 | 360 | - | - |
Debts for other benefits due to the employees | - | 40 | 40 | - | - |
Total | 28,695 | 37,433 | 14,364 | 3,440 | 19,629 |
Table 20 Statement of the liabilities to the employees on December 31, 2022
On December 31, 2022, the Company mainly comprises at this chapter the salaries and assimilated debts, as well as future debts for benefits granted upon retirement or death and for the employees share of profit, recognized as provisions.
The evolution of the main financial indicators of the profit and loss account and of other global result elements, during 2020-2022, is presented below:
Indicator (thousand RON) | 2022 | 2021 | 2020 | Variation% | |
2022/2021 | 2021/2020 | ||||
Revenues from contracts | 472,233 | 412,787 | 406,928 | ▲ 14.4% | ▲ 1.4% |
Other revenues | 44,425 | 40,684 | 40,708 | ▲ 9.2% | ▼ 0.1% |
Earnings from disposal of assets | 5,402 | 4,915 | 0 | ▲ 9.9% | - |
Total operating revenues | 522,060 | 458,386 | 447,636 | ▲ 13.9% | ▲ 2.4% |
Expenditure on inventories | 6,934 | 5,448 | 6,106 | ▲ 27.3% | ▼10.8% |
Expenses with energy and water | 33,739 | 16,553 | 12,465 | ▲103.8% | ▲32.8% |
Personnel expenses | 180,923 | 168,219 | 162,559 | ▲ 7.6% | ▲ 3.5% |
Value adjustments of fixed assets, less adjustments related to rights of use resulted from lease contracts | 53,075 | 51,939 | 47,385 | ▲ 2.2% | ▲ 9.6% |
Value adjustments on rights of use resulted from leasing contracts | 1,987 | 1,673 | 1,926 | ▲ 18.8% | ▼13.1% |
Value adjustments on current assets | (767) | 278 | (347) | - | - |
Expenses related to external services | 114,242 | 109,776 | 107,482 | ▲ 4.1% | ▲ 2.1% |
Loss from disposal of assets | - | - | 41 | - | - |
Provision adjustments | 6,753 | (4,144) | (2,802) | - | - |
Other expenses | 62,405 | 50,907 | 47,805 | ▲ 22.6% | ▲ 6.5% |
Total Operating Expenses | 459,291 | 400,649 | 382,620 | ▲ 14.6% | ▲ 4.7% |
Operating Profit | 62,769 | 57,737 | 65,016 | ▲ 8.7% | ▼11.2% |
Financial Revenues | 9,839 | 3,428 | 6,123 | ▲187.1% | ▼44.0% |
Financial Expenses | 469 | 330 | 686 | ▲ 42.1% | ▼51.9% |
Financial profit | 9,370 | 3,098 | 5,437 | ▲202.5% | ▼43.0% |
Profit before corporate tax | 72,139 | 60,835 | 70,453 | ▲ 18.6% | ▼13.7% |
Expenses with current income tax | 11,686 | 9,155 | 9,177 | ▲ 27.6% | ▼ 0.2% |
Expenses with (revenues coming from) deferred corporate tax | (1,211) | (249) | 429 | - | - |
Profit of the year | 61,664 | 51,929 | 60,847 | ▲ 18.8% | ▼14.7% |
Other global result elements which will not be reclassified later on in profit or loss | (1,599) | 3,383 | 216 | - | - |
Net increase of the modernization quota reserve | 17,409 | 9,811 | 3,193 | ▲ 77.4% | ▲ 207.3% |
Total other global result elements that will not be subsequently reclassified as profit or loss | 17,409 | 9,811 | 3,193 | ▲ 77.4% | ▲ 207.3% |
Total other global result elements | 15,810 | 13,194 | 3,409 | ▲ 19.8% | ▲ 287.0% |
Total global result | 77,474 | 65,123 | 64,256 | ▲19.0% | ▲1.3% |
Earnings per share | 7.12 | 6.00 | 7.03 | ▲18.7% | ▼14.7% |
Table 21 - Global result statement during 2020-2022
The synthesis of the financial results, in evolution 2020-2022, is as follows:
Chart 18 - Synthesis of the financial results during 2020-2022 (mRON)
Operating Revenues
As compared to the approved budget and the previous period (2021-2020), the total revenues of the operating activity and the transported volume in 2022 are as follows:
2022 | Variation (%) Achieved/Budget 2022 | Indicators | 2022 | 2021 | 2020 | Variation% | ||
Achieved | Budget | 2022/2021 | 2021/ 2020 | |||||
| Revenues from transport services Domestic Subsystem |
| ||||||
3,062 | 3,067 | ▼ 0.2% | thousand tons | 3,062 | 3,241 | 3,401 | ▼ 5.5% | ▼ 4.7% |
324,770 | 325,250 | ▼ 0.1% | thousand RON | 324,770 | 296,280 | 299,928 | ▲ 9.6% | ▼ 1.2% |
| Revenues from transport services Import Subsystem |
| ||||||
4,038 | 4,039 | - | thousand tons | 4,038 | 3,410 | 3,284 | ▲ 18.4% | ▲ 3.8% |
145,087 | 144,058 | ▲ 0.7% | thousand RON | 145,087 | 114,197 | 102,857 | ▲ 27.0% | ▲ 11.0% |
| Total revenues from transport services |
| ||||||
7,100 | 7,106 | ▼ 0.1% | thousand tons | 7,100 | 6,651 | 6,685 | ▲ 6.8% | ▼ 0.5% |
469,857 | 469,308 | ▲ 0.1% | thousand RON | 469,857 | 410,477 | 402,785 | ▲ 14.5% | ▲ 1.9% |
1,966 | 1,789 | ▲ 9.9% | Revenues from rents | 1,966 | 1,633 | 1,633 | ▲ 20.4% | - |
410 | 450 | ▼ 8.9% | Other revenues | 410 | 677 | 2,510 | ▼ 39.4% | ▼ 73.0% |
472,233 | 471,547 | ▲ 0.2% | Turnover | 472,233 | 412,787 | 406,928 | ▲ 14.4% | ▲ 1.4% |
39,912 | 41,338 | ▼ 3.5% | Write-back to revenues of reserve constituted based on the expenses with the modernization quota | 39,912 | 37,680 | 33,788 | ▲ 5.9% | ▲ 11.5% |
5,402 | 5,697 | ▼ 5.2% | Earnings from disposal of assets | 5,402 | 4,915 | 0 | ▲ 9.9% | - |
4,513 | 2,496 | ▲80.8% | Other revenues | 4,513 | 3,004 | 6,920 | ▲ 50.2% | ▼ 56.6% |
49,827 | 49,531 | ▲ 0.6% | Other operating revenues | 49,827 | 45,599 | 40,708 | ▲ 9.3% | ▲ 12.0% |
522,060 | 521,078 | ▲ 0.2% | Total operating revenues | 522,060 | 458,386 | 447,636 | ▲ 13.9% | ▲ 2.4% |
Table 22 - Operating income statement year 2022 compared to the Budget and as compared to the period 2020-2021
The revenues achieved from the transport on subsystems in 2022, compared to the budget and the year 2021, are as follows:
Chart 19 - The evolution of the revenues achieved from the transport on the sub-systems
2022 vs Budget 2022 and achieved 2021
The operating revenues recorded an increase by 0.2% as compared to Budget. As compared to 2021 the increase in the operating revenues was of 13.9% (63,674 thousand Ron).
The transport revenues hold a share of 99.5% in turnover, the difference of 2,376 thousand RON (0.5%) representing revenues from various activities such as: leases of lands and telecommunication equipment, rail shunting.
Other operating income mainly includes the income from the transfer of the reserve representing the modernization quota related to the depreciation of fixed assets financed from this share recorded in expenditure in 2022. The revenues representing the modernization quota have registered an increase by 5.9% in 2022 as compared to the same period of the year 2021.
Operating Expenses
The operating expenses made in 2022, as compared to the last 2 years and the budget provisions, are as follows:
Budget 2022 | Variation% Achieved/ Budget 2022 | Indicators (thousand RON) | 2022 | 2021 | 2020 | Variation% | ||
2022/2021 | 2021/2020 | |||||||
6,934 | 7,477 | ▼ 7.3% | Material expenses, out of which: | 6,934 | 5,448 | 6,106 | ▲ 27.3% | ▼ 10.8% |
3,629 | 3,902 | ▼ 7.0% | - expenses with consumables | 3,629 | 2,981 | 3,244 | ▲ 21.7% | ▼ 8.1% |
2,253 | 2,304 | ▼ 2.2% | - fuel expenses | 2,253 | 1,569 | 1,427 | ▲ 43.6% | ▲ 10.0% |
33,739 | 42,475 | ▼20.6% | Other external expenses (with energy and water) | 33,739 | 16,553 | 12,465 | ▲103.8% | ▲32.8% |
180,923 | 181,352 | ▼ 0.2% | Personnel expenses, out of which: | 180,923 | 168,219 | 162,559 | ▲ 7.6% | ▲3.5% |
143,346 | 143,407 | ▼ 0.1% | - salaries expenses | 143,346 | 133,956 | 130,064 | ▲ 7.1% | ▲3.0% |
4,060 | 4,075 | ▼ 0.4% | - expenses related to insurances, social protection and other legal obligations | 4,060 | 3,755 | 4,323 | ▲ 8.1% | ▼13.1% |
33,517 | 33,870 | ▼ 1.0% | - other personnel expenses | 33,517 | 30,508 | 28,172 | ▲ 9.9% | ▲8.3% |
53,075 | 55,449 | ▼ 4.3% | Value adjustments of fixed assets, less adjustments related to rights of use resulted from lease contracts | 53,075 | 51,939 | 47,385 | ▲2.2% | ▲9.6% |
1,987 | 2,043 | ▼2.7% | Value adjustments on rights of use resulted from leasing contracts | 1,986 | 1,673 | 1,926 | ▲18.8% | ▼13.1% |
114,242 | 118,265 | ▼3.4% | Expenses with external services, out of which: | 114,242 | 109,776 | 107,482 | ▲ 4.1% | ▲2.1% |
2,789 | 3,465 | ▼19.5% | - maintenance (maintenance, current repairs ) | 2,789 | 2,317 | 1,985 | ▲20.4% | ▲16.7% |
61,430 | 63,194 | ▼ 2.8% | - expenses with crude oil transport by railway | 61,430 | 63,202 | 63,567 | ▼ 2.8% | ▼ 0.6% |
1,939 | 2,213 | ▼12.4% | - expenses with decontamination works | 1,939 | 1,474 | 805 | ▲ 31.5% | ▲ 83.1% |
36,511 | 36,263 | ▲ 0.7% | - oil royalty | 36,511 | 31,527 | 30,903 | ▲ 15.8% | ▲ 2.0% |
11,573 | 13,130 | ▼11.9% | - other services performed by third parties | 11,573 | 11,256 | 10,222 | ▲ 2.8% | ▲10.1% |
(767) | (255) | - | Value adjustments on the current assets | (767) | 278 | (347) | - | - |
6,753 | 3,095 | ▲118.2% | Provision adjustments | 6,753 | (4,144) | (2,802) | - | - |
- | - | - | Loss from disposal of assets | - | - | 41 | - | - |
62,405 | 62,322 | ▲ 0.1% | Other operating expenses, out of which: | 62,405 | 50,907 | 47,805 | ▲ 22.6% | ▲ 6.5% |
57,321 | 57,191 | ▲ 0.2% | - modernization quota expenses | 57,321 | 47,490 | 36,981 | ▲ 20.7% | ▲28.4% |
459,291 | 472,223 | ▼ 2.7% | Total operating expenses | 459,291 | 400,649 | 382,620 | ▲ 14.6% | ▲ 4.7% |
Table 23 - Operating income statement year 2022 compared to the Budget and compared to the period between 2020-2022
The operation expenses achieved in 2022 increased by 14.6% as compared to 2021, from 400,649 thousand RON to 459,291 thousand RON. The increase in the operating expenses was mainly determined by the increase of the expenses with electricity and gas, personnel expenses, modernization quota and the decontamination works.
As compared to the approved budget, in 2022 were registered savings for the following types of expenses: electricity and gas (8,736 thousand Ron), expenses with other services performed by third parties (1,558 thousand Ron), maintenance expenses (675 thousand Ron), material expenses (543 thousand Ron), personnel expenses (429 thousand Ron).
Statement of the personnel expenses achieved in 2020 - 2022, is as follows:
Indicators (thousand RON) | 2022 | 2021 | 2020 | |
Total personnel expenses, out of which: | 180,923 | 168,219 | 162,559 | |
a) | Salary expenses*) | 143,346 | 133,956 | 130,064 |
b) | Bonusses awarded as per the CLA*) | 21,171 | 20,495 | 19,242 |
c). | Expenditure on severance payments related to personnel layoffs | 3,912 | 1,798 | 963 |
d) | Expenses related to the mandate contracts of the Board of Directors and the Directors with a mandate contract | 4,848 | 4,892 | 4,759 |
e) | Expenses labor insured contribution | 3,585 | 3,322 | 3,208 |
f) | Company's contribution to voluntary pension schemes | 2,872 | 2,259 | 2,896 |
g) | Company’s contribution to voluntary health insurance premiums | 1,189 | 1,497 | 1,427 |
Table 24 Statement of personnel expenses in 2020 -2022
*) The detailed statement of these expenses is presented in Note 17 to the Financial Statements concluded on December 31, 2022.
The operating profit achieved in 2022, of 62,769 thousand Ron increased by 28.5% (13,914 thousand Ron), as compared to the budget provisions. The increase was mainly generated by the capping of electricity and natural gas prices, the thresholds being much lower than the market prices existing at the time of the budget. As compared to the previous year, the profit increased by 8.7%.
Financial Result
Indicator (thousand RON) | 2022 | 2021 | 2020 | Variation% | |
2022/2021 | 2021/2020 | ||||
Revenues from interests | 9,737 | 3,402 | 6,097 | ▲186.2% | ▼ 44.2% |
Other financial revenues | 102 | 26 | 26 | ▲ 292.3% | - |
Total financial revenues | 9,839 | 3,428 | 6,123 | ▲ 187.1% | ▼ 44.0% |
Total financial expenses | 469 | 330 | 686 | ▲ 42.1% | ▼ 51.9% |
Financial Result | 9,370 | 3,098 | 5,437 | ▲ 202.5% | ▼ 43.0% |
Table 25 - Financial result during 2020-2022
The financial revenues are higher by 187,1% in 2022, compared to the same period of the previous year, due to interest rates offered by banks for deposits.
The financial expenses increased by 139 thousand Ron in 2022 YoY, mainly due to the increase by 16.8% (34 thousand Ron) of the expenses of interests related to leasing contracts.
Based on this evolution, the financial result increased by 202.5% in 2022, as compared to 2021 (from 3,098 thousand Ron to 9,370 thousand Ron).
The company ended in 2022 with a net profit amounting to 61,664 thousand RON, 29.3% over the budgeted level, and as compared to 2021 level, records an increase by 18.8%.
Name of the indicators | Calculation formula | 2022 | 2021 | 2020 | Variation | ||||
2022/2021 | 2021/2020 | ||||||||
PROFITABILITY INDICATORS | |||||||||
Gross sales margin | EBIT (operating profit) | 13.3% | 14.0% | 16.0% | ▼0.7 p.p. | ▼2.0 p.p. | |||
Turnover | |||||||||
Operating profit margin | EBIT (operating profit) | 12.0% | 12.6% | 14.5% | ▼0.6 p.p. | ▼1.9 p.p. | |||
Operating Revenues | |||||||||
EBITDA in total sales | EBITDA | 24.5% | 26.6% | 27.6% | ▼2.1 p.p. | ▼1.0 p.p. | |||
Turnover | |||||||||
EBITDA adjusted in total sales | Adjusted EBITDA | 28.2% | 28.9% | 28.4% | ▼0.7 p.p. | ▲0.5 p.p. | |||
Turnover | |||||||||
EBITDA in equity | EBITDA | 16.9% | 16.4% | 17.1% | ▲0.5 p.p. | ▼0.7 p.p. | |||
Total Equities | |||||||||
EBIDTA adjusted in equity | Adjusted EBITDA | 19.5% | 17.9% | 17.6% | ▲1.6 p.p. | ▲0.3 p.p. | |||
Total Equities | |||||||||
Gross Profit Rate | Gross result | 15.3% | 14.7% | 17.3% | ▲0.6 p.p. | ▼2.6 p.p. | |||
Turnover | |||||||||
Liquidity Indicators | |||||||||
Current liquidity indicator (times) | Current assets | 1.9 | 3.0 | 3.1 | ▼36.7% | ▼ 3.2% | |||
Current liabilities | |||||||||
The quick ratio indicator (acid test) | Current assets - Inventories | 1.8 | 2.9 | 3.0 | ▼ 37.9% | ▼ 3.3% | |||
Current liabilities | |||||||||
Profitability indicators | |||||||||
Return on Assets (ROA) | Net result | 7.6% | 6.7% | 8.0% | ▲0.9 p.p. | ▼1.3 p.p. | |||
TOTAL ASSETS | |||||||||
Return on Equity (ROE) | Net result | 9.0% | 7.8% | 9.3% | ▲1.2 p.p. | ▼1.5 p.p. | |||
Total Equities | |||||||||
Return on Sales (ROS) | Net result | 13.1% | 12.6% | 15.0% | ▲0.5 p.p. | ▼2.4 p.p. | |||
Turnover | |||||||||
Inventories turnover speed (days) | Medium inventory X360 | 316.0 | 370.7 | 416.6 | ▼ 14.8% | ▼ 11.0% | |||
Sales costs | |||||||||
Duration of inventory turnover (times) | Sales costs | 1.1 | 1.0 | 0.9 | ▲ 10.0% | ▲ 11.1% | |||
Average stock | |||||||||
Rotation speed of the clients debits (days) | Average stock clients X360 | 29 | 28 | 28 | ▲ 3.6% | - | |||
Turnover | |||||||||
Rotation duration of the clients debits (times) | Turnover | 12.6 | 13.1 | 13.0 | ▼ 3.8% | ▲ 0.7% | |||
Average stock clients | |||||||||
Average stock suppliersX360 | 26 | 26 | 28 | - | ▼ 7.1% | ||||
Procurement from suppliers of goods and services | |||||||||
Rotation duration of the suppliers credits (times) | Procurement from suppliers of goods and services | 13.6 | 13.7 | 13.0 | ▼ 0.7% | ▲ 5.4% | |||
Average balance suppliers | |||||||||
RISK INDICATORS | |||||||||
Leverage degree indicator | Borrowed capital |
|
|
| ▼0.3 p.p. | ▼0.1 p.p. | |||
Total equities | |||||||||
Table 26– Economic-Financial indicators during 2020-2022
The Revenues and Expenditure Budget for the year 2022 has been approved by the OGMS in the meeting dated February 25, 2022, as per the provisions of the Government Ordinance no. 26/2013.
During 2022, the Revenues and Expenditure Budget has been amended on several occasions in compliance with the legal provisions contained in:
- | GO no.26/2013 regarding the reinforcement of the financial discipline at the level of economic operators to which the State or the administrative - territorial divisions act as unique or majority shareholders or hold directly or indirectly a majority participation, subsequent amendments and additions; |
- | Law no.317 from December 28, 2021 of the State budget for the year 2022, Art.48; |
- | Order of the Ministry of Public Finance no. 3818/2019 for the approval of the format and structure of the revenues and expenditure budget, as well as the substantiation annexes thereof; |
According to Article 10 paragraph (2) of Government Ordinance no. 26/2013, with subsequent amendments and completions, the approval of the revision of the revenues and expenditure budget falls within the competence of the Board of Directors if the level of indicators referred to in Article 10 paragraph (2) worsens (reduction of gross profit/increase of loss and/or dividends due to the state or local budget; reduction of labor productivity; increase of total expenses to 1,000 Ron total income; exceeding the level of outstanding payments). If the revision includes changes in the indicators in the above-mentioned purpose, then the approval falls within the competence of the General Meeting of Shareholders.
In 2022, the GMS approved a revision of the Budget on 28.10.2022, and the Board of Directors approved 5 budgetary revisions, on 18.04.2022, 29.06.2022, 12.08.2022, 28.10.2022 and on 13.12.2022.
The implementation of the amended Revenues and Expenditure Budget for 2022 is presented in the format and structure of the O.M.P.F. no. 3818/2019 on the approval of the format and structure of the Revenues and Expenditure budget, as well as of the substantiation annexes thereof, (Annex no.1).
Crt. no. | Indicators (thousand RON) | Raw no. | BUDGET AN 2022 | Achievements Year 2022 | % 6= 5/4 | |||
1 | 2 | 3 | 4 | 5 | 6 | |||
I. |
|
| TOTAL REVENUES (Row1=Row2+Row5) | 1 | 528,688 | 531,899 | 100.6% | |
| 1 |
| Total operating revenues, of which: | 2 | 521,078 | 522,060 | 100.2% | |
|
| a) | subsidies, as per the legal provisions in force | 3 | 0 | 0 |
| |
|
| b). | transfers, as per the legal provisions in force | 4 | 0 | 0 |
| |
2 |
| Financial Revenues | 5 | 7,610 | 9,839 | 129.3% | ||
II |
|
| TOTAL EXPENSES (Row 6=Row 7+Row 19) | 6 | 472,688 | 459,760 | 97.3% | |
| 1 |
| Operating Expenses, (Row 7=Row 8+Row9+Row10+Row18), o/w: | 7 | 472,223 | 459,291 | 97.3% | |
| A. | goods and services expenses | 8 | 132,754 | 119,177 | 89.8% | ||
B. | taxes, fees and similar levies related expenses | 9 | 38,801 | 39,020 | 100.6% | |||
C. | personnel expenses (Rows 10=Row11+Row14+Row16+Row17), out of which: | 10 | 181,352 | 180,923 | 99.8% | |||
| C0 | Salary - related expenses (Rows 11=Row12+Row13) | 11 | 164,596 | 164,517 | 99.9% | ||
| C1 | salary expenses | 12 | 143,407 | 143,346 | 99.9% | ||
| C2 | bonuses | 13 | 21,189 | 21,171 | 99.9% | ||
| C3 | Other personnel expenses, out of which: | 14 | 4,017 | 3,912 | 97.4% | ||
|
| expenditure on severance payments relating to staff redundancies | 15 | 4,017 | 3,912 | 97.4% | ||
| C4 | Expenses related to the Contract of Mandate and other management and control bodies, committees and commissions | 16 | 4,947 | 4,848 | 98.0% | ||
| C5 | Expenses with contributions due by the employer | 17 | 7,792 | 7,646 | 98.1% | ||
D. | Other operating expenses | 18 | 119,316 | 120,171 | 100.7% | |||
2 |
| Financial Expenses | 19 | 465 | 469 | 100.9% | ||
III |
|
| GROSS RESULT (profit/loss)(Rd.20= Rd.1- Rd.6) | 20 | 56,000 | 72,139 | 128.8% | |
IV |
| 1 | CURRENT CORPORATE TAX | 21 | 8,866 | 11,664 | 131.6% | |
|
| 2 | DEFFERED CORPORATE TAX | 22 | 2,726 | 1,415 | 51.9% | |
|
| 3 | REVENUES FROM DEFFERED CORPORATE TAX | 23 | 3,298 | 2,626 | 79.6% | |
|
| 4 | TAX SPECIFIC TO CERTAIN ACTIVITIES | 24 | 22 | 22 | 98.4% | |
|
| 5 | OTHER TAXES MISSING FROM THE ABOVE ITEMS | 25 | 0 | 0 |
| |
V. |
|
| PROFIT/NET LOSS OF THE REPORTING PERIOD (Row 26=Rd.20-Rd.21-Rd.22+Rd.23-Rd.24-Rd.25), of which: | 26 | 47,684 | 61,664 | 129.3% | |
| 1 |
| Legal reserves | 27 | 0 | 0 |
| |
| 2 |
| Other reserves representing fiscal incentives provided by Law | 28 | 850 | 3,153 | 370.9% | |
| 3 |
| The coverage of accounting losses from previous years | 29 | 0 | 0 | 0 | |
| 4 |
| Establishment of own financing sources for the projects partly financed through foreign loans, as well as for the establishment of the necessary sources to reimburse capital ratio, to pay interests, commissions and other costs related to these loans | 30 | 0 | 0 |
| |
| 5 |
| Other allocations stipulated by law | 31 | 0 | 0 |
| |
| 6 |
| Accounting profit remaining after deducting the amounts from Rows 27, 28, 29, 30, 31 (Row 32=Row26-(Row27 to Row 31)>= 0) | 32 | 46,834 | 58,511 | 124.9% | |
| 7 |
| Employees share of profit within the limit of 10% of the net profit, but no more than the level of an average monthly basic salary achieved at the level of the economic operator in the reference financial year | 33 | 5,311 | 6,388 | 120.3% | |
| 8 |
| Minimum 50% transfers to the state or local budget in case of regies autonomes or dividends due to shareholders in case of the societies/national companies, entirely or majority state-owned companies, out of which: | 34 | 45,046 | 58,511 | 129.9% | |
|
| a) | - dividends payable to the state budget | 35 | 26,449 | 34,355 | 129.9% | |
|
| b). | - dividends payable to the local budget | 36 | 0 | 0 |
| |
|
| c). | - dividends payable to other shareholders | 37 | 18,597 | 24,156 | 129.9% | |
| 9 |
| The non-distributed profit on Destinations under Rows 33 - 34 is distributed to other reserves and is its own source of funding | 38 | 1,788 | 0 | 0.0% | |
VI |
|
| REVENUES FROM EUROPEAN FUNDS | 39 | 0 | 0 |
| |
VII |
|
| ELIGIBLE EXPENSES FROM EUROPEAN FUNDS, out of which: | 40 | 0 | 0 |
| |
|
| a) | material expenses | 41 | 0 | 0 |
| |
|
| b). | salaries expenses | 42 | 0 | 0 |
| |
|
| c). | expenses on the provision of services | 43 | 0 | 0 |
| |
|
| d) | advertising and publicity expenses | 44 | 0 | 0 |
| |
|
| e). | Other expenses | 45 | 0 | 0 |
| |
VIII |
|
| INVESTMENT FINANCING SOURCES, out of which: | 46 | 152,000 | 148,712 | 97.8% | |
| 1 |
| Government grants | 47 | 0 | 0 |
| |
|
|
|
| budget allocations related to payments of the commitments from previous years | 48 | 0 | 0 |
|
IX |
|
| EXPENSES FOR INVESTMENTS | 49 | 152,000 | 148,712 | 97.8% | |
X |
|
| SUBSTANTIATION DATA |
|
|
|
| |
| 1 |
| Number of employees estimated at the end of the year | 50 | 1,476 | 1,463 | 99.1% | |
| 2 |
| Total Average number of employees | 51 | 1,501 | 1,467 | 97.7% | |
| 3 |
| Average monthly earnings per employee (RON/employee) determined based on payroll expenses | 52 | 8,474 | 8,666 | 102.3% | |
| 4 |
| The average monthly earnings per employee (RON/person) based on payroll expenses, recalculated as per the annual State Budget Law | 53 | 7,916 | 8,095 | 102.3% | |
| 5 |
| Labor productivity in value units per total average number of employees (kRON/employee) (Row 2/Row 51) | 54 | 347 | 356 | 102.5% | |
| 6 |
| Labor productivity in value units per total average number of personnel, recalculated as per the annual State Budget Law | 55 | 347 | 356 | 102.5% | |
| 7 |
| Labor productivity in physical units per total average number of personnel, (finished goods quantity/person) | 56 | - | - | - | |
| 8 |
| Total expenses per each 1000 RON of total revenues (Row 57=(row6/Row1)x1000) | 57 | 894 | 864 | 96.6% | |
| 9 |
| Outstanding payments | 58 | 0 | 0 |
| |
| 10 |
| Overdue receivables | 59 | 385 | 270 | 70.1% | |
Table 27- Implementation of the Revenues and Expenditure budget for the year 2022
| Elements (thousand RON) | 2022 | 2021 | 2020 | Variation | |
2022/2021 | 2021/2020 | |||||
| Cash flows from operating activities: | |||||
+ | Proceeds from services supply | 509,861 | 441,809 | 451,157 | ▲ 15.4% | ▼ 2.1% |
+ | Proceeds from interests related to banking placements | 9,872 | 3,320 | 6,572 | ▲197.4% | ▼ 49.5% |
+ | Other proceeds | 13,518 | 15,675 | 4,902 | ▼ 13.8% | ▲219.8% |
- | Payments to the suppliers of goods and services | 140,569 | 121,740 | 117,925 | ▲ 15.5% | ▲ 3.2% |
- | Payments to and on behalf of the employees | 176,585 | 166,735 | 160,130 | ▲ 5.9% | ▲ 4.1% |
- | VAT payments | 42,222 | 51,158 | 43,943 | ▼ 17.5% | ▲ 16.4% |
- | Expenses with corporate tax and specific tax | 11,738 | 7,869 | 11,515 | ▲ 49.2% | ▼ 31.7% |
- | Other payments regarding the operating activities | 45,623 | 43,857 | 41,803 | ▲ 4.0% | ▲ 4.9% |
A | Net cash from operating activity | 116,514 | 69,445 | 87,315 | ▲ 67.8% | ▼ 20.5% |
| Cash flows from investment activities: | |||||
+ | Proceeds from sale of tangible assets | 303 | 302 | 63 | ▲ 0.3% | ▲ 379.4% |
+ | Proceeds from modernization quota | 57,321 | 47,490 | 36,981 | ▲ 20.7% | ▲ 28.4% |
- | Payments for purchase of tangible assets | 172,138 | 63,416 | 102,602 | ▲171.4% | ▼38.2% |
B | Net cash from investment activity | (114,514) | (15,624) | (65,558) |
|
|
| Cash-flows from financing activities | |||||
- | Paid dividends | 62,865 | 57,690 | 59,118 | ▲ 9.0% | ▼ 2.4% |
- | Payments on the account on the debt related to the leasing | 3,015 | 2,430 | 2,765 | ▲ 24.1% | ▼ 12.1% |
- | Interest payments | 199 | 207 | 194 | ▼ 3.9% | ▲ 6.7% |
C | Net cash from financing activities | (66,079) | (60,327) | (62,077) | - | - |
| Net increase of the cash and cash equivalents =A+B+C=D2-D1 | (64,079) | (6,506) | (40,320) | - | - |
D1
| Cash and cash equivalents at the beginning of the period | 191,751 | 198,257 | 238,577 | ▼ 3.3% | ▼ 16.9% |
D2
| Cash and cash equivalents at the end of the period | 127,672 | 191,751 | 198,257 | ▼ 33.4% | ▼ 3.3% |
Table 28 - Cash flow statement for 2020-2022
Cash and cash equivalents on 31.12.2022 decreased by 33.4% as compared to December 31, 2021 (127,672 thousand Ron compared to 191,751 thousand Ron) due to payments of fixed assets (investments) and dividends, higher than the surplus of cash obtained from the operating activity and cash inflows from the investment activity (cash representing the modernization quota).
Of the total of 127,672 thousand Ron availabilities in cash on 31.03.2022, the share of the modernization quota is of 48,584 thousand Ron.
The effects of the three activity areas (operation, investments and financing) over the cash in the 12 months period of 2022 reveal the followings:
- | the operating activity triggered a cash-flow in amount of 116,514 thousand Ron (+); |
- | the investments activity ended with a negative cash-flow in amount of 114,514 thousand Ron (-); |
- | the financing activity decreased the total cash flow by 66,079 thousand Ron (-). |
As compared to the previous year, the cash coming from the operating activity is by 47,069 thousand more than in 2021, due to the increase in the transported quantities and augmentation of transport tariffs, but also due to the increase in interest receipts related to bank investments.
The net cash from the investment activity registers a negative value, higher by 98,890 thousand Ron as compared to the level registered in 2021, due to the increase of the cash outputs from the investment activity (increase of the investments related to the public domain financed from the modernization quota).
The net cash from the financing activity registers in both compared periods negative amounts determined by the payment of dividends to the shareholders and the amounts related to financial leasing and renting.
The internal control and the risks management systems in the financial reporting process have the following main objectives:
- | Compliance with the financial-accounting legislation in force and the reporting standards; |
- | The application of the accounting standards approved and of the instructions drafted by the management with regards to the financial information; |
- | Ensuring the reliability of the financial information. The objective aims to ensure that accounting, financial and management information communicated or published are complete and accurately reflect the activity and situation of the entity; |
- | Prevention and detection of frauds and accounting and financial irregularities. |
The fulfillment of these objectives is being supported by:
- | Personnel recruitment with an adequate level of competence, in compliance with the company’s needs and the existence of a continuous professional development plan to enable the upgrade of knowledge related to the accounting and fiscal legislation; |
- | Clear definition of the responsibilities related to each person involved in the financial reporting process, respectively the separation of attributes, so that the approval, audit and registration attributions be, in a fair measure, awarded to different persons (as per the company’s organization chart). |
- | Design and implementation of several internal procedures regarding the counting and control of the accounting-financial operations, settlement of the information circuits and the related audits thereof, to ensure the quick, fair and complete centralization of the financial information, as per the internal procedures manual; |
- | The financial preventive audit system; |
- | Identification of risks in relation to the financial reporting process, the assessment of the effectiveness and efficiency of the application of the internal procedures regarding the processes relevant to the financial reporting by the internal audit department and communication of the identified shortcomings to the Board of Directors; |
- | The accounting policies manual drafted as per the legislation in force, approved by the Board of Directors; |
- | The existence of a calendar and a well-defined process with regards to the elaboration of accounting and financial information compliant with the financial-accounting and capital market reporting requirements, as well as the checking and appropriate approval thereof by the Board of Directors, in view of publication thereof. |
In 2022, the Company performed the following significant transactions with affiliated parties:
Partner (thousand RON) | Unsettled amounts at December 31st 2021 | Procurement Period (01.01.2022-31.12.2022) | Settlements Period (01.01.2022- 31.12.2022) | Unsettled amounts on December 31, 2022 |
SNTFM CFR Marfă S.A. | 5,793 | 73,827 | 70,611 | 9,009 |
ELECTRICA FURNIZARE S.A. | 0 | 23,413 | 13,917 | 9,496 |
SPEEH HIDROELECTRICA S.A. | 0 | 12,593 | 12,593 | 0 |
Table 29 Purchases from affiliated parties
The amounts are in thousand RON and VAT inclusive.
31.12.2022 | 31.12.2021 | |
Advance payments granted to affiliated parties | ||
ELECTRICA FURNIZARE S.A. | 1,541 | 0 |
Guarantees granted to affiliated parties | ||
SPEEH HIDROELECTRICA S.A. | 1,989 | 0 |
Guarantees received from affiliated parties | ||
SNTFM CFR Marfă S.A. | 500 | 500 |
Table 30 Prepayments and guarantees given to affiliated parties and guarantees received from affiliated parties
Evolution of “COTE share”
The shares issued by CONPET S.A. are traded on the regulated market administered by the Bucharest Stock Exchange, on the Principal segment, at Equity sector - category Premium, under “COTE” symbol.
At the end of 2022, the trading price of CONPET shares recorded a decrease by 12.91 % compared to the closing price of the last trading day of the previous year.
In summary, the transactions recorded with CONPET shares on Bucharest Stock Exchange, in 2022, are as follows:
- | 19,971 transaction have been performed, 33% more YoY (15,019 transactions); |
- | the total volume of traded shares amounted to 990,838 shares, 2.64% higher than the volume recorded in 2021 (965,333 shares); |
- | the total value of trades amounted to 72,984,780 Ron, 13.46% lower than the value recorded in 2021 (84,336,132 Ron); |
- | the average trading price was of 71.21 Ron/share, lower by 16.15 RON/share versus the average price of the shares registered during 2021 (87.36 RON/share); |
- | the trading price registered the maximum value, respectively 82.40 Ron/share at the beginning of January; |
- | a peak of the transactions was recorded on 22.03.2022, when a total volume of 93,111 shares was traded, in amount of 7,294,913 Ron, representing 99.90% of the total volume of the COTE shares traded during 2021; |
- | the market capitalization at the end of December 2022 was of 586,980,398 Ron, decreasing by 14.18% as compared to the value recorded at the end of 2021 (683,944,712 Ron). |
The main trading indices of 2022 for the shares issued by CONPET S.A. are presented in the following table:
Indices | Average price (RON/share) | No. of trades | No. of traded shares | Value of trades (RON) |
Month | ||||
January | 80.31 | 1,415 | 68,829 | 5,502,880 |
February | 79.10 | 1,398 | 79,386 | 6,144,622 |
March | 75.12 | 2,794 | 212,914 | 16,329,391 |
April | 77.54 | 1,756 | 139,718 | 10,780,062 |
May | 75.83 | 2,329 | 156,897 | 12,010,484 |
June | 69.32 | 1,746 | 55,911 | 3,824,875 |
July | 67.50 | 1,208 | 48,178 | 3,226,154 |
August | 67.65 | 1,872 | 76,949 | 5,187,664 |
September | 64.87 | 1,888 | 50,921 | 3,287,566 |
October | 63.63 | 1,085 | 20,463 | 1,291,294 |
November | 65.38 | 958 | 30,674 | 1,999,263 |
December | 68.32 | 1,522 | 49,998 | 3,400,525 |
Cumulated | 71.21 | 19,971 | 990,838 | 72,984,780 |
Table 31 - Main trading indices
Currently, CONPET S.A. is included in 7 indices of the total of 9 of the Bucharest Stock Exchange, namely BET, BET-TR, BET-XT, BET-XT-TR, BET-BK, BET-NG and BET PLUS.
Chart 20 - Evolution of COTE shares vs. stock indices (rebased) where it is included in 2022 (RON)
Chart, evolution of the trading price of CONPET S.A. shares, in 2022, is the following:
Stock Market indicators | Period | |||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
PER | 12.03 | 9.04 | 11.36 | 11.20 | 12.13 | 10.00 |
P/BV | 1.08 | 1.02 | 1.04 | 1.01 | 1.09 | 0.91 |
EPS | 8.26 | 8.59 | 7.01 | 6.80 | 6.51 | 6.78 |
DIVY (dividend yield) | 26.56 | 10.35 | 9.38 | 9.26 | 8.73 | 7.28 |
Table 32 - Main stock performances indices
On 31.12.2022, according to the TOP 30 Issuers by capitalization, CONPET ranked the 29th, with a market capitalization of 586,980,398 Ron (118.64 mEUR), which represents a share of 0.30% in the total market capitalization.
The Dividend Policy
Within the last 5 years, CONPET fulfilled its commitment to award a yield to its shareholders by means of a sustainable policy and distributed dividends in a quota comprised between 93.59% and 98.10% of the net accounting profit.
The dividend policy of CONPET S.A. is published on the company's website.
The net profit distribution decisions concern the company’s options between partial or full reinvestment of the net profit and/or distribution in the form of dividends.
Depending on the situation prevailing at the time of the proposed profit allocation, deviations from the policy may occur as a result of specific legal requirements applicable at that date, changes in the tax framework, depending on capital requirements for investments, etc.
The rate of distribution of dividends, set out in the dividend policy, which the Board of Directors will consider in the formulation of the proposal to the General Meeting of Shareholders of CONPET S.A. will be between 85 % and 100 % of the net accounting profit.
The gross dividend per share is the share of the company’s net profit that is calculated and paid to shareholders for each share held.
The evolution of the dividends distributed from the net profit for the period 2019 - 2021 is as follows:
Share of profit | GMS date | SUBSTANTIATION DATA | Total gross dividends due - RON- | % of net profit | Gross dividend/share - RON- | Paid dividends - RON- | Net dividends accumulated on 31.12.2022 |
2019-Dividend out of the Profit of the year, from reserves and retained earnings | 29.04.2020 | 11.06.2020 | 61,055,584 | 98.10% | 7.05 | 59,388,860.75 | 1,666,723.25 |
2020-Dividend out of the Profit of the year, from reserves and retained earnings | 28.04.2021 | 08.06.2021 | 59,707,439 | 97.48% | 6.89 | 58,027,283.61 | 1,680,155.39 |
2021-Dividend out of the Profit of the year, from reserves and retained earnings | 28.04.2022 | 25.05.2022 | 63,057,849 | 97.14% | 7.28 | 61,170,656.37 | 1,887,192.63 |
Table 33 - Evolution of dividends distributed in the period 2019-2021
The return on investment and dividend yield in the period 2015-2022 are shown in the chart below:
The dividend per share calculated on the basis of the amounts distributed to the net profit in 2021 and from the retained earnings was 7.28 Ron, thus offering its shareholders a dividend yield of 9.41%, thus ranking on the second place in the top of dividends granted by a company listed on the Bucharest Stock Exchange.
Own shares, issuance of bonds or other debt instruments
CONPET did not perform transactions having as scope purchase of own shares and does not hold own shares at the end of 2022.
CONPET has no branches and there are no shares issued by the parent company and owned by the branches.
CONPET has not issued Bonds or other debt instruments.
Corporate governance continues to be in a process of adapting to the demands of a modern economy, to the obvious globalization of social life as well as to the information needs of investors and third parties interested in the activity of the companies.
The corporate governance at the level of CONPET is organized and conducted in accordance with the Romanian legislative framework, namely the Companies Law no. 31/1990 and the Government Emergency Ordinance no.109/2011 on corporate governance of the public enterprises.
CONPET shares are traded starting September 5th, 2013 on the regulated market managed by the Bucharest Stock Exchange (BSE), at category I, under the COTE symbol.
Starting January 5th, 2015, CONPET S.A. is included in the PREMIUM category of the regulated market managed by the Bucharest Stock Exchange.
The Corporate Governance system of CONPET is constantly improved, as to be compliant with the rules and recommendations applicable to a company listed at the BVB.
Among the measures already implemented, please note:
- | the inclusion in the administrators’ annual report of a chapter devoted to corporate governance with reference, inter alia, to the information related to the Board of Directors and the consultative committees, namely: the Audit Committee, the Nomination and Remuneration Committee, the Development and Investors and Authorities Relationship Committee; |
- | diversification of communication with shareholders and investors through the inclusion on the web page of the releases addressed to market participants, half-yearly financial statements, annual reports, procedures to be followed in order to access and participate to the GMS; |
- | the establishment of a specialized entity dedicated to the relationship with investors and shareholders. |
The Corporate Governance Rules
As an issuer listed on the Bucharest Stock Exchange, CONPET has promoted the CONPET Corporate Governance Rules. This document represents the voluntary assumption by the Company of the corporate governance principles, taking into account the characteristics and its specific activity in accordance with the principles set out in the Corporate Governance Code of Bucharest Stock Exchange. The regulation is a public document and can be read on the company’s website by accessing the following link:https://www.conpet.ro/guvernanta-corporativa/regulament-de-guvernanta-corporativa/.
Other applicable documentation
For the application of the general regulatory framework, CONPET has adopted documents by which corporate governance is transposed into practice:
The Articles of Incorporation of CONPET, comprising provisions relating to the management bodies (General Meeting, Board of Directors, Executive Management) as well as their powers and operating procedures thereof. | |
- | The Rules for the organization and functioning of the Board of Directors, detailing and operationalizing how this body meets, how it analyzes, discusses and makes decisions, how it interacts with the executive management and with other parts. |
- | The Regulation for the organization and functioning of CONPET, the Code of Ethics, the Internal Regulations, which incorporate, detail and operationalize certain aspects incident to the governance framework of the company. |
Statement on the Conformity with the Provisions of the Corporate Governance Code issued by Bucharest Stock Exchange
Table 34 – Statement on the Conformity with the Provisions of the Corporate Governance Code issued by Bucharest Stock Exchange
Actions for further improvement of CONPET corporate governance
With its listing at BVB, CONPET has undertaken the application of the Corporate Governance Code of Bucharest Stock Exchange and, therefore, of the highest corporate governance standards currently existing in Romania.
One of the goals of the company CONPET S.A. is to increase the transparency and visibility of the company on the stock market and to ensure greater openness to shareholders and investors in order to increase the credibility of the company.
Transparency, information and communication
As a company listed in the Premium category of Bucharest Stock Bucharest, CONPET fully complies with the obligations of reporting to the investors and the market in general, drafting and submitting the periodic and current reports required by the regulations of the Stock Exchange.
As a company that operates in a competitive environment of great significance for the economy in general, CONPET S.A. seeks to achieve the right balance between information of a confidential nature and of public interest. Internal regulations have been adopted for the dissemination of information and compliance with confidentiality.
In accordance with the principles of corporate governance, CONPET has announced the timetable for meetings with analysts and investors. In 2022, telephone conferences and meetings with financial analysts from the capital market have been organized, for the analysis of the periodic reports of the company. The presentation materials prepared on the occasion of the events mentioned above have been published on the company’s website.
Furthermore, particular importance has been given to the relationship with shareholders and investors, by showing increased transparency. The company’s representative answered positive to all the participants to the capital market. In 2022, CONPET took part in numerous events organized within the capital market, showing openness towards both institutional and individual investors.
The company has also provided a contact number and an email address (infoinvestitori@conpet.ro), through which investors can clarify certain aspects or ask various questions, thus getting in direct contact with the company’s investors’ relation team.
The evolution of CONPET S.A. share is monitored by the research departments of the major financial investment services companies from the Romanian capital market. Furthermore, the entity that manages the relationship with the investors maintains a permanent connection with all financial analysts in the capital market.
At CONPET level, the corporate governance structures are:
The General Meeting of Shareholders; | |
- | The Board of Directors and the Consultative Committees; |
- | The Director General. |
General Meeting of Shareholders
At the reference date 31.12.2022, the total number of shares was 8,657,528, owned by 15,408 shareholders. The shareholding structure, corresponding to the consolidated synthetic structure of the shareholders at the same date, was the following:
The Romanian State by the Ministry of Energy (1 Shareholder)
Number of shares: | 5,083,372 |
| 16,775,127.6 |
| 58.7162 |
Legal persons (106 shareholders)
Number of shares: | 1,910,238 |
| 6,303,785.4 |
| 22.0645 |
Natural persons (15,301 shareholders)
Number of shares: | 1,663,918 |
| 5,490,929.4 |
| 19.2193 |
The shareholders exercise their rights at the General Meeting of Shareholders (“GMS”), which is the highest decision-making body of the company. The powers of approval of the General Meeting of Shareholders, the organization and validity conditions of these meetings are set out in the Articles of Incorporation of the company, in accordance with the applicable regulations, and are supplemented with the incident legal provisions. Both the Articles of Incorporation of the company and shareholders’ rights are uploaded on the company’s website at the following web pages:
https://www.conpet.ro/wp-content/uploads/2015/11/Articles-of-Incorporation on 28.04.2022.pdf
https://www.conpet.ro/en/investors-relation/info-shareholders/
According to the law, each subscribed and paid share gives the holder the right to one vote in the General Meeting of Shareholders, the right to elect and to be elected to the governing bodies, the right to participate in the distribution of dividends according to the provisions of the Articles of Incorporation and of the legal dispositions, as well as other rights provided for by them.
Shareholders are entitled to a fair and complete information in the General Meeting of Shareholders on the company’s situation. In case of issuance of new shares, the existing shareholders have preference right to subscription, under the law.
General Meetings are ordinary and extraordinary.
The General Meeting of Shareholders is convened by the Board of Directors, whenever necessary. The convening of the General Meeting of Shareholders shall comply with the legal provisions regarding the companies, as well as the capital market regulations and the provisions of the Articles of Incorporation. The meeting time limit cannot be shorter than 30 days after the publication of the convening notice in the Official Gazette of Romania, part IV.
In order to provide equal treatment and full and fair exercise of all shareholders’ rights, CONPET makes available to them all relevant information regarding the GMS and adopted resolutions, according to the law, both by mass communication means and in the special section opened on the company’s website.
CONPET pays all diligence, in compliance with the requirements of the Legislation in matter, to ease the participation of the shareholders in the sessions of the General Meetings, as well as for the full exercise of the rights thereof. The shareholders may take part and vote, in person, in the General Meeting of Shareholders, but also have the possibility to exercise the vote by representation or by correspondence.
The General Meeting of Shareholders is opened and presided by the Chairman of the Board of Directors or, in his absence, by another administrator appointed by the Chairman of the Board of Directors.
During the General Meetings of Shareholders, the dialog between the shareholders and the members of the Board of Directors and/or the Director General is allowed and encouraged. Each shareholder may address questions to the administrators regarding the company activity, according to the legal provisions.
The decisions made by the General Meetings of Shareholders, under the law, and of the Articles of Incorporation are binding even for the shareholders that did not take part to the meeting or voted against.
The decisions of the General Meeting of Shareholders which are contrary to the law or the Articles of Incorporation can be challenged in court, according to the law.
The Ordinary General Meeting of Shareholders has the following main responsibilities:
- | discusses, approves or modifies the annual financial statements, based on the administrators’ report and the financial auditor’s report; |
- | elects and revokes the administrators according to the law; |
- | approves the financial and non-financial performance indicators of administrators, belonging to the component management proposal of the management plan drafted under art. 30 of GEO no. 109/2011 on corporate governance of public enterprises; |
- | appoints or revokes the financial auditor and sets forth the minimum duration of the financial audit contract; |
- | sets the remuneration level and any other amounts and advantages due to the administrators, as well as the general limits of the remuneration of the directors with mandate; |
- | approves the Organization and Functioning Regulation of the Board of Directors and sets out the competencies thereof; |
- | approves the Revenues and Expenditure Budget (R.E.B.) and the investment program for the next financial year, as well as the Budget rectification; |
- | approves the profit distribution according to the provisions of the normative acts in force and determination of dividend per share profit; |
- | passes judgments over the administrators’ management and the means to recover the losses they have caused to the company; |
- | decides upon the pledging, leasing or dissolution of one or several units of the company. |
The Extraordinary General Meeting of Shareholders has the following main responsibilities:
changing the legal form of the company; | |
- | changing the location of the company’s headquarters; |
- | changing the company’s line of business; |
- | establishment or disestablishment of subsidiaries; |
- | prolongation of the company’s life; |
- | share capital augmentation; |
- | reduction of the share capital or replenishment thereof by issuing new shares; |
- | merger with other companies or division of the company; |
- | anticipated dissolution of the company; |
- | conversion of the shares from one category into another; |
- | conversion of a category of bonds into another category or into shares; |
- | bond issuance; |
- | change of nominal value and number of shares; |
- | decides upon the contracting of medium and long-term bank loans, including external ones; establishes the competencies and level for contracting the current bank loans, trade loans, as well as the level of the guarantees; |
- | decides upon the participation, according to the law, in the establishment of new legal persons or in the association with other legal or natural persons in the country or abroad; |
- | -may delegate to the BoD the execution of responsibilities specified in Art. 15 para. (4) letters b), c) and f). The delegation of the duty in Art. 15 Para. (4) Letter c) cannot concern the main business area and the core business of the company; |
- | decides on what market the securities issued by the company are to be traded and chooses the authorized independent registrar that manages the registers of the shares issued by the company; |
- | any other amendment of the Articles of Incorporation or any other decision for which the approval of the Extraordinary General Meeting of Shareholders is asked. |
The Board of Directors
The Company is administered by a Board of Directors made of 7 administrators. The administrators can act as shareholders. For the appointment of an administrator to be legally valid, the person appointed must expressly accept.
The Board of Directors is ruled by a Chairman. The Chairman is elected by the Board of Directors, among its members. The removal from office of the chairman is also attribute of the Board. The decision on the appointment or revocation shall be taken by majority vote of the members of the Board.
The Chairman of the BoD of the company cannot be the Director General.
The Board of Directors meets usually at the company’s headquarters or any place of business of the company or in any place communicated by convocation. Operational meetings of the Board of Directors may be organized by means of remote communication meeting the technical conditions necessary for the identification of the participants, their effective participation in the meetings of the Board of Directors and the retransmission of deliberations on a continuous basis (via e-mail, telephone, video conference or other communication equipment), whenever necessary, but at least every 3 months, at the convocation of the Chairman or at the reasoned request of 2 of its members or of the Director General. The Board is presided over by the Chairman. If the Chairman is temporarily unable to exercise his powers, during the respective state the Board may assign another administrator serving as chairman. If the Board shall be convened at the reasoned request of at least two of the administrators or the Director General, the Agenda is set by the authors of the request. The Chairman must act on such a request.
The Board of Directors may not decide on matters not included on the Agenda, except for emergencies that were accepted by all administrators. The Chairman shall decide upon the urgency of the problems. To decide on emergency, the absent members will be consulted upon, by various means of distance communication.
The Board operates under its own rules and regulations in force.
For the validity of resolutions, the presence (directly or by proxy) of at least five council members is required and decisions are taken by majority vote of the members present. The chairman of the Board will have a casting vote in case of equal votes.
The members of the Board of Directors can only be represented at meetings of the respective body by other members herein. A member present may represent only one absent member.
For the decisions taken in meetings in which a board member did not attend, he remains liable if, within 30 days since he took notice of them, he did not make resistance in the forms specified by law.
The Agenda is set by the Chairman. The convening notice, agenda and meeting materials are sent to the administrators long enough before the meeting date, the time-limit being established in the regulation of the Board. The protocols of the meeting are contained in a register of meetings and deliberations of the Board, by the care of the chairman of the Board. The protocol contains the names of participants, policy deliberations, decisions, number of votes and dissenting opinions. It is signed by the Chairman of the Board, the other administrators and the BoD secretariat, being contained in the register of meetings and deliberations of the Board. The BoD Secretariat is from outside the Board of Directors, being provided by staff from the BoD and GMS Secretariat Bureau.
The structure of the Board of Directors is diverse in both men and women of different professions (engineers, jurists and economists) with professional experience in oil and gas, energy, investment, consulting fields, legal etc.).
After completing the selection procedure provided by GEO no. 109/2011 on the corporate governance of public enterprises, approved with amendments and completions by Law no. 111/2016, the Ordinary General Meeting of Shareholders, in the meeting dated 22.08.2018, following the application of cumulative voting method, appointed the following administrators of the company: Gheorghe Cristian – Florin, Iacob Constantin – Ciprian, Popa Claudiu – Aurelian, Gavrilă Florin – Daniel, Albulescu Mihai – Adrian, Meșca Darius – Dumitru, Pavăl Karina, with a period of 4 years’ mandate, respectively starting from 22.08.2018 up to 21.08.2022 (inclusive of).
During the 4-year mandate, there were two changes in the composition of the Board of Directors, namely the waiver of the mandate and the capacity of administrator by Mrs. Pavăl Karina (April 2019) and Mr. Meşca Darius- Dumitru (March 2021).
On the vacancy due to the resignation of Mrs. Pavăl Karina was appointed, by the OGMS Resolution dated 30.09.2019, Mr. Buică Nicuşor - Marian as administrator of the Company CONPET SA, for a duration of mandate starting from the date of the OGMS Resolution (30.09.2019) up to the end of the mandate of the current Board of Directors (21.08.2022, inclusive of).
On the vacancy due to the resignation of Mr. Mesca Darius - Dumitru, on 23.03.2021, was appointed Mrs. Kohalmi - Szabo Luminița - Doina as provisional administrator, in compliance with the provisions of Art. 1372 para. 1 of Law no. 31/1990 on the companies, republished, further amendments and completions and of Art.19 para. (4) of the Articles of Incorporation of CONPET S.A., with a duration of mandate starting 08.04.2021 until the meeting of the Ordinary General Meeting of Shareholders, but no later than 07.08.2021.
Subsequently, Mrs. Kohalmi - Szabo Luminița - Doina was appointed, by OGMS Resolution no. 2/04.08.2021, as provisional administrator of CONPET S.A., with a term of office of 4 months, starting with the date of the O.G.M.S. Resolution (04.08.2021) until the date of 03.12.2021 (inclusive of) or until the completion of the recruitment and selection procedure provided for in GEO no. 109/ 2011 on the corporate governance of public enterprises, if this takes place earlier than 4 months as of the appointment of the provisional administrator by the OGMS.
By the OGMS Resolution no. 4/07.12.2021, Mrs. Kohalmi - Szabo Luminița - Doina was appointed in the capacity of provisional administrator of the Company CONPET S.A, with a term of office of 4 months as of the date of the OGMS Resolution, respectively as of 07.12.2021 until 06.04.2022 (inclusive of), or until the completion of the recruitment and selection procedure provided for in GEO no. 109/2011 on corporate governance of public enterprises, if this takes place earlier than 4 months as of the appointment by the OGMS of the provisional administrator.
By OGMS Resolution no. 2/28.04.2022, Mrs. Kohalmi - Szabo Luminița - Doina has been appointed as provisional administrator of the company CONPET SA, with a duration of mandate of 4 months as of the date of the OGMS Resolution, respectively 28.04.2022 and until 21.08.2022 (inclusive of) - the date of expiry of the mandate of the Board of Director's members.
By the OGMS Resolution no. 4/18.08.2022:
- | the renewal of the term of office of the directors of the company in office for a period of 4 years has not been approved; |
- | 5 administrators were appointed as provisional administrators of the company CONPET S.A., respectively Mr. Gheorghe Cristian - Florin, Mr. Buică Nicușor- Marian, Mr. Albulescu Mihai- Adrian, Mrs Tănăsică Oana - Cristina, Mrs. Kohalmi - Szabo Luminița - Doina, with a duration of mandate of maximum 4 months, starting with 22.08.2022 and until 21.12.2022 (inclusive of), as per the provisions of Art. 64^1, para. (5) of GEO no. 109/2011, with the possibility of extension of the mandate by another 2 months for the following persons: Mr. Gheorghe Cristian - Florin, Mr. Buică Nicușor- Marian, Mr. Albulescu Mihai- Adrian, Mrs Tănăsică Oana - Cristina, Mrs. Kohalmi - Szabo Luminița - Doina. |
- | The appointment of Mr. Popa Claudiu- Aurelian, Mr. Iacob Constantin - Ciprian and Mr. Gavrilă Florin - Daniel in the capacity of provisional administrator of the Company CONPET S.A. has not been approved. |
By the BoD Decision dated 22.08.2022, Mr. Gheorghe Cristian - Florin has been appointed in the capacity of Chairman of the Board of Directors of CONPET SA, according to the provisions of art. 140^1 para. (1) of Law no. 31/1990 on companies, republished, with subsequent amendments and completions and Art. 19 para. (3) of the Articles of Incorporation, namely starting with 28.08.2018 and until 21.12.2022 (inclusive of).
By BoD Decision dated 26.08.2022, on the vacant seats following the OGMS Resolution no. 4/18.08.2022 (two vacancies starting with 22.08.2022), have been appointed the following provisional administrators: Mr. Gavrilă Florin – Daniel, Mr. Zaman Andrei – Mihai. The duration of the mandate of the provisional administrators shall be starting 26.08.2022 until the convening of the OGMS, having on the agenda the appointment of provisional administrators, but no later than 21.12.2022 (inclusive of), i.e. the date of the end of the mandate of the Board of Directors appointed by OGMS Resolution no. 4/18.08.2022.
By the OGMS Resolution no. 6/28.10.2022:
- | The OGMS noted the termination on the date of the OGMS meeting - 28.10.2022, of the mandate of the provisional administrators appointed by BoD Decision no. 17/26.08.2022, respectively Mr. Gavrilă Florin – Daniel and Mr. Zaman Andrei – Mihai. |
- | appointed Mr. Gavrilă Florin- Daniel, Mr. Zaman Andrei - Mihai in the capacity of provisional administrators on the vacancies within the Board of Directors on the date of the OGMS, with a term of office starting from 28.10.2022 and until 21.12.2022 (inclusive of) – the date of expiry of the mandate of the provisional administrators appointed by OGMS Resolution no. 4/18.08.2022, in accordance with the provisions of art. 64^1, Para. (5) of GEO no. 109/2011, or until the completion of the recruitment and selection procedure provided for in GEO no. 109/2011 on the corporate governance of public enterprises, with the possibility of extending the mandate by another 2 months. |
By OGMS Resolution no. 7/14.12.2022 has been approved the extension, based on the provisions of art. 64 ^1 para. (5) of the Government Emergency Ordinance no. 109/2011 on the corporate governance of public enterprises, subsequent amendments and additions by Law no. 111/2016, of the duration of the mandate contracts of the provisional administrators of the company, appointed by OGMS Resolution no.4 dated 18.08.2022 and respectively OGMS Resolution no. 6 /28.10.2022, with a period of 2 months, respectively from 22.12.2022 until 21.02.2023 (inclusive of), or until the completion of the selection procedure provided for in GEO no. 109/2011 on the corporate governance of public enterprises, approved with amendments and additions by Law no. 111/ 2016, if this takes place earlier than the expiration date of their mandate, as follows: Mr. Gheorghe Cristian - Florin, Mr. Albulescu Mihai- Adrian, Mr. Buică Nicușor- Marian, Mrs. Kohalmi - Szabo Luminița - Doina, Mrs. Tănăsică Oana - Cristina, Mr. Gavrilă Florin - Daniel, Mr. Zaman Andrei - Mihai.
By BoD Decision dated 20.12.2022, Mr. Gheorghe Cristian - Florin has been appointed in the capacity of Chairman of the Board of Directors of CONPET S.A., according to the provisions of art. 140^1 para. (1) of Law no. 31/1990 on companies, republished, with subsequent amendments and completions and Art. 19 para. (3) of the Articles of Incorporation, namely starting with 22.12.2022 and until 21.02.2023 (inclusive of).
The CV’s of the members of the Board of Directors of CONPET SA are available on the company’s website https://www.conpet.ro/corporate - governance/The Board of Directors/.
In 2022, the members of the Board of Directors did not own share in CONPET SA.
Consultative Committees
Within the Board of Directors there are constituted the following Consultative committees:
- | The Nomination and Remuneration Committee; |
- | The Audit Committee; |
- | The Committee for Development and Relation with the Investors and Authorities. |
Composition of the Consultative Committee
On December 31, 2022 the composition of the Consultative Committee is the following:
The Nomination and Remuneration Committee is made out of 5 independent, non-executive administrators: Albulescu Mihai - Adrian – president; Buică Nicușor - Marian - member, Gheorghe Cristian - Florin - member, Kohalmi - Szabo Luminița - Doina - member and Gavrilă Florin - Daniel - member.
The Audit Committee is made out of 3 non-executive, independent administrators: Gavrilă Florin - Daniel - president; Buică Nicușor - Marian - member and Zaman Andrei - Mihai - member.
The Committee for Development and Relation with the Investors and Authorities is made up of 3 non-executive, independent administrators: Tănăsică Oana - Cristina - president, Albulescu Mihai - Adrian - member, Kohalmi - Szabo Luminița - Doina - member.
The terms of reference of the Board of Directors and of the Consultative Committees may be consulted at the web pages: https://www.conpet.ro/wp-content/uploads/2015/11/Organizational-and-Operational-Rules-and-Regulations-the-Board-of-Directors3.pdf, respectively https://www.conpet.ro/wp-content/uploads/2015/11/Internal-rules-and-functioning-of-the-Comittees3.pdf for the Consultative Committees established at the BoD level.
The Consultative Committees meet whenever necessary at the call of the President, and the proposals/recommendations made to the Board of Directors (to substantiate its decision-making) are adopted by a majority of the votes cast. Attributions and responsibilities of the consultative committees are being established by the Board of Directors.
The Summary of the Activities performed in 2022
In 2022, the Board of Directors held 29 meetings, and the Consultative Committees held 41 meetings, thus: 10 meetings of the Audit committee, 22 meetings of the Nomination and Remuneration committee and 9 meetings of the Development and Investor and Authorities Relation committee.
The meetings of the Board of Directors have been carried out according to the agenda established a day before each meeting: The main decisions within the meetings are the following:
- | endorsement of 2022 Revenues and Expenditure Budget (Budget) by the OGMS (also comprising the estimates for 2023– 2024); |
- | endorsement of the Investments Program for 2022 by the OGMS. (also comprising the estimates of the investment expenses in 2023 and 2024) and approval of 2022 Investments Program, the structure being broken down by objectives; |
- | approval of revision of the Investment program for 2022 and estimates for the years 2023 and 2024, within the same values, for the levels falling under the duties of the BoD; |
- | approval of 2022 annual procurement program and of the amendments/modifications made thereof; |
- | analysis of the company’s business presented by the executive management in the monthly reports; |
- | periodical analysis of the physical and value-related implementation of the 2022 Investment Program; |
- | analysis and endorsement/approval of the Consultative Committees Reports, as appropriate; |
- | approval of the Convening Notices of the General Meeting of Shareholders and of the materials related to their Agenda; |
- | monitoring the means to carry-out/status of implementation of the measures ordered by the BoD Decisions; |
- | approval of the results of the annual inventory of the elements similar to assets, liabilities and equities, related to the company’s patrimony; |
- | endorsement of the annual inventory results of the elements similar to assets related to public and private domain of the State; |
- | approval of 2022 current repairs program and of the amendments/modifications made thereof; |
- | approval of sponsorship requests and periodical monitoring of sponsorship contracts concluded by the company; |
- | approval of the Accounting Policies Manual of the company CONPET S.A.; |
- | approval of the dissolution of a number of 29 positions and subsequently of a number of 10 positions within certain organizational entities of the company; |
- | approval of the preliminary report for the period January-December 2021, accompanied by the non-audited preliminary financial statements at the date and for the financial year ended December 31st, 2021; |
- | approval of the updated Organizational and Functioning Rules of the company CONPET S.A. |
- | endorsement of the financial statements at the date and for the financial year concluded on 31.12.2021; |
- | approval of the Annual Report of the company’s administrators for the financial year ended 31.12.2021, report presented in the OGMS; |
- | endorsement of the executive management’s proposals to the OGMS regarding the distribution of the net profit related to the financial year 2021, reinstated with the provision for the employees’ share of profit and the distribution of several amounts from the retained earnings and other reserves, the determination of the gross dividend per share (from the amounts allocated from the profit of 2021 and from the amounts allocated from retained earnings and other reserves), the establishment of the registration date and the establishment of the date of payment of dividends to shareholders; |
- | endorsement of the financial statements at the date and for the financial year concluded on 31.12.2021; |
- | approval of the Annual Report of the company’s administrators for the financial year ended 31.12.2021, report presented in the OGMS; |
- | endorsement of the executive management’s proposals to the OGMS regarding the distribution of the net profit related to the financial year 2021, reinstated with the provision for the employees’ share of profit and the distribution of several amounts from the retained earnings and other reserves, the determination of the gross dividend per share (from the amounts allocated from the profit of 2021 and from the amounts allocated from retained earnings and other reserves), the establishment of the registration date and the establishment of the date of payment of dividends to shareholders; |
- | approval of the Activity Report of the Directors with mandate contracts for the period ended 31.12.2021; |
- | approval of the Report of the Board of Directors regarding the monitoring of 2021 Key Performance Indicators (KPIs) of Administrators falling within the limits approved by the OGMS and submission, to the OGMS, of the proposals related to the approval of the total degree of fulfillment (102.3%) of financial and non-financial key performance indicators (KPIs) for 2021 and to grant the variable component due to the administrators, in accordance with the provisions of the mandate contracts; |
- | approval of the Report of Directors with mandate contract to monitor the framing of key financial and non-financial performance indicators (KPIs) for 2021 within the limits approved by the Board of Directors, i.e. approval of the total degree of compliance (104.1%) of the financial and non-financial key performance indicators (KPIs) of the Director General, the Deputy Director General and the Economic Director for 2021 and the approval of the granting of the variable component due to directors, in accordance with the provisions of the mandate contracts; |
- | submission for approval of the OGMS of the Board of Directors’ Report on the administration activity in 2021, prepared in compliance with the provisions of Article 55 of GEO 109/ 2011 on corporate governance of public enterprises and the provisions of the mandate contract; |
- | approval of the report of the Nomination and Remuneration Committee on the evaluation of the company’s administrators activity in 2021; |
- | approval of the Report of the Nomination and Remuneration Committee on the evaluation of the activity of directors with mandate contract for 2021; |
- | endorsement of the Annual Report of the Nomination and Remuneration Committee to the OGMS related to the remunerations and other benefits awarded to the administrators and the directors with mandate contract during 2021 financial year (Remuneration Report); |
- | approval of the initiation of the procedure regarding the augmentation of the share capital of CONPET S.A. by the value of the land plots related to the 48-land ownership certificates; |
- | endorsement of the proposal advanced to the EGMS to augment the share capital of the company CONPET S.A.; |
- | approval of the proposals regarding the opportunity to maintain CONPET S.A. capacity as a contributing member to the non-governmental organizations where the company is operating; |
- | monitoring the activities and actions carried out monthly by the non - governmental organizations in which CONPET SA is a member; |
- | the empowerment of the Director General to initiate the negotiation procedure with CONPET Trade Union for the conclusion of a new Collective Labor Agreement applicable at unit level; |
- | approval of the conclusion of a new Collective Labor Agreement (Ro. CCM) between the social partners applicable within CONPET S.A. for a period of two years, starting 07.06.2022; |
- | approval of the conclusion of Addenda to the Collective Labor Agreement. |
- | endorsement of the Nomination and Remuneration Reports having as scope the proposal to appoint new provisional administrators by the OGMS and the endorsement of the Mandate Contract of the provisional administrators recommended for the approval of the OGMS; |
- | appointment of two provisional administrators on the vacant seats following the OGMS dated 18.08.2022 and the settlement of their monthly gross fixed allowance, in the same amount as the other provisional administrators; |
- | approval of the conclusion of the mandate contract with the two provisional administrators appointed to the remaining vacant seats in the Board of Directors; |
- | convening of the OGMS for the appointment of two provisional directors; |
- | approval of the 2022 annual Procurement Program - periodic changes/revisions; |
- | approval of the decommissioning (fixed assets and inventory goods in use) belonging to the company patrimony, whose operation is no longer justified and the approval of the proposed means to capitalize these goods; |
- | endorsement of the proposals for decommissioning/declassification of the goods (fixed assets and inventory items of fixed assets nature), belonging to the states public domain, whose operational maintenance is no longer justified and endorsement of the proposed capitalization methods for these assets; |
- | approval of the transaction with the S.N.T.F.M ”C.F.R. MARFĂ”, having as scope the proposal to augment the transport tariff, respectively the augmentation of the estimated contract value by the amount of 3,483,766 RON, submitted for the OGMS approval; |
- | approval of the criteria to distribute and award the amounts paid as employees share of profit related to 2021, subsequent to the OGMS approval; |
- | approval of the rectified Revenues and Expenditure Budget for 2022 (Annexes 1,2,4 and 5); |
- | approval of the amendment of the pipeline routes and supplementation of the value of the works contract having as scope “design and execution works for the achievement of the objective replacement of connection lines - C1-C2 Danube and C3-C4 Borcea Arm crossing; |
- | approval of the Quarterly Report of Directors with mandate contract on the activity, in accordance with the provisions of GEO no.109/2011 on the corporate governance of public enterprises and the provisions of the contract of mandate; |
- | approval of the Quarterly report on the economic and financial activity of CONPET S.A. accompanied by the financial statements prepared in compliance with the Ministry of Public Finance Order no. 2844/2016 and the International Accountancy Standard 34,”Interim financial reporting”. |
- | endorsement of the Quarterly Reports on the Monitoring of Financial and Non-Financial Key Performance Indicators and their total degree of achievement in relation to the administrators and Directors with a mandate contract; |
- | approval of the reconfiguration of the composition of the Consultative Committees set up at the level of the Board of Directors; |
- | approval of the Organizational and Operational Rules and Regulation of the BoD and the Organizational and Operational Bylaws of the Consultative Committees, updated with the BoD members; |
- | approval of the modification of the organizational structure of CONPET S.A. (starting with 16.05.2022); |
- | approval to maintain the delegation of powers to the Director General on the approval of the Staff Establishment in accordance with the new organizational chart, as well as the subsequent amendments thereof, framing within the number of existing job titles; |
- | approval of the Director General’s participation to certain events/conferences and of the travel report; |
- | analysis of the notification on the monitoring of the performance of the internal/management control system and management of the risks CONPET level in 2021; |
- | approval of the Code of Ethics and Integrity of CONPET S.A.- September 2022; |
- | endorsement of the proposal of the executive management to the OGMS to appoint PKF Finconta S.R.L. in the capacity of financial auditor of the company CONPET S.A. and the proposal to set the duration of the financial auditing services contract for a period of 3 years starting with the date of their appointment by the OGMS. |
- | appointment of a provisional Economic Director, settlement of the fixed allowance thereof and approval of the conclusion of the mandate contract; |
- | endorsement and submission for approval to the OGMS of the proposal to extend the duration of the mandate contracts of the provisional administrators of the company, with a period of 2 months, respectively from 22.12.2022 until 21.02.2023 (inclusive of), or until the completion of the selection procedure provided for in GEO no. 109/2011 on the corporate governance of public enterprises, approved with amendments and additions by Law no. 111/ 2016, if it takes place earlier than the expiry date of their mandate; |
- | endorsement and submission for approval to the OGMS of the Addendum to the mandate contracts of the provisional administrators having as object the extension of their duration; |
- | ascertaining the fulfillment of the prescription period for the shareholders' material right to action regarding dividends of the 2018 financial year, not collected until 30.09.2022 and submitting the proposal for approval of the OGMS; |
- | approval of CONPET S.A. Policy regarding transactions with affiliated parties - December 2022; |
- | approval of the Procedural Internal Procurement Norms - revision 5; |
- | appointment of one of the BoD’s member in the capacity of Chairman of the Board of Directors of CONPET S.A., following the settlement of the composition of the BoD composition; |
- | it was taken note of the Information prepared by the executive management regarding the analysis of the anti-bribery compliance function and the analysis carried out by the management for the anti-bribery management system implemented in CONPET S.A. |
Directors with contracts of mandate (the Director General, Deputy Director General and Economic Director)
Following the execution of the recruitment and selection procedure of the Director General and Chief Financial Officer (known as Economic Director) carried out in accordance with GEO no.109/2011 on corporate governance in public enterprises, by the Nomination and Remuneration Committee, the directors with contract of mandate have been appointed by the Board of Directors, as follows:
- | CHIȘ Timur - Vasile, in the capacity of Director General of CONPET S.A. starting 07.11.2018, for a 4 years’ mandate, respectively until 06.11.2022 (inclusive of), delegating to him the management of the company in accordance with the legal provisions in force, the Articles of Incorporation and the Contract of Mandate. Pursuant to the BoD Decision dated 12.01.2021, the BoD took note of the waiver of mandate of Mr. Chis Timur - Vasile, entrusted by the Board of Directors, the contract of mandate terminating under the conditions of Art. 12.1. (c), with the mention that the notice period accepted by the BoD was by the end of 18.01.2021 and also empowered Mrs. Mihaela Anamaria Dumitrache - Deputy Director General, to carry-on the attributions and responsibilities related to the Director General position (here-included the delegations awarded to him by the GMS), as of 19.01.2021, being delegated to her the company management in compliance with the legal provisions in force and the Contract of Mandate, until the appointment of a Director General. |
- | Dorin Tudora was appointed by the BoD Decision dated 05.02.2021, in the capacity of provisional Director General starting 05.02.2021, until the completion of the recruitment and selection procedure for the Director General, in accordance with the provisions of GEO no. 109/ 2011 on corporate governance of public enterprises, but no more than 4 months, respectively from 05.02.2021 to 04.06.2021 (inclusive of). By the BoD Decision dated 20.04.2021, following the unrolling of the recruitment and selection procedure of the Director General carried out in accordance with GEO no.109/2011 on corporate governance in public enterprises approved pursuant by Law no. 111/2016, further amendments and completions, the BoD appointed Mr. Dorin Tudora in the capacity of Director General, with a term of office of 4 years, respectively starting 21.04.2021 until 20.04.2025 (inclusive of). |
- | TOADER Sanda in the capacity of Economic Director of CONPET S.A., starting 07.11.2018, for a 4 years’ mandate, respectively until 06.11.2022 (inclusive of), delegating the management of the company in accordance with the legal provisions in force, the Articles of Incorporation and the Contract of Mandate. Following the termination of the mandate on 06.11.2022, the Board of Directors appointed Mrs. Toader Sanda in the capacity of provisional economic director, with a term of office of 4 months, respectively for the period 07.11.2022 – 07.03.2023 (inclusive of). In the meeting dated 07.03.2023, the Board of Directors approved the extension of mandate by 2 months, namely 08.03. - 08.05.2023 (inclusive of). |
- | DUMITRACHE Mihaela - Anamaria was appointed in the capacity of Deputy Director General, starting with 18.02.2019, for a 4 years’ mandate, respectively until 17.02.2023 (inclusive of), delegating to her the management of the company in accordance with the legal provisions in force and the Mandate Contract. Following the termination of the mandate of the Deputy Director General (18.02.2023), in the meeting dated 14.02.2023, the Board of Directors, taking into account the proposal formulated in the Report of the Nomination and Remuneration Committee, by unanimous votes, appointed Mrs. Dumitrache Mihaela Anamaria in the capacity of provisional Deputy Director General, delegating to her the management of the company according to the legal provisions in force and the Contract of Mandate, with a term of office of 4 months, for the period 18.02.2023 - 18.06.2023 (inclusive of), with the possibility of extending it, for good reasons, up to a maximum of 6 months. |
The Director General of the company has the attributions specified in the contract of mandate, supplemented by provisions of the Articles of Incorporation, the Rules of Organization and Functioning, completed with the applicable legal provisions.
The Director General supplies to the Board of Directors, regularly and comprehensively, detailed information regarding all outstanding aspects for the company business. Additionally, any outstanding event is immediately communicated to the Board of Directors.
Moreover, any member of the Board of Directors may request the Director General information regarding the operative company management.
The management bodies and the administration bodies are active, have the freedom to adopt the decisions they consider right, acknowledge their role and are permanently capable of supporting their decisions against the administration structures or other interested parties that have the right to obtain such information.
The Deputy Director General of the company has the attributions specified in the contract of mandate, supplemented by provisions of the Articles of Incorporation, the Rules of Organization and Functioning, completed with applicable legal provisions.
The Remuneration Policy
The remuneration policy of the administrators and directors with contract of mandate, which also includes the remuneration criteria thereof, was approved by the OGMS Resolution no. 1/28.04.2021 and is posted on the company’s web page.
Remuneration for the members of the Board of Directors, respectively the non-executive administrators is determined by the General Meeting of Shareholders in the structure and limits set by GEO no. 109/2011, consisting of gross monthly fixed allowance and a variable component.
1. Monthly gross fixed allowance
- Members of the Board of Directors which hold mandate up to 22.08.2018.
According to OGMS Resolution no. 5 dated 22.08.2018, the members of the Board of Directors had monthly gross fixed allowance equal to twice the average for the last 12 months of the average gross salary per month for work done according to the core business recorded by the Company, at class level according to the classification of the national economy, announced by the National Institute of Statistics prior to the appointment (NIS letter no. 38226/10.08.2018 and NIS address no.38367/22.08.2018) calculated in the sense of maintaining the monthly net earnings valid for 12 months prior to the appointment, for putting into agreement in accordance with the new mandatory social contributions due under Law No. 227/2015, subsequent amendments and completions, as amended by GEO no. 79/2017 amending and supplementing Law no. 227/2015 regarding the Fiscal Code.
According to Article 7 of OGMS Resolution no. 5/22.08.2018 the maximum gross monthly fixed allowance established for administrators is of 13,022 RON gross/pers., respectively 2 times the fixed allowance calculated in accordance with Article 37 Para. (2) of GEO 109/2011, the amount set out in Article 13 of the approved mandate contract.
- The members of the Board of Directors provisionally appointed starting 22.08.2022 with a term of office of maximum 4 months, until 21.12.2022 (inclusive of) and members of the Board of Directors provisionally appointed starting 26.08.2022 and until 21.12.2022 (inclusive of).
According to OGMS Resolution no.5 dated 20.09.2022 and according to BoD Decision no. 21 dated 22.09.2022, the BoD members have a monthly gross fixed allowance equal to 1.36 times the average for the last 12 months of the average gross salary per month for work done according to the core business recorded by the Company, at class level according to the classification of the national economy, announced by the National Institute of Statistics prior to the appointment (NIS letter no. 37737/11.08.2022).
According to OGMS Resolution no. 7 dated 14.12.2022, has been approved the extension of the duration of the mandate contracts of the provisional administrators of the Company, appointed by the OGMS Resolution no.4 dated 18.08.2022, respectively by the OGMS Resolution no.6 of 28.10.2022, with a period of 2 months, respectively from 22.12.2022 until 21.02.2023 (inclusive of).
The gross fixed allowance due to the members of the BoD for the period 01.01.2022 - 31.12.2022 was of 1,082,989 RON.
2. Variable component
According to Article 37 Para. (2) of GEO no. 109/2011 the variable component is determined based on financial and non-financial performance indicators negotiated and approved by the General Meeting of Shareholders.
By OGMS Resolution no. 7/18.12.2018 were established the key performance indicators and related weights. The variable component of the non-executive members is of maximum 12 monthly fixed allowances.
The variable component due to administrators is granted in conjunction with the annual total degree of fulfillment of financial and non-financial KPIs approved by the contract of mandate.
At the meeting dated 28.04.2022, the OGMS has approved the total degree of achievement (102.3%) of the financial and non-financial key performance indicators for the year 2021, based on the Board of Directors monitoring report on the framing of the performance indicators for the year 2021 in the limits approved by the OGMS and granting the variable component due to administrators for the term of office in 2021, as per the provisions of the mandate contract.
The total gross variable component related to 2021, paid in May 2022 was in amount of 979,688 RON.
The financial statements of 2022 include provisions representing variable allowances for mandate contracts for non-executive administrators in the amount of 599,850 RON and will be paid after the approval of the financial statements in relation to the total degree of fulfillment of the key performance indicators.
- The Directors with mandate contracts
The Director General
The Board of Directors has set the monthly gross fixed allowance of the Director General for execution of the entrusted mandate, respectively 53,160 RON, meaning six times the average for the last 12 months of the gross average earnings for the activity performed as per the core business registered by the company, at class level, according to the classification of the national economy, communicated by the National Institute of Statistics prior to the appointment, (NIS letter no. 13420/19.04.2021 and calculation note no. 13432/19.04.2021 prepared by the Human Resources).
The gross fixed allowance of the Director General of CONPET S.A. between 01.01.2022 - 31.12.2022 was of 637,920 RON.
The gross variable component related to 2021 and paid in 2022 to the Director General was in amount of 465,229 Ron, of which 443,000 Ron variable component of the Director General Mr. Tudora Dorin for the period 21.04.2021 - 31.12.2022, and 22,229 Ron variable component of the Director General Mr. Chis Timur Vasile for the period 01.01.2022 - 18.01.2022 (inclusive of), as starting with 19.01.2021 the contract of mandate has been terminated.
Deputy Director General
The Board of Directors set the gross monthly fixed allowance of the Deputy Director General for the execution of the trusted mandate, respectively 35,290 RON, meaning 5 times the average for the last 12 months of the gross earnings for work done as per the core business registered by the company, at class level according to the classification of the national economy, announced by the National Institute of Statistics prior to the appointment, (NIS address registered under no. 35226/12.02.2019 and the calculation note 6359/18.02.2019 drawn up by the Human resources Department).
The fixed gross allowance granted to the Deputy Director General of CONPET SA between 01.01.2022 - 31.12.2022 was of 423,480 RON.
The gross variable component related to 2021 and paid in 2022 to the Deputy Director General was in amount of 423,480 RON.
The Economic Director
The Board of Directors has set the gross monthly fixed allowance for the Economic Director for the execution of the entrusted mandate, (07.11.2018 - 06.11.2022, inclusive of) respectively 33,680 RON, meaning 5 times the average for the last 12 months of the gross average earnings for the activity performed as per the core business registered by the company, at class level, according to the classification of the national economy, communicated by the National Institute of Statistics prior to the appointment, with applicability as of the date of the addendum to the contract of mandate (NIS address no. 42779/05.11.2018).
Starting with 07.11.2022, Mrs. Toader Sanda has been appointed in the capacity of provisional Economic Director, with a term of office of 4 months, respectively for the period 07.11.2022 - 07.03.2023 (inclusive of). Taking into account the limits of the fixed allowance of the remuneration of the directors with a contract of mandate, set by the OGMS Resolution no. 7/18.12.2018, the Nomination and Remuneration Committee Report registered under no. 40056/28.10.2022, as well as the discussions in the BoD meeting, sets the monthly gross fixed allowance of the provisional Economic Director for the execution of the mandate entrusted by the BoD, in the amount of 48,649 RON, respectively 5 times the average for the last 12 months of the monthly gross average earnings for the activity carried out according to the core business registered by the company, at class level, according to the classification of activities in the national economy, communicated by the National Institute of Statistics prior to the appointment (N.I.S. letter no. 38571/12.10.2022 and calculation note no. 38486/14.10.2022 drawn up by the Human Resources Department).
The fixed gross allowance granted to the Economic Director of CONPET SA between 01.01.2022 - 31.12.2022 was of 431,247 RON.
The gross variable component related to 2021 and paid in 2022 to the Economic Director was in amount of 404,160 RON.
The monthly gross fixed allowance due to the directors with mandate for the period 01.01.2022 – 31.12.2022 was of 1,492,647 RON.
The general limits of the variable component have been approved by the OGMS at the meeting dated April 23, 2019. The variable component is being paid following the approval of the annual financial statements, according to the degree of fulfillment of the key performance indicators.
Total degree of achievement of the key financial and non-financial performance indicators of the directors with contract of mandate for the year 2021 accounted for 104.1%, as per the reports above-mentioned and approved pursuant to the BoD Decision no.4 dated 21.03.2022.
The total gross variable component related to 2021, paid in May 2022 was in amount of 1,292,869 RON.
The variable component of 2022 will be paid following the approval of the financial statements, according to the degree of fulfillment of the key performance indicators.
The financial statements of 2022 include provisions representing variable allowances for mandate contracts for directors with mandate contracts, in the amount of 1,404,615 RON and will be paid after the approval of the financial statements in relation to the total degree of fulfillment of the key performance indicators.
Status of achieving the Key Performance Indicators for 2022
Total Degree of achievement of the performance indicators (GTICP) is the amount of the degree of achievement of every KPI (GIICP) weighted by the weighting coefficient (WICP) related to every KPI.
The calculation formula is the following:
where:
GTICP = Total annual degree of achievement of the KPI
WICP = Weighting Coefficient (weight) for every KPI
GIICP = Degree of achievement of the individual KPI
The degree of achievement of every KPI (GIICP) is the degree of achievement of every KPI, considering the means of calculation provided at every KPI, subsequently weighted by the weighting coefficient (Wi ICP) related to each KPI.
The variable component of the remuneration due to the administrators will be directly proportional to the
GTICP for the corresponding financial year or part of the corresponding financial year and is being granted as follows:
In the event that:
a) GTICP ≥ 100%, the maximum variable remuneration component approved by the OGMS for each administrator is granted in the maximum amount approved by the OGMS.
b) 80% ≤ GTICP< 100%, the maximum variable component of remuneration approved by the OGMS for each administrator with contract of mandate is being awarded in proportion to the total degree of achievement of the performance indicators
c) GTICP <80%, the variable component shall not be awarded.
Financial and non-financial Key performance indicators for 2022 approved for the administrators of the company
According to OGMS Resolution no. 7/18.12.2018 the financial and non-financial performance indicators of administrators were approved (KPIs) for the administrators of the company, for the period 2018-2022, which will be used for determining and granting the variable remuneration component of administrators during the execution of the contract of mandate.
The structure of financial and non-financial KPIs, the performance objectives of each KPI, their weight and the degree of achievement are shown in the table below:
*) Average technological consumption (calculated according to each type of transport)
Table 35 - Financial key performance indicators 2022
For the year 2022, the total degree of achievement of the financial and non-financial key performance indicators for the administrators was of 103.4 %.
Financial and non-financial key performance indicators for 2022 set for the directors with contract of mandate
For 2022, the degree of achievement of the performance indicators set for directors with contract of mandate was of 106.3%.
In Annex 3 of the Report of the Administrators is presented the calculation of the total degree of fulfillment of the financial and non-financial key performance indicators of directors with contract of mandate.
Remuneration and fulfillment degree of the key performance indicators of administrators and directors with contract of mandate are presented in the annual report of the Nomination and Remuneration Committee.
The statement of salary rights by positions and other rights/benefits of CONPET S.A.
The basic salaries within CONPET S.A. are divided into job functions groups, respectively by job function classes. Job function classes are ranked within the company in relation to the level of professional training, the importance of work, the complexity and diversity of activities, the responsibility and impact of decisions, exposure to risk factors, the difficulty of specific activities, the sphere of relationships.
Crt. No. | Job function classes | Basic gross salary Minimum level - maximum level (Ron) |
1 | Class 1 | 3,000– 4,720 |
2 | Class 2 | 3,240– 4,950 |
3 | Class 3 | 3,480– 5,200 |
4 | Class 4 | 3,730– 5,440 |
5 | Class 5 | 3,980– 5,690 |
6 | Class 6 | 4,300– 6,000 |
7 | Class 7 | 4,380– 6,340 |
8 | Class 8 | 4,300– 6,000 |
9 | Class 9 | 4,460– 7,310 |
10 | Class 10 | 4,610– 7,490 |
11 | Class 11 | 4,860– 7,730 |
12 | Class 12 | 5,200– 9,780 |
13 | Class 13 | 9,780– 14,350 |
14 | Class 14 | 10,420– 15,000 |
15 | Class 15 | 17,530– 24,080 |
16 | Class 16 | 21,600– 26,510 |
Table 36 - Job function classes and basic gross salary level
The above classes include the following job functions:
Class 1 - janitor, cargo handler, pipeline route operator, security guard;
Class 2 - boiler operator for steam and hot water boilers, firefighter servant, telephone operator, car vulcanizer
Class 3 - maneuverer, firefighting formation chief, universal carpenter, tractor driver;
Class 4 - warehouse - keeper, pump operator, chief maneuver, forklift driver;
Class 5 - maintenance electrician, cathodic protection electrician, central heating plumber, technical-sanitary plumber, locksmith energy and transport aggregates, mechanical locksmith, boiler mechanic locksmith, auto mechanic, locomotive mechanic, operator, truck driver, car driver, van driver, mason;
Class 6 - electrical equipment electrician, power plants and power stations operation electrician, laboratory assistant, LDH mechanical locksmith, earthing machine machinist, receiver predator of fluid products, crane driver, heavy tonnage car driver, special vehicle driver, universal lathe operator, welder;
Class 7 - dispatcher, RSC/LFI locomotive driver, head of PSI-RSC/LFI formation, shift supervisor (modernized station), department-car driver, management-car driver;
Class 8 - administrative personnel (archivist, cashier, administrative clerk, householder, car operator, secret document inspector, operator of data entry, data validation and processing, shipping – receiving clerk of materials and tools);
Class 9 - secondary education personnel (technicians, foremen, administrative secretary, technical reviewer, maintenance responsible, production responsible, junior programmer, accountant, assistant manager, nurse, commercial activities official, administrative, ITP inspector);
Class 10 - short-term higher education personnel (engineer, sub-engineer, management referent, economist, network administrator, assistant director, assistant manager, communication and image specialist, process improvement specialist, human resources specialist);
Class 11 - head of formation, station manager, warehouse manager, ramp manager, HSEQ responsible, dispatcher;
Class 12 - long-term higher education personnel (engineer, economist, internal auditor, network administrator, information system administrator, assistant manager, chemist, legal adviser, management systems consultant, legal expert, prevention and anti-corruption expert, general medicine doctor, programmer, psychologist, management referent, automation responsible, energy responsible, HSEQ responsible, investment responsible, mechanical responsible, maintenance responsible, production responsible, human resources specialist, communication and image specialist, communication and press relations specialist, process improvement specialist, public relations specialist, events logistics specialist, OSH specialist, translator);
Class 13 - activity coordinator, general manager counselor, site supervisor, head of specialized formation, head of sector, head of office;
Class 14 - head of unit;
Class 15 - chief engineer, regional head, head of department;
Class 16 - director.
Within the company, bonuses of a permanent nature and temporary bonuses are granted.
Benefits of a permanent nature:
- | seniority benefits to be determined on the basis of the total seniority; the seniority benefits is applied to the gross basic salary and can be of 5%, 10%, 15%, 20%, 25% and 30%; |
- | disability benefits, for employees with disability degree, applies a percentage of 9.5% to the gross basic salary. |
The temporary benefits are:
- | night work benefits is granted at a rate of 30% to the gross basic salary, for the time actually worked; |
- | benefits for work on Saturdays and Sundays, a percentage of 25% is granted to the gross basic salary, for the time actually worked; |
- | benefits for working on holidays is granted in a percentage of 100% to the gross basic salary, for the time actually worked. |
Based on the Collective Labor Agreement and within the limits of the provisions of the Revenues and Expenditure Budget approved annually, the company may grant the following rights:
- | meal vouchers with a nominal value of 30 lei for each worked day; |
- | birth aid and/or child adoption aid (in the amount of an average gross earnings per company*); |
- | employee death grant (in the amount of five gross average earnings per company*), death grant spouse, child death grant, parental death benefit (in the amount of an average gross earnings per company*); death benefit for in-laws (in the amount of 1,200 lei); |
- | gifts in cash or kind for the children of the employees on the occasion of the Children's day and Christmas holidays, gifts in cash or in kind for the employees on the occasion of March 8th, gifts in cash or in kind, including gift vouchers, for the company's employees on the occasion of Easter and Christmas holidays, as well as on the occasion of other events (limits set annually depending on the provisions of the Fiscal Code); |
- | aids for serious or incurable diseases and prostheses; |
- | consideration of the touristic services for treatment and rest carried out in the country and abroad, as well as the transport carried out on the occasion of the annual leave (75% of the invoice, but not more than 2,500 lei); |
- | retirement aid (in the amount of one gain, two earnings, three earnings or five average gross earnings per company*, depending on the seniority/seniority in the company); |
- | marriage aid (in the amount of an average gross earnings per company*); |
- | contribution to the stakeholder pension fund - pillar III (Ro. Pilon III), up to a limit of 400 euro annually; |
- | voluntary health insurance, up to a limit of 400 annually euro; |
- | reimbursement of transport from home to the place of work and return based on the regulation, annex to the CLA and in the amount of 75%; |
- | daily allowance for travels in the country, for business, in the amount of 135 ron/day; |
- | the equivalent of expenses with nurseries/kindergartens/ "after school" program, not more than 300 Ron; |
- | other advantages: the employees can rent car and equipment at the same rate as the one practiced by the company in relation to third parties, and the employee bears 50% of the invoice value; the employees receive for seniority in the company (women 30 years old, men 35 years old) a gift consisting of material objects (watches or other personalized objects); |
- | if the company has positive financial results, prizes may be awarded within the limit of a prize fund of up to 10% of the salary fund realized monthly and cumulatively; |
- | the employees' participation to profit is approved by the GMS and is granted on the basis of criteria approved by the Board of Directors. |
* average gross earnings per company - the gain determined on the basis of salary expenses, achieved in the year preceding the granting
The management of Conflicts of Interest
To avoid the occurrence of the conflict of interest, the company has set-out a series of deontological rules that need to be observed both by the members of the Board of Directors as well as by the directors of the company, in correlation with the applicable legal provisions.
The members of the Board of Directors keep the confidentiality of any facts, data or information they have acquired in the course of exercising their responsibilities and understand that they have no right to use or disclose them during or after termination of the activity. Both in the Rules of Organization and Operation of the Board of Directors, the Corporate Governance Rules and in the Code of Ethics of the company CONPET SA there are dispositions with regards to the management of the conflicts of interests and settlements with involved persons. In practice, the members of the Board of Directors shall inform the Board of any conflicts of interest that have arisen or may arise and shall refrain from attending the discussion and voting for the adoption of a ruling on the matter giving rise to the conflict of interest concerned.
The Administrator or Director General who has interests in a particular operation, directly or indirectly, contrary to the interests of the company must notify the other administrators and the internal auditor thereof and must not take part in any deliberations concerning this operation. The same is the duty of the administrator or the Director General if, in a particular operation, knows that the spouse, relatives or affiliates up to the fourth degree inclusively are interested.
The situations in which CONPET S.A. employees may be in conflict of interest, the way of preventing, communicating and solving them were established through an operational procedure, which was approved/updated and processed, during 2022, in accordance with the internal regulations. In practice, the employees have the obligation to refrain from resolving the request, making the decision or participating in making a decision and to immediately inform the hierarchical head directly by submitting a statement regarding the potential/real conflict of interest to the designated person within the competent organizational entity within the company. Also, if an employee of CONPET S.A. has become aware of the commission of violations of the law in the field of conflicts of interest, he can notify it in good faith, by accessing the button Integrity Warnings, available on the company's website.
Social and Corporate Responsibility (CSR)
Corporate social responsibility is a desideratum of the contemporary world and an important premise of the business environment. Corporate Social Responsibility is an inherent part of CONPET’s strategy. Respect for people, development of relationships with employees by creating civilized working conditions, adopting measures regarding the health and safety of employees, providing incentives for personal and professional motivation of employees, responsibility for the environment and involvement in community life are essential values and major priorities for CONPET.
In this context, concerned with the health and safety of employees, as well as with the social protection of employees after the retirement age, CONPET pays on behalf of employees, within the limits of the Revenues and Expenditure Budget, premiums related to voluntary health insurance in accordance with the provisions of Law no. 95/2006 and the Fiscal Code, as well as an annual contribution of up to the equivalent in lei of 400 Euro per employee to the stakeholder pension fund - Pillar III (Ro. Pilon III), based on the contract concluded by the employee with the fund for which he opted.
Employee motivations can thus have beneficial effects on attitudes at work, trust in top management, reputation of the organization, job satisfaction and even performance, since employees of a responsible company are the greatest ambassadors of that brand.
Sponsorship
The sponsorship activity was performed in compliance with the annual Revenues and Expenditure Budget, falling within the sponsorship expenses broken down by areas of interest.
The sponsorship policy of the company supports both traditional projects, those that have an important and lasting impact on the community, as well as requests for smaller scale, which promote, through ideas and actions, the individual performance.
In 2022, CONPET S.A. continued to support the modernization of the health units in Prahova County for the realization of major projects in the medical and health field. Thus, sponsorships were granted for:
- | Ploiesti Municipal Hospital - the Oncology section, project: modernization with medical equipment and medical furniture; |
- | C.F. General Hospital Ploiesti - equipment with absolutely necessary facilities for the proper functioning of the hospital; |
- | The Pneumophthisiology Hospital Floreşti - endowment with medical equipment. |
The company also contributed to the purchase of sanitary equipment and materials for the continuation of medical/surgical activity in hospitals in the Republic of Ukraine.
In 2022, the company supported already traditional projects, such as equipping rural and urban educational institutions with IT equipment, in order to improve students’ access to modern educational resources, supporting sports activities for the benefit of children and young people in Prahova County and sponsoring one of the most prestigious institutions of Prahova culture – Ploiesti Philharmonic.
For the year 2022, in the Revenues and Expenditure Budget of CONPET S.A. there were provided sponsorship expenses amounting to 800 thousand RON.
At the company’s Board of Directors meetings there have been approved, in the period 01.01.-31.12.2022, sponsorship amounting to 773 thousand RON, as follows:
- | 294 thousand Ron - “Education, schooling and sports”; |
- | 350 thousand Ron - “Medical care and health” |
- | 129 thousand Ron - “Other actions and activities”. |
The statement of the sponsorship is disseminated to the public by the publishing of an annual report of the sponsorship awarded by CONPET S.A. on the company website, at the following address https://www.conpet.ro/relatia-cu-investitorii/raportari/rapoarte-anuale/
Actions carried out in view of achieving the strategic objectives contained in the Administration Plan
The strategic objectives contained in the Administration Plan of the company for the period 2018-2022 are derived from the Letter of Expectations of the majority shareholder, the Romanian State, through the Ministry of Energy and aim at increasing the efficiency of the activity and improving the performance of the activity, optimizing the operating expenses, developing new related and non-related activities, defining the company as a regional player, efficient management of human resources and implementing and developing the principles of corporate governance.
The actions undergone in 2022 for the achievement of the objectives in the administration Plan
Objective 1 INCREASING THE EFFICIENCY AND IMPROVEMENT OF BUSINESS PERFORMANCE
Redefining the necessary of the transport infrastructure
During 2022, several steps have been taken to:
- | reconsideration of the pumping scenarios and evacuation of unused stocks on the domestic transport subsystem (Silişte and Orlești stations); |
- | improvement of pumping scenarios on the import transport subsystem with impact on the final energy consumption of the pumps (Călăreți station). |
Initiating the steps towards NAMR for obtaining the approval of conservation or decommissioning/Ministry of Finance for amending the list of inventories of fixed assets in the public domain, depending on the approvals issuance
In April 2022 the Board of Directors of Conpet approved the Report of the Commission for analysis and endorsement on the proposals for decommissioning of damaged or impaired goods resulting from the 2021 annual inventory. After approval, Conpet S.A. submitted to NAMR Bucharest, for the approval of the decommissioning of the approved goods, by issuing a Government decision on the transfer of assets from the public domain of the state to the private domain of the state, in order to capitalize/scrap them, as the case may be.
On 01.11.2022 the annual inventory of assets, liabilities and equity items and proposals for decommissioning/scrapping of assets from the company’s patrimony and the public domain of the state has been made.
The results of the 2022 annual inventory were included in the inventory report of the Central Commission and approved at the meeting of the Board of Directors (BoD) of “CONPET” S.A. on 17.02.2023.
Multi annual investment program
The multi-annual investment program of the company consists mainly of investment objectives to increase efficiency of the National Transport System and its operational safety.
When establishing the multi-annual investment program is intended first, to respect the commitment assumed by the company through the minimum investment program communicated to NAMR, annex to the concession agreement. The investment program 2022-2024 was approved at the Ordinary General Meeting of Shareholders dated 25.02.2022 and was rectified and approved at the Ordinary General Meeting of Shareholders dated 28.10.2022.
Development of investment project management
Conpet carries out a service contract aimed at implementing good practices and computerizing project management processes within the company. Between 2022-2023, the audit and correction of the processes, as well as the support services and training of the company's personnel are ongoing.
The main investment projects carried out in 2022 to achieve the strategic objective
Modernization and monitoring of the Cathodic Protection System related to the National Transport System via Pipelines (SPC)
Conpet S.A. has started a comprehensive project of modernization and monitoring of the cathodic protection system related to the crude oil transport system through pipelines, carried out in several stages.
Between 2017 - 2019, a total of 109 cathodic protection stations were executed.
Starting 2020, another 30 cathodic protection stations are ongoing, with works in 19 locations being completed at the end of 2021.
At the level of 2022, out of the remaining 11 locations, the works for one more location have been completed, and it will be put into operation. For the remaining 10 locations, building permits are in the process of issuance.
Implementation of a GIS System
The feasibility study for the implementation of a geographical property register system was completed in 2017. In august 2019, was signed the contract for the execution of the system’s implementation management, which provides for the completion of the 5-phase project for a duration of 12 months and the 36-months post-implementation technical assistance.
Phase 1 - analysis of the requirements and functional solution design, GIS Desktop Installation, GIS Server Installation, completed at the end of 2019;
Phase 2 - data acquisition from existing sources for the pipeline network and a pilot station, and digitizing properties completed In July 2020;
Phase 3 - tests, completed in September 2020;
Phase 4 - training, ingestion of Production Databases, completed in September 2020;
Phase 5 - pilot use, completed in December 2020.
On 31.12.2022 the 27 months out of the 36 of post-implementation technical assistance were completed.
The introduction of all land in the database has also been completed (including property deeds). The data is updated in accordance with the information in the ERP and is harnessed/updated including on the line of the critical infrastructure.
At the level of the Transport Operations Unit, the PSI network was also implemented, and starting with 2023 the corresponding data will be entered.
ERP Upgrade
In order to determine the new business requirements of the company, the implementation of the project of reconfiguration and implementation of the new ERP system is ongoing.
Rehabilitation of the pipelines under crossing Dunarea river and Borcea Arm
The procurement procedure for the design services and execution of the works for the objective "Replacement of connecting wires crossing the Danube C1-C2 and Borcea arm C3-C4" was completed and the preparatory works for the platform of the directed drilling equipment in area C4 respectively hydraulic tests in area C3 have begun.
By the end of December, the first 20’’ drilling under the Danube and the two 20” and 28” drillings under the Borcea arm were completed.
The implementation of a system for the tele transmission and telemetering of the power consumptions in CONPET locations.
The project for the implementation of the tele transmission and tele management system was started by signing the execution contract during the first quarter of 2022 and at the end of March, 15 locations were handed over. The completion of the works is planned for 2023.
Clarification of the patrimonial situation of CONPET lands
On 28.04.2022 the EGMS approved the start of the operation for augmenting the share capital.
By the date of this report, the land valuation report has been drawn up in accordance with Article 6, Para. 3 of GO no. 834/1991 by the assessor appointed by the Prahova Trade Register Office Prahova county.
By Resolution no. 2 dated 20.09.2022 and Resolution no. 3 dated 21.09.2022, the EGMS of Conpet did not approve the augmentation of the share capital by the value of the unincluded land plots, as, at the two meetings, the quorum of attendance provided for by the law was not met (85%).
Objective 2 Development of new activities, related and non-related to the core business
The development of storage activities/crude oil and oil products handling for third parties
In the context of defining and updating the legal framework on the procedure for delegating the storage obligation in order to ensure the storage of strategic stocks on the territory of Romania, CONPET analyses the conditions necessary for the development of this type of activity. In this regard, the legislative provisions regarding the maintenance of the minimum mandatory stocks of oil and/or petroleum products, their assortment structure as , well as the GD draft for the amendment of Law nr.85/2018 in order to establish the Central Storage Entity, which is in the process of consultation, are constantly monitored.
Assessment of the opportunity/feasibility of the increase efficiency related scenarios of the Rail transport activities.
From the point of view of the efficiency of the railway transport, the re-commissioning of the railway ramp from the Astra Refinery was taken into account, a decision justified by the delays in unloading and the maneuver in the railway ramp from Brazi refinery, declared saturated infrastructure.
Another project to streamline the railway transport activity which is being implemented and aimed at reducing fuel consumption and reducing maintenance and repair costs on existing locomotives is the conversion of diesel-operated locomotives (LDHs) into electric-operated locomotives (LEA or LDE).
In this respect, starting 2019, in the multi annual investment programs, staggered works have been budgeted for:
- | the conversion of LDH 1250 HP locomotives into electric locomotives with electric LEA drive, at the level of H1 2022 being put into operation 2 locomotives (Bărbătești and Pecica); |
- | the conversion of LDH 700 HP locomotives into LDE electric diesel locomotives, a locomotive was put into operation at the Marghita ramp, and for a second locomotive the execution contract was signed. |
For the period 2023-2024, four other locomotives are envisaged for the transformation.
Assessment of the feasibility of the development of transport for atypical products
The executive management initiated a series of meetings and discussions with representatives of companies active in the oil, chemical and petrochemical industries. Preliminary discussions were launched subsequently, on the possibility of providing services for the transport, storage and loading of agricultural and chemical products in areas where CONPET ramps are adjacent to areas with intensive agricultural activity.
Electricity production from renewable resources (pilot project);
At the level of 2022, the opportunity of developing the activity of producing electricity from renewable sources associated with the possibility of obtaining non-reimbursable financing within the National Recovery and Resilience Plan (Ro. P.N.R.R.) for the objective "Development of the activity of producing electricity from renewable sources by implementing a photovoltaic park in the Bărăganu station with financing from own and/or non-reimbursable sources" was reconsidered, being analyzed the conditionalities on the capacities of receipt in NPS – Transelectrica 2022-2025 , respectively the deadline for commissioning the objective established by the non-reimbursable financing program (2024).
In parallel, during 2022, the objective “The realization of a system of electricity production with photovoltaic panels within the Administrative Headquarters 2 of CONPET S.A.” was promoted. Currently, the first three contractual stages have been completed, and the installation of photovoltaic panels will be carried out in 2023.
Objective 3 Defining the company as regional player
In order to support collaboration opportunities by providing information or participation in actions coordinated by the ministry, for the works of the Joint Intergovernmental Commissions for Bilateral Energy Cooperation, in 2022 proposals on areas of interest and topics of cooperation for the Working Groups for bilateral cooperation between Romania and other countries (Saudi Arabia, Hungary) were sent to the Ministry of Energy.
During 2022, the final form updated at the end of 2021 of the EU action plan on European and regional energy interconnections has been analyzed (update of the List of Projects of Common Interest version Nov. 2021 issued by the European Commission – Directorate-General for Energy).
Objective 4 High performance management of the human resources
Reshaping and ongoing adaptation of the human resources in correlation with the technical economic requirements and realities of the company.
The analyses carried out at the level of the units and departments in 2022 aimed at resizing the human resources demand in accordance with the needs of the company in order to streamline the work, which would lead to the increase of profitability through the use with maximum efficiency of the human resources and the efficient use of the working time of the employees. As a result of these analyses and the Substantiation Notes of the Deputy Director General – the Human Resources Department submitted to the Board of Directors, in 2022, 67 positions within organizational entities were approved for elimination, with the consequence of individual dismissal of employees occupying these positions (29 persons starting with 01.04.2022, 10 persons in august 2022 and 28 persons in december 2022).
The development of the specific competencies and basic skills of the human capital
In line with the elaboration of the annual training/professional authorization plans during 2022, after analyzing the primary requests identified at the level of the organizational entities, the annual training and professional authorization programs were elaborated and approved:
During 2022, Conpet employees participated in 2,400 sessions of professional authorizations, external or internal professional training programs.
Internal Training is organized annually by internal trainers and/or experts from the company with a good knowledge of the field and/or relevant experience in the field of technical activity, supporting qualifying session Internship/training/maintenance knowledge in various industries and audit/verification of employees participating in those sessions.
Development of the employees’ results assessment system
At Q1 2022, the evaluation of the individual performances of the employees for the activity carried out in 2021 was started and completed.
At the end of 2022, in accordance with the Regulation on the evaluation of the individual professional performance of Conpet employees - Annex 1 to R.I., the individual objectives, performance indicators, target values and their associated weights for the activity of employees with management positions in 2023, were subject to the conclusion of the addenda to the individual employment contracts of the employees, in the form established at the level of each entity.
Negotiation of the Collective Labor Agreement
In the application of the Collective Labor Agreement – CONPET S.A., between CONPET S.A. and the Free Union of Conpet, between January and May 2022, 8 protocols have been concluded.
As a result of termination of the alert situation, starting March 9, 2022, according to the legal provisions, the Board of Directors empowered the Director General to initiate the negotiation procedure with CONPET Trade Union for the conclusion of a new Collective Labor Agreement applicable at unit level.
During the negotiations, it was taken into account that the rights of the employees established by the collective labor agreement that generates expenses of a salary nature to be within the limits established by the Revenues and Expenditure Budget approved for 2022;
The new Labor Agreement applicable as of 07.06.2022 for a 2 (two) years’ period has been approved by the Board of Directors and has been registered at Prahova Labor Inspectorate.
During 2022, 3 protocols with the Free Trade Union were concluded, and in QIV 2022 two Addenda were concluded at the CLA.
Objective 5 Implementation and development of the corporate governance principles
Active involvement in corporate social responsibility
During 2022, 30 sponsorship contracts totaling 773 thousand Ron have been concluded, representing 97% of the budget approved for sponsorships in 2022. Also, social activities, competitions and internal manifestations specific to the organizational culture, were carried out. The information actions were continued by distributing daily to Conpet employees the official data on COVID-19 made by the Strategic Communication Group - Ministry of Internal Affairs, as well as the articles published in the national and international press about the evolution of the pandemic, the measures taken at national and international level, respectively the prevention rules.
Internal and external communication actions (Facebook page) that promote important events in the company's life, culture, prominent personalities of culture, as well as the most important national historical moments were continued.
The premiere of 2022 was represented by the first blood donation campaign among CONPET employees. Carried out in collaboration with the Blood Transfusion Center Ploiesti, the action proved to be a success by the great involvement of the employees, materialized in a gesture of empathy and solidarity, in the context in which Romania is facing a critical situation in the field.
Development of reporting, control and risk management capabilities
The program for the development of the internal control management system is being updated annually. For 2022, the program has been approved by the Director General in February 2022.
In line with the implementation of the actions established in the Program for the development of the internal control management system according to the reporting related to 2022, all the actions included in the program have been carried out.
Implementation of SR ISO 37001:2017 requirements Anti-bribery management systems
The implementation program of the requirements of SR ISO 37001:2017 anti-bribery management systems has been developed and approved at the end of 2019.
Having in view the training on the requirements of SR ISO 37001:2017 - Anti-bribery management systems, the action was completed during 2021, the target group for training being made up of members of the working group set up for the implementation of SR ISO 37001 requirements, members of the working group on corruption risk management and internal auditors.
All the stages of the program for the implementation of the requirements of SR ISO 37001:2017 Anti-bribery management systems were carried out on time, at the date of reporting the mentioned program being completed.
CONPET S.A. obtained the certification of the anti-bribery management system, implemented according to the requirements of SR ISO 37001:2017.
The Executive Management
Between 01.01.2022 - 31.12.2022, the executive management had the following composition:
Position: | Name and Surname | Observations |
Director General | Eng. TUDORA Dorin | As per Art.1 of BoD Decision no. 8/20.04.2021, following the carrying out of the procedure for the recruitment and selection of the Director General, as per the provisions of GEO no. 109/2011 on corporate governance of public enterprises, appointment based on contract of mandate with a duration of 4 years, respectively as of 21.04.2021, until 20.04.2025 (inclusive of). |
Deputy Director General | Jurist DUMITRACHE Mihaela – Anamaria | Contract of mandate of 4 years period 18.02.2019 - 17.02.2023, inclusive of. |
Economic Director | Econ. TOADER Sanda | Contract of mandate of 4 years, period 07.11.2018 - 06.11.2022, (inclusive of). |
Contract of mandate of 4 months, respectively period 07.11.2022 - 07.03.2023 (inclusive of), with the possibility of extension, for solid reasons, up to maximum 6 months, as per Art. 1 from BoD Decision no. 23/28.10.2022. | ||
Deputy Director General 2 | Jurist LUPEA Ioana Mădălina | As per Decision of Director General no. 338/04.06.2021, appointed in the position of Deputy Director General 2 starting with 15.06.2021, until the termination of the mandate contract of the DG no. 2/21.04.2021, but not later than 17.02.2024 (inclusive of). |
Deputy Director General 3 | Eng. NECŞULESCU Radu Florentin | As per Decision of Director General no. 271/13.05.2022, starting with 16.05.2022, appointment on indefinite period. |
Heads of Units and Chief Engineers: | |
Position: | Name and Surname |
Head of Transport Operations Unit | Eng. STOICA Narcis Florin |
Head of Maintenance Development Unit | Eng. BUZATU Dan |
Head of Critical Infrastructures Unit | Eng. NECŞULESCU Radu Florentin - up to 15.05.2022 |
Head of Commercial Unit | Jurist MANOLACHE Dan |
Head of the HSE Unit | Eng. MARUSSI Mădălina Mihaela |
Head of Communication and Corporate Governance Unit | PATRICHI Bianca Maria |
Investment Development Chief Engineer | Eng. CÎRLAN Florentina – Anca |
Table 37 The Executive Management
Disputes or administrative proceedings
In the last 5 years there have been no disputes or administrative proceedings involving the management of CONPET.
The non-financial statement presents information through which the company’s management wishes to communicate transparently to the business partners, employees, investors, the community in general and any other interested parties the actions taken and the progress achieved by CONPET SA in terms of assurance and continuous improvement of quality of the services provided, environmental protection, occupational health and safety, aspects related to staff and social field, prevention of abuses in human rights matters, ethics and integrity in business and corruption prevention and combating.
Company’s profile
CONPET SA is the operator of the crude oil, rich gas, condensate and ethane National Transport System (NTS). As presented at large in the Report of the Administrators, CONPET SA provides transport services to its customers through both the National Transport System, leased based on the Oil Concession Agreement and by rails, from the loading ramps to refineries.
The operation of the system is achieved through the local dispatchers coordinated by the central dispatcher of the company. The National Transport System consists of the following components:
- | Import Crude Oil Transport System; | |
- | Domestic Transport System, which in turn includes: | |
| - | The crude oil and condensate transport subsystem; |
| - | The rich gas transport subsystem; |
| - | The ethane transport subsystem. |
The powers of each entity within the organizational structure are established by the Rules of Organization and Operation of the company.
Quality, Environment, Occupational Health and Safety Policy
In accordance with the strategic development direction of COPET SA, the Quality, Environment, Occupational Health and Safety Policy aims at satisfying the requirements of the customers and of other relevant stakeholders, complying with the legal requirements concerning the transport of crude oil, rich gas, ethane and condensate and ensuring a healthy and safe work environment for the entire staff, targeting the following lines of action:
- | Ensuring the availability and timeliness of the crude oil, rich gas and condensate transport services; |
- | Efficient solving of interventions on the transport installations without affecting customers and other stakeholders’ interests; |
- | Optimization of technological consumptions of transported product; |
- | Compliance with legal and other requirements relating to occupational safety and health; |
- | Continuously improve performance in environmental protection activity, in particular by adopting prevention measures for pollution, technological risks and accidents which can have negative repercussions on the environment; |
- | Awareness of the company’s staff and of the staff working on behalf of the organization and improvement of communication in order to ensure active participation in the achievement of the goals; |
- | Hazard removal and reduction of risks of occupational illness and injury at work; |
- | Consultation and involvement of workers on any issue related to health and safety at work; |
- | Ensuring appropriate organizational framework for setting the objectives of the integrated management system quality - environment - health and safety; |
- | Permanent assessment of the risks/ opportunities generated by the context in which the organization evolves and of the risks/opportunities related to the processes and establishing actions for their treatment, correlated with the actions established at local/ national level. |
The company’s management pursues consistently the performance concerning quality, environment, occupational health and safety, through the maintenance and continuous improvement of an, Management System in accordance of the reference standards for these areas.
The certification body BUREAU VERITAS issued certificates for management systems implemented in CONPET S.A. according to the requirements of ISO 9001, ISO 14001 and ISO 45001 standards, following the external re-certification audit in September 2022.
The quality of transport services
CONPET aims at fully satisfying customers’ requirements and expectations, fulfilling the obligations undertaken under the Oil Concession Agreement and complying with the regulations and legal provisions at all times.
The main goals pursued by the company in order to ensure an adequate level of quality of the transport services are:
- | Ongoing strengthening and development of the National Transport System by implementing the best technologies for the rehabilitation and modernization of the oil transport infrastructure, so as to ensure the present and future conditions of continuity and quality of the transport services; |
- | Increased safety in operation and reduced technological consumptions; |
- | Continuous improvement of the operational processes to ensure the high level of customer satisfaction through prompt, timely and cost-effective execution of the transport services; |
- | Maintenance of the Integrated Management System certifications according to the reference standards. |
The main directions of action relating to service quality are the following:
- | Ensuring the availability and timeliness of the transport services; |
- | Efficient solving of interventions on the transport installations without affecting customers and other stakeholders’ interests; |
- | Optimization of technological consumptions of transported product. |
The potential risks identified in this regard are as follows:
- | The degradation of the National Transport System, reduced transport capacity, delays in delivery, decreased customer satisfaction, complaints; |
- | Identification of major non-conformities following the certification or surveillance audits and suspension/cancellation of certificates, which could have a negative impact on the image of the organization. |
As a result of the measures taken by the company, the risks mentioned have been maintained at a low impact level. Effective control of risks has materialized through:
- | documentation, implementation and procedure compliance measures; |
- | reviews and internal audits of the integrated management system; |
- | planning and execution of investment and repair works to the National Transport System; |
- | ensuring human resources with skills appropriate for conducting the main processes. |
No major non-conformities have been identified as a result of the external audits for the surveillance of the integrated management system.
The indicators corresponding to the general quality goals, which refer to the increase of customer satisfaction and responsiveness in providing the transport service are:
- | The achievement of the transport program by framing within the contracted technological consumptions; |
- | Observance of the delivery deadline for the transported goods. |
- | The number of complaints received from customers in a year with regards to the conformity of the transport service, with zero target value. |
In 2022 the indicators have reached the target values laid down as follows:
- | the transport program was made without exceeding the contractual limits of technological consumption; |
- | the delivery of transported goods was achieved according to the contract provisions; |
- | there were no complaints from customers. |
Environment
In the field of environmental protection, CONPET management has adopted an environmental policy integrated with the policy on quality and health and safety at work, specific to the company's activity, size and impact on the environment, which would provide the framework for establishing and analyzing general objectives and specific environmental objectives.
Special emphasis was placed on issues related to the needs and expectations of stakeholders (including the demands of the authority) and local environmental conditions or regional that can affect or be affected by the organization, the way the risks and opportunities are treated related to environmental issues for prevention and limitation of their consequences on human health and the environment.
Being aware that the responsibilities towards the environment and the community in which it operates are inextricably linked to the performance it wants to achieve in its own activity and in accordance with the principles of sustainable development, CONPET has committed, through its environmental policy, to:
- | Ensure compliance with legal and other requirements relating to environmental matters; |
- | Continuously improve performance in environmental protection activity, in particular by adopting prevention measures for pollution, technological risks and accidents which can have negative repercussions on the environment; |
- | Permanent assessment of the risks/opportunities generated by the context in which the organization evolves and of the risks/opportunities related to the internal processes and the establishment of actions for their treatment; |
- | Awareness of the company’s staff and of the staff working on behalf of the organization and improvement of communication in order to ensure active participation in the achievement of the goals and the environmental management program. |
In terms of environmental protection and water management, CONPET S.A. activity is authorized in accordance with the provisions of GEO 195/2005 on environmental protection, as supplemented and amended and Water Law no.107/2005, with subsequent amendments and additions.
According to the Ministry of Environment Order 1798/2007 approving the procedure for issuance of the environmental permit, the activity carried out by CONPET is an activity with significant environmental impact. The environment permits issued by CONPET remain valid all along the period the company has been issued annual visa permit - amendment brought by Order 1150/2020.
The identification of environmental aspects and the assessment of their associated impact within the company is carried out for:
- | all the activities performed, included in the area of application of the environment management system; |
- | materials, goods and services that can generate environmental impacts that are supplied/manufactured by suppliers/providers; |
- | new projects and developments/upgrades; |
- | facilities/equipment from a workstation whose operation has been partially of permanently stopped as a result of preservation, respectively of dissolution of work site and that generated or generate impacts on the environment. |
Following the identification of environmental aspects for activities, products and services of the company significant environmental aspects have been retained, which are input and environmental management program.
The update of the lists of environmental aspects and the associated impacts thereof, as well as their centralization is made whenever changes occur, such as:
- | Technology changes; |
- | upgrading or introducing new plant, equipment, use of other raw materials; |
- | occurrence of new requirements, environmental regulations or amendment of the existing ones; |
- | decommissioning of installations and equipment; |
- | preservation/restarting, dismantling of workstations after completion of actions to deal with significant environmental aspects. |
During 2022 were reviewed environmental issues at the sites, significant environmental aspects being included in the "List of significant environmental aspects and associated impacts".
Given the significant environmental aspects identified at company level, the measures of inspection reports/minutes - authorities, concerning compliance with legal and other requirements, etc., during 2022 have been reviewed:
- | The Environment Management Program, |
- | The Action Plan for the fulfillment of the environment objectives at company level, |
- | Register of environmental opportunities. |
The stage of achievement of the objectives and targets set and the stage of the implementation of the actions set for the achievement of the environmental objectives are analyzed annually by the executive management, in the framework of the analysis carried out by the management.
Occupational Health and Safety
Safety and health at work is today the joint concerns of technical and engineering disciplines, interested in finding the most appropriate ways and means of optimizing the human integration into the professional applications system.
The ultimate goal of work safety and health at work is:
- | protecting the life, integrity and health of workers against the risks of accidents and professional diseases that can occur in the workplace; |
- | creating working conditions to provide them stable physically, mentally and socially comfort; |
The main action directions of CONPET SA policy concerning operational health and safety are as follows:
- | Prevention and reduction of occupational diseases and accidents at work; |
- | Consultation and participation of workers on any aspect of health and safety at work; |
- | Ensuring the organizational framework appropriate for setting the goals of the integrated management system quality- environment- operational health and safety. |
- | Permanent assessment of the risks/opportunities posed in the context the organization evolves in and of the risks/opportunities related to the processes and determining the actions for their treatment. |
From the perspective of the obligations and responsibilities arising from the Law no. 319/2006 on safety and health at work and. 1425/2006 approving the Methodological norms for the application of the provisions of the Law on safety and health at work no. 319/2006, the conditions for health and safety at work and occupational accident and diseases prevention are ensured:
- | prevention and protection activities are organized internally through the Prevention and Protection Department; |
- | the duties and responsibilities for safety and health at work are set out incumbent upon the workers, corresponding to the functions exercised, which are specified in the job description; |
- | the areas requiring occupational safety and health signaling and the necessary signaling type according to GD 971/2006 concerning the minimum requirements for the provision of safety and/or health signaling at work are determined; |
- | occupational health and safety clauses are established upon the conclusion of the service contracts with other employers, including those concluded with foreign employers; |
- | authorization is organized for the exercise of trades and professions provided for by the specific Legislation; |
- | the health of the workers is monitored through in-house medical practices and by contracting occupational medicine services. |
In 2022, external checks were carried out by labor inspectors in Braila counties, without being identified irregularities at the level of the checked work sites. In the framework of the scheduled internal controls, all the locations established by the approved control schedule were checked, no serious deviations were found, possibly causing injury and/or occupational illness of workers; the non-conformities found were remedied by carrying out the corrective measures ordered at no additional cost. The identified non-conformities have been remedied by taking the corrective measures ordered at no additional cost.
The starting point for optimization of efforts to prevent accidents and occupational disease at work is "Risk Assessment".
In 2022, the commission established within the company for this purpose analyzed and reassessed the risks for each job/position, activity that is in continuous analysis. By implementing the technical measures, organizational and sanitary from the Prevention and Protection Plan, the level of risk within the company is of 2.87%, value below the maximum allowed limit of 3.5%.
CONPET S.A. implemented, ever since 2007, an occupational health and safety management, integrated with the other implemented management systems and the compliance with the requirements of standard ISO 45001 being certified by BUREAU VERITAS CERTIFICATION body, following the annual external audits performed.
In the light of the obligations and responsibilities arising from fire defense and civil protection legislation with implications for the safety and health at work of workers, prevention and intervention measures shall be ensured by meeting/complying with the applicable legal requirements and fire defense activity shall be organized at company level:
- | is established the Emergency Situations Office - structure with responsibilities in emergencies, specialized in risk prevention of occurrence of emergencies through guidance and control activities; |
- | is organized defense against fire for all work places; |
- | is organized the intervention of firefighting jobs; |
- | is organized the rescue and evacuation of Employees property; |
- | Private service for Emergency Situations is set (Ro. S.P.S.U.), in accordance with the law; |
- | are identified, monitored and evaluated specific risk factors, generators of hazardous events; are identified types of risks generating natural and technological disasters; is provided assessment and analysis of potential risks on the possibility of their occurrence and consequences on people's lives, the environment and property; |
- | is established the Cell for Emergency Situations. |
- | are provided information and training activities on the means of knowledge, compliance and enforcement of the norms, of the technical regulations and provisions concerning fire safety and civil protection for all company personnel; |
- | Is ensured the organization of training of Employees emergency bands within SPSU in emergency situations; participation in exercises and applications alarm, evacuation, intervention, limitation and elimination of consequences of fires or other disasters. |
From the point of view of the obligations and responsibilities arising from Law no. 59/2016 on the control of major accident hazards involving dangerous substances are provided prevention/action measures by performance/compliance with the applicable legal requirements:
- | are established and provided measures to prevent major accidents involving dangerous substances and limit their consequences on human health and the environment; |
- | are developed "Safety Reports" and "internal emergency plans" for each location of the company classified as "upper-tier" or "prevention policy" for locations classified as "lower-tier"; |
- | the staff employed in these locations is periodically trained on the relevant parts of that documentation; |
- | at the site level a responsible in charge with security management was appointed, by decision of the Director General. |
In order to maintain and continuously improve the safety and health of workers in every aspect related to work, CONPET SA has developed and established the following plan on short, medium and long term:
1. Achievement of all necessary lines regarding Safety and Health at Work contained in the Plan of Prevention and Protection and in the Programs of measures resulting from checks/internal and external audits.
2. Permanent compliance with OSH legislation and other requirements/regulations to which the company subscribes, by implementing innovations in the field.
3. Creating an OHS culture through training and raising awareness of employees about the need to respect the rules of safety and health at work by:
- | the use of interactive teaching methods, accompanied by practical demonstrations; |
- | empowering all staff in identifying, reporting and eliminating/reducing the dangers of accidents and professional diseases; |
- | support and promote preventive thinking and behavior; |
- | involving all staff in adopting measures to continuously improve the working environment. |
4. Continuous improvement of occupational health and safety by:
- | eliminating/reducing ongoing risks of accidents and occupational diseases; |
- | conclusion of an occupational medicine contract with a specialized clinic; |
- | integrating new employees in all the prevention and protection actions specific to the workplace; |
- | developing programs to educate employees on occupational health, by adopting a healthy lifestyle; |
- | improving internal communication and consultation on issues of safety and health at work; |
- | implementation of thematic programs of information on health and safety risks, use of modern methods, efficient and effective training. |
Energy Policy
The Energy policy of CONPET SA promotes the objectives of continuous improvement of energy performance by maintaining and improving the energy management system, by ensuring compliance with the egal provisions and other applicable requirements in terms of energy consumption and energy efficiency, minimizing the loss of electricity and fuel for the production of heat energy, motor vehicles and rail maneuvering on CF ramps, energy cost reduction, purchase and use of energy-efficient products and services.
The company carries out actions to raise staff awareness and improve communication in order to ensure active participation in the achievement of the energy goals and targets. In order to achieve the goals of this policy, the company is fully committed to maintaining and improving the energy management system in accordance with the provisions of the ISO 2011 standard.
The certification body BUREAU VERITAS issued certificates for management systems implemented in CONPET S.A. according to the requirements of ISO 50001 standards, following the external re-certification audit in September 2022.
Railway Safety Policy
Starting 2010, within CONPET S.A. the Railway safety management system is implemented and maintained. The scope of this system includes the railway ramps where CONPET performs railway shunting operations.
Through the railway safety policy of CONPET S.A. the company declares its will and firm commitment to maintain and improve a railway safety management system according to the requirements established by the national and European Union regulations.
The main directions for action are:
- | Compliance with existing legal requirements and other relevant stakeholder requirements relating to the development of railway shunting operations; |
- | Ensuring the appropriate organizational framework for setting objectives and assessing the performance of the safety management system; |
- | Identification of hazards, assessment and evaluation of risks associated with railway operations, including those arising from external factors; |
- | Establishing appropriate safety measures to be implemented to mitigate these risks, with a view to preventing accidents/incidents by rail and cooperate with relevant stakeholders on the implementation of appropriate safety measures in case of common risk identification; |
- | Assuming the coordination of the safety management system activities at the level of the management and delegation of responsibilities within the organization; |
- | Provision of programs to train staff and maintain their competence in performing tasks, both for staff in charge of management, training and control tasks and for staff performing railway safety-related activities. |
The Romanian Railway Authority (RRA) (Ro. AFER) granted the company the license for carrying rail services (railway shunting) and Unique Safety Certificate for the railway safety management system implemented in CONPET S.A.
Social and Personnel Policy
The company’s management develops and implements internal regulations used to establish the organization of the activity within the company by which the necessary resources are allocated effectively. The risks associated to the social and personnel field are identified and their potential adverse effects are kept to an acceptable level through appropriate measures for cancellation or mitigation.
The legal requirements in the HR and OHS areas at the level of the company are also complied with by the implementation and certification of the integrated management system. In addition, certain requirements are included in the Internal Regulations and the Code of Ethics.
Competent, motivated and honest employees represent the essential element for the successful completion of the company’s goals, being the most important resource for the proper conduct of the business.
The main actions taken with respect to these issues are materialized by:
- | the provision of optimal work conditions; |
- | transparent processes for recruitment based on professional competence and experience; |
- | promotion of employees that behave ethically and have proved integrity; |
- | assessment of professional performance based on professional and personal skills criteria; |
- | allocation of sufficient resources for the training and continuous improvement of the staff; |
- | health care (regular medical checks and assessments, monitoring the health status of the employees, insurance contracts for medical services for the benefit of the employees); |
- | providing additional wage benefits in the form of voluntary health insurance, as regulated in art. 221 Para.9 of the Collective Labor Agreement, the ultimate goal being to prevent loss of working capacity of employees; |
- | social facilities provided for in the Collective Labor Agreement (meal vouchers, covering part of the cost of tickets for rest and treatment, financial support to the employees and, in exceptional circumstances, to the members of their families (husband, wife, children supported by them), who have special medical problems, as well as to the employees who suffered significant damage from earthquakes, landslides or floods or other natural phenomena, fires, etc.); |
- | supporting trade union activity, communication and ongoing consultation with the trade union organization. |
The main potential risks in the social and staff field relate to:
- | high personnel fluctuation, decreased rate of retention of newly hired personnel or occupying key positions; |
- | insufficient financial resources allocated for maintaining and improving working conditions or for preventive medical actions and measures; |
- | constraints and budget limitations that can restrict the initiation/development of projects in the field of human resources; |
- | improperly managed communication; |
- | lack of qualified personnel in order to ensure the continuity of certain activities (e.g. staff with responsibilities in traffic safety) in the case of departures from the system. |
The effects of these potential risks may consist in the increase of the medical leave expenses incurred by the company, increased absenteeism, decreased quality of the transport services, decreased efficiency, increased recruitment costs, adverse incentive of the employees or trade union conflicts. The company has managed, through the measures taken, to maintain the social and staff risks at a low level.
To manage the risks in this field, the company has taken the necessary measures to ensure the security and protection of the employees’ health, to prevent occupational risks, to inform and train the of employees and to ensure the organizational framework and the necessary means for occupational health and safety, including for specific risk-sensitive groups.
Therefore, in-house instructions have been developed for the application of the regulations concerning the safety and health at work, taking account of the particularities of the activities and of the jobs in the company. Furthermore, labor protection measures have been taken, specific for certain occupations or activities.
In drawing up the measures for the safety and health at work, the company’s management shall consult with the Trade Union or, as appropriate, with the representatives of the employees and with the Occupational Health and Safety Committee.
The staff is informed and trained about the risks to the safety and health of the employees and to the protection and prevention measures specific to the workplace.
In terms of gender equality, each employee of the company is free to develop their own skills and to express their choices without being influenced by the peculiarities of their gender.
The different behaviors, aspirations and needs of women and men enjoy equal appreciation and promotion within CONPET S.A.
The Internal Regulations of the company include provision for the prohibition of all forms of discrimination.
From the total number of personnel with higher education, 14.42% is represented by women. At the same time, women represent a percentage of 37.76 % from the total personnel with management and/or coordination positions in the company, significantly higher than the previous year (37.41%). Achieving this weight ensures women's participation in decision-making and management at all levels and in key areas of activity of the company.
Thus, according to the organization chart in force at 31.12.2022, the entities Deputy Director General, Deputy Director General 2, Economic Directorate and Maintenance Development Chief Engineer are led by women. Promoting equality at work is synonymous with significant economic benefits.
By eliminating all forms of discrimination within the company, women are free in the choice of their occupation upon their employment on any vacant job and at all levels of the professional hierarchy. This creates non-discriminatory conditions for career advancement, for work remuneration in relation to the professional skills and the quality of the work carried out and for the participation in professional qualification/re-qualification, improvement and specialization programs.
The company guarantees for all employees, regardless of sex, the application of the principle of equal pay and the right to other benefits paid by the employer to employees, directly or indirectly, in cash or in kind, according to their place of employment.
The Conventions of the International Labor Organization (ILO), considered as fundamental labor principles and rights, relate to trade union freedom and trade union right protection, the effective recognition of the right of collective organization and bargaining, the elimination of all forms of forced or compulsory labor, the abolition of child labor and the elimination of discrimination in respect of employment and occupation, and represent guidelines and useful tools for the preparation of the internal policies of the company concerning employment, work, social dialogue, etc.
The company informs employees consistently and permanently on the provisions of the Collective Labor Agreement, the Code of Ethics and Integrity and the Internal Regulations, a document containing special chapters on the rights they have in connection with the compliance with the equality of opportunities and treatment between men and women in labor relations.
Trade union freedom and collective bargaining ensures a good cooperation and consultation between the workers and the employer, leading to a decrease in the number of labor conflicts and a higher social stability.
The employees of CONPET SA receive adequate protection against any discriminatory acts that might infringe trade union freedom.
The practice of collective bargaining in CONPET SA guarantees that the worker and the employer have an equal share in the negotiations and that the decisions made will be fair and equitable. Starting from the premise that social dialog is an important factor for socio-economic progress, considered as one of the pillars of the European social model, essential for: the promotion of decent working conditions, transparent regulations regarding working rules, respect for employees and performance, productivity and profit for employers, collective bargaining has allowed the social partners to negotiate a fair employment relationship and to prevent labor disputes.
The activities and actions for entertainment and networking for employees have been conducted between the trade union and employees, between the employees and family members, activities in partnership with public educational institutions, culture, various events at which personalities have been invited, etc.
CONPET SA promotes a transparent business climate, communication and cooperation with all the parties involved in the conduct of its business, with respect for the community and the environment. CONPET S.A. supported, through sponsorship actions, projects of tradition or with significant impact on the community, but also request of less amplitude targeting ideas, actions or individual performance.
Ethics and Integrity in Business, fighting corruption
CONPET SA promotes fair business relationships and pursues legal compliance in all commercial transactions and activities carried out, acting for the deterrence, prevention and combating of corruption deeds.
By the Code of Ethics and Integrity the company has established the rules of conduct and integrity, which regulate the values and principles of anti-corruption strategy, corporate values, responsibilities, obligations and business conduct, mandatory rules, applicable to all employees, from all organizational structures of CONPET S.A.
The Code of Ethics and Integrity defines honest conduct and behavior, prohibits participation of employees in decision-making process in situations where there is a conflict of interest, imposes restrictions in terms of offering/accepting gifts, favors or services, establishes the obligations of the employees with regard to the protection of the company’s assets and resources, specifies how to relate with the authorities based on the principles of fairness, transparency and good collaboration and mentions the rules of conduct during national and international trips. There are also clear rules for dealing with shareholders regarding equal treatment and inside information, as well as the use of honest and legal practices in relations with business partners.
In order to implement the National Anti-corruption Strategy 2021 - 2025 (Ro. S.N.A.), during 2022 were adopted and disseminated through various means of communication (e-mail, publication on the company's website and the internal network info/conpet): The declaration on assuming the organizational integrity agenda in the coordinates of the National Anti-corruption Strategy 2021 – 2025 and the Integrity Plan of CONPET S.A., annex to the Decision of the Director General of CONPET S.A. detailing, in a personalized manner, the measures applicable to CONPET S.A., subsumed to the general and specific objectives stipulated in the National Anti-corruption Strategy.
The regular staff awareness activity had an amplitude within the company in the field of integrity, through the actions undertaken during 2022 in relation to the internal/external training of the staff on:
the provisions of GD 1269/2021 on the approval of the National Anti-corruption Strategy 2021-2025 and the documents related thereof. A large part of the company’s management staff has been trained, the topic being: ethics, integrity, conflicts of interest and incompatibilities, the system of reporting irregularities, practical measures for the implementation of national anti-corruption strategies in a public entity, the integrity plan, practical aspects regarding the implementation of institutional transparency and corruption prevention measures, specific aspects of the implementation of the provisions of GD no. 599/2018, specific aspects regarding the implementation of prevention measures in certain situations; | |
- | the provisions on the rules on conflicts of interest and incompatibilities, the provisions of the Criminal Code on some corruption acts, the provisions of the Code of Ethics and Integrity of Conpet S.A. (approved at the Board of Directors meeting on 22.09.2022), the provisions on gifts/goods received free of charge within protocol actions, the provisions on declarations of assets and interests; |
- | provisions of operational procedures and other internal information materials related to anti-bribery, conflicts of interest and incompatibilities, prevention of pantouflage, integrity warnings. |
Following the training on conflict-of-interest rules and incompatibilities, in 2022, there was also an assessment/verification of the knowledge acquired by the management staff and TESA. Consequently, the awareness and anti - corruption education program in what concerns the internal norms in terms of conflict of interests and the incompatibilities, which took place during 09.10.2022 - 23.12.2022 materialized in higher results from our employees, respectively:
- | 99.34% of the total TESA personnel were instructed when the program was initiated; |
- | the level of knowledge of the rules on conflicts of interest and incompatibilities is 100%. (number of employees who have obtained the rating VERY WELL and WELL / number of employees tested *100) |
The measures provided for in the integrity Plan adopted at the level of 2022, in connection with the development of programs/training sessions, internal training and awareness in the field of anti-corruption education have been fully implemented. Organization of the training program assumes that, if a company provides the efficient functioning of promoting an ethical and upright behavior, causing a change in attitudes among its personnel, then this system may limit internal conflicts, theft of company assets and fraud, use of the company resources in purposes other than those for which they are provided, using its image in the personal benefit of employees or sabotaging the interests of the company by misconduct of employees in relation to customers or business partners or corruption etc. The functioning of such a system contributes to the strengthening of the internal integrity system and the employee's sense of security, to his identification with the company's values, and therefore to a higher performance of the company.
As per GEO no. 109 dated November 30, 2011 on the corporate governance of public enterprises, further amendments and additions and within the Program for the development of the internal control management system, elaborated in compliance with the O.S.G.G. no. 600/2018, considering the necessity of building an integrity culture inside CONPET S.A., has been revised and approved by the Board of Directors (in the meeting dated 22.09.2022), the Code of Ethics and Integrity (prepared and approved in the meeting dated 22.05.2021).
The company was not notified about integrity incidents related to the conflict of interest regime or incompatibilities whose resolution was made as a result of the final remaining of an act of finding issued by A.N.I.
The Anti-Bribery Policy
For CONPET S.A., doing business and process deployment by the observance of the highest standards of ethics and integrity stands for a constant preoccupation.
Acting as an operator of the crude oil, rich gas, condensate and ethane national transport system, CONPET S.A. acceded to the anti-bribery national strategy and implemented proper integrity plans.
By the anti-bribery policy, CONPET S.A. commits not to tolerate any bribery act, not to manifest any type of sanction or retaliation against any relevant employee or third party for the refuse to be part of a bribery act and to observe the anti-bribery legislation applicable to the organization.
Following the external audit carried out in July 2022, the SRAC CERT certification body certified the anti-bribery management system implemented in CONPET S.A. organization in accordance with the requirements of ISO 37001.
Issues related to the Diversity Policy in terms of Administrative and Managerial Bodies
CONPET SA is a company listed on the Bucharest Stock Exchange and, according to the capital market legislation, the decision for the appointment of the members of the Board of Directors belongs to the shareholders. For this reason the company is not in a position where it can influence issues of diversity and could not adopt a policy on diversity in terms of administrative and management bodies.
However, the proposals for candidates and the result of the vote in elections have provided each time an appropriate degree of diversity in terms of profile of administrators, coverage of professional expertise areas or age thereof.
On December 31, 2022 the Board of Directors consisted of five male and two female persons with professional experience in economics, engineering and law.
The proposal for the distribution of the net accounting profit and the fund for the participation of employees in profit for the financial year 2022
Along 2022, there have not been distributed dividends based on the interim financial statements.
The net accounting profit amounts to 61,663,616 Ron.
The proposal for the distribution of the net accounting profit by legal destinations, to which the provision for the participation of employees in profit in the amount of 6,387,655 Ron was added, resulting in a total amount to be distributed of 68,051,271 Ron, is as follows:
Crt. No. | Element | Amount (RON) | Provisions of GD no. 64/2001 |
1 | The net profit of the financial year 2022, reported based on the audited annual financial statements | 61,663,616 |
|
2 | Employees profit sharing schemes within the limit of 10% of the net profit but not more than the monthly average base salary achieved at the level of the economic operator reported in the Reference year | 6,387,655 |
|
3 | Total profit to be distributed (1+2): | 68,051,271 |
|
a | Other allocations stipulated by law (account 1068) - Reinvested profit exempt from corporate tax pursuant to Article 22 of Law no. 227/2015 on the tax code | 3,152,695 | Art. 1, Para (1), Letter b) |
b | Employees share of profit within the limit of 10% of the net profit but not more than the monthly average base salary achieved at the level of the economic operator reported in the Reference year | 6,387,655 | Art. 1, Para (1), Letter e) |
c | Dividends due to shareholders | 58,510,921 | Art. 1, Para (1), Letter f) |
Table 38 Proposal for the allocation of net profit for the year 2022
Also, the retained earnings that can be distributed, in the amount of 2,598,431 Ron, are proposed to be distributed to cover actuarial losses resulting from the operation of updating the benefits granted at retirement, recognized in the global result, and the remaining difference to be distributed in the form of dividends. The statement of retained earnings distributable and its distribution shall be as follows:
Crt. No. | Destination | Amount (RON) |
1.1. | The retained earnings representing surplus achieved out of revaluation reserves | 1,258,474 |
1.2. | Retained earnings coming from the adoption for the first time of IAS 29 - achieved earnings | 1,339,957 |
1 | Total retained earnings to be distributed, distributed for: | 2,598,431 |
a | Actuarial loss from discounted benefits granted upon retirement | 1,599,191 |
b | Dividends due to shareholders | 999,240 |
Table 39 Proposal for the distribution of retained earnings
CHAIRMAN OF THE BOARD OF DIRECTORS
Gheorghe Cristian - Florin
Director General
Eng. TUDORA Dorin
Deputy Director General
Legal expert DUMITRACHE Mihaela - Anamaria
Economic Director
1) | The Articles of Incorporation in force, updated at the date of 28.04.2022; |
2) | C.V.’s of the current administrators; |
3) | Objectives and financial and non-financial key performance indicators for Directors with mandate contracts achieved between 01.01.2022 - 31.12.2022; |
4) | Report on the internal control management system at 31.12.2022; |
5) | List of the important contracts concluded by the company in 2022; |
6) | List of litigations at 15.03.2023. |
Annex no. 6
List of litigations on 15.03.2023
a) The list of files pending before Courts on 15.03.2023 in which the company CONPET S.A. has the status of claimant
1. File no. 19024/281/2009 - Ploiești Courthouse
Parties: Conpet S.A. - claimant
Compania de Transport Feroviar S.A. - Defendant
Subject matter: Conpet filed a lawsuit requesting the defendant to pay the amount of RON 50,511.6 representing the difference in payment from the value of the repair of the engine of the LDH 70-675 locomotive in the amount of RON 60,381.60, as well as the legal expenses.
Clarifications: By the Conclusion of 02.09.2011, the court suspended the case pursuant to art. 36 of Law 85/2006.
Procedural status of the case: Merits - Suspended
The file no. 31627/3/2011 is pending before the Bucharest Court, having as its subject matter the insolvency procedure of the debtor Compania de Transport Feroviar S.A. through Judicial Administrator Pro Management Insolv I.P.U.R.L. Bucharest. As a creditor, Conpet is listed on the final list of creditors with the requested unsecured debt in the amount of RON 52,769.02 which, broken down, consists of: RON 50,511.6 in compensation and RON 2,257.42 representing the judicial stamp duty paid by Conpet in the claim file no. 19024/281/2009 of the Ploiești Courthouse. The case has a trial date of 24.03.2023.
Deadline: --
2. File no. 3033/105/2012 - Prahova Court
Parties: Conpet SA - creditor
Vasrep Petro Construct SRL - debtor
Subject matter: Bankruptcy. By the Sentence no. 238/03.03.2014 the Prahova Court ordered the entry in the bankruptcy procedure of the debtor Vasrep Petro Construct SRL, the sealing of the assets from the debtor's fortune and the fulfillment of the other liquidation operations.
Conpet SA formulates a request for admission of the claim requesting the registration on the list of creditors Vasrep Petro Construct SRL with the amount of RON 126,877, including VAT, representing the value of material costs, costs for workmanship and equipment necessary for bringing the pipeline to the state before the unlawful act was committed by the debtor, deed consisting in the unlawful destruction and theft of two sections of 4,120 ml in length from the pipeline Ø 10¾" Iancu Jianu - Ghercești. Conpet appeals against the measure of non-registration of Conpet SA on the Preliminary List with this claim, which is the subject matter of file no. 3033/105/2012/a1. By the Sentence no. 1958/19.11.2012, the Prahova Court dismissed Conpet's appeal, Conpet appealed again; the Ploiești Court of Appeal allowed the appeal, quashed the sentence on the merits and sent it for retrial.
By the sentence no. 1008/17.09.2014 (file no. 3033/105/2012/a1 *) the Prahova Court admits the appeal to the preliminary title. It orders the registration of the appellant creditor Conpet S.A. in the consolidated list of creditors of the debtor with the amount of RON 1,473,628 the value of materials, workmanship and equipment as well as RON 120 judicial stamp duty appeal and RON 2500 expert fee. Vasrep appealed.
By decision no. 141 / 15.01.2015 The Ploiești Court of Appeal rejects the appeal as unfounded.
Conpet is registered in the consolidated list of creditors of the debtor Vasrep Petro Construct S.R.L. with an unsecured debt in the amount of RON 1,476,308.
Procedural status of the case: Merits
Deadline: 24.04.2023
3. File no. 2803/120/2013/a42 - Ploiesti Court of Appeal
Parties: Conpet S.A. - creditor
Ecprod S.R.L. - debtor
Subject matter: Insolvency. General procedure
Request for credit admission. Conpet S.A. filed a request for admission of claim on the assets of the Ecprod debtor in the amount of RON 25,728.89. Conpet is registered on the List of Creditors with the amount of RON 25,728.89. The percentage of the Conpet claim is 0.16% of the total claims entered on the table.
Clarifications: The court suspended the trial until the resolution of the case in file 2803/120/2013/a49, with appeal for the entire duration of the suspension.
Procedural status of the case: Merits - Suspended
Deadline: --
4. File no. 7932/118/2013 * - Constanța Court
Parties: Conpet SA - civil party
Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Luca Viorel, Meridicos Romeo Ovidiu, Dimofte Petronel, Matei Marius Ionut, Ahălanei Ioan - defendants
Romeo International Service Company SRL Năvodari - defendant
Romeo International Service Company SRL Năvodari represented by Nicolaidis Constantin - defendant
Ministry of Public Finance - ANAF - civil party
DGFP - civil party
Subject matter: Tax evasion offenses (Law 87/1994, Law 241/2005), art. 323 of the Criminal Code, Grand larceny (art. 208-209 of the Criminal Code). Conpet SA became a civil party for the amount of RON 928,785.94 representing the value of the amount of stolen crude oil (277 tons), pipeline remediation works and laboratory analyzes.
Clarifications: By the sentence no. 472/17.12.2015 the Constanța Court admits the civil action filed by the civil party Conpet SA. Ploieşti. It obliges jointly and severally the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Ahalana Ioan, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Merdicos Romeo Ovidiu, Dimofte Petronel, Luca Viorel and Matei Marius Ionut to pay to the civil party Conpet SA. the amount of RON 90,814.50 (the equivalent of 30 tons of crude oil stolen on 27.05.2013). It obliges jointly and severally the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Ahalana Ioan, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Merdicos Romeo Ovidiu, Dimofte Petronel, Luca Viorel and Matei Marius Ionut to pay to the civil party Conpet SA. the amount of RON 93,841.65(the equivalent of 31 tons of crude oil stolen on 31.05.2013). It obliges jointly and severally the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Ahalana Ioan, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Merdicos Romeo Ovidiu, Dimofte Petronel, Luca Viorel and Matei Marius Ionut to pay to the civil party Conpet SA. the amount of RON 111,027.27 (the equivalent of 36 tons of crude oil stolen on 03.06.2013). It obliges jointly and severally the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Ahalana Ioan, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Merdicos Romeo Ovidiu, Dimofte Petronel, Luca Viorel and Matei Marius Ionut to pay to the civil party Conpet SA. the amount of RON 585,977.25 (the equivalent of 190 tons of crude oil stolen on 04.06.2013 and 05.06.2013). It obliges jointly and severally the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Ahalana Ioan, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Merdicos Romeo Ovidiu, Dimofte Petronel, Luca Viorel and Matei Marius Ionut to pay to the civil party Conpet SA. the amount of RON 17,289.32 representing the value of the decommissioning works of the artisanal installation and for bringing the pipeline to its initial state. It obliges jointly and severally the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Ahalana Ioan, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Merdicos Romeo Ovidiu, Dimofte Petronel, Luca Viorel and Matei Marius Ionut to pay to the civil party Conpet SA. the amount of RON 9,576.84 representing the equivalent of laboratory analyzes, for 17 samples of petroleum product. Note that the civil party Conpet SA. waived the civil claims in the amount of RON 20,268.11 for the deed of 03.08.2013 because the damage was fully recovered. The decision was appealed by the defendants.
By decision no. 675/10.06.2016 the Constanța Court of Appeal admits the appeals made by the Prosecutor's Office attached to the Constanta Court and by the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Arhire Adrian, Poenaru Marius Ciprian, Boamfă Paul, Luca Viorel, Meridicos Romeo Ovidiu, Dimofte Petronel, Matei Marius Ionut, Ahălanei Ioan and SC Romeo International Service Company SRL Năvodari. It abolishes in full the criminal sentence no. 472/17.12.2015 pronounced by the Constanța Court in file no. 7932/118/2013 and orders the case to be sent for retrial to the Constanța Court. Here it receives * and orders the case to be sent to the judge of the preliminary chamber (7932/118/2013*/a1).
By the Conclusion no. 93/28.02.2017 the Constanța Court rejects as unfounded the requests and exceptions formulated by the defendants Bivolaru Gabriel, Chihaia Marin, Merdicos Romeo Ovidiu, Arhire Adrian and Mangalea Gheorghe. It finds the legality of notifying the court with Indictment no. 569/P/2013 of 30.08.2013 issued by the Prosecutor's Office attached to the Constanţa Court of Appeal, which ordered the prosecution of the defendants. It ascertains the legality of the administration of the evidence and of the execution of the criminal investigation acts. It orders the commencement of the trial of the case. The conclusion was contested, rejected by CA Constanța.
Also, by the Conclusion of 28.02.2017, the Constanța Court finds the plea of non-compliance with the constitution admissible. It notifies the Constitutional Court with the settlement of the plea of non-compliance with the constitution invoked by the defendant Bivolaru Gabriel, in the file no. 7932/118/2013 * of the Constanţa Court, regarding the constitutional challenge of art. 280 para.1, art. 281 paragraph 1 and art. 282 paragraphs 1 and 2 of the Code of Criminal Procedure - file no. 812D/2017. The plea was rejected as unfounded.
By the Conclusion of 25.05.2022, the Constanța Court rejects as unfounded the requests made by: - the defendant Bivolaru Gabriel, to change the legal classification of the facts from the crime of complicity in grand larceny with particularly serious consequences, in continued form, provided for and punished by the article 26 of the Criminal Code, referred to in the art. 208 paragraph 1 - 209 paragraph 1 letter a, e, g, paragraph 3 letter a and para. 4 of the Criminal Code with the application of the art. 41 paragraph 2 of the Criminal Code, in the crime of concealment, provided for in the art. 221 of the previous Criminal Code or art. 270 of the new Criminal Code with application of the art. 5 of the Criminal Code, and from the crime apprehended under the form of authorization, of continued tax evasion, provided for and punished by the art. 9 letter b from Law no. 241/2005 republished Art. 41 paragraph 2 of the Criminal Code, in complicity in the tax evasion offense in continued form, provided for in the art. 48 of the Criminal Code referred to in the art. 9 letter b from Law no. 241/2005 republished Art. 41 paragraph 2 of the Criminal Code carried out by S.C. Romeco International Service Company S.R.L. Navodari - the defendant Poenaru Marius Ciprian, from the crime of complicity in grand larceny, provided for in the art. 26 of the Criminal Code referred to in the art. 208 para. 1 - 209 para. 1 letters a, e, g and para. 3 letter of the Criminal Code, in the crime of concealment, provided for in the art. 221 para. 1 of the Criminal Code. - defendants Arhire Adrian from the crime of grand larceny in the continued form, provided for and punished by the art. 208 paragraph 1 - 209 paragraph 1 letter a, e, g, paragraph 3 letter a with the application of Art. 41 para. 2 of the Criminal Code, Boamfă Paul from the crime of grand larceny in the continued form, provided for and punished by the art. 208 paragraph 1 - 209 paragraph 1 letter a, e, g, paragraph 3 letter a of the Criminal Code with application of the Art. 41 para. 2 of the Criminal Code, Luca Viorel from the crime of complicity in grand larceny in the continued form, provided for and punished by the art. 26 of the Criminal Code, referred to in the art. 208 paragraph 1 - 209 paragraph 1 letter a, e, g, paragraph 3 letter a of the Criminal Code with application of the Art. 41 para. 2 of the Criminal Code, and Matei Marius Ionuţ from the crime of complicity in grand larceny in the continued form, provided for and punished by the art. 26 of the Criminal Code, referred to in the art. 208 paragraph 1 - 209 paragraph 1 letter a, e, g, paragraph 3 letter a of the Criminal Code with application of the Art. 41 para. 2 of the Criminal Code, detained in their charge, in the crime of concealment, provided for in the art. 221 of the Criminal Code. With appeal together with the merits of the case.
Procedural stage: Merits- retrial
Deadline: 21.03.2023
5. File no. 1862/114/2014 - Buzău Court
Parties: Conpet SA - creditor
Geluval Stor SRL - debtor
Subject matter: By the Sentence no. 621/26.10.2016, the Buzău Court orders the entry into the general bankruptcy procedure of the debtor, the sealing of all the assets from the debtor's property, their inventory and the fulfillment of the other liquidation operations. Conpet SA formulates a request for admission of the claim requesting the registration on the list of creditors of Geluval Stor SRL with the amount of RON 1,440.90, representing delay penalties due for payment over the term provided in the contract for a value of 7 invoices issued by Conpet for services provided in under Contract no. STA 101/20.03.2012 concluded with the defendant, amount to which the debtor was obliged by the sentence no. 8867 / 16.06.2014 given by the Ploiești Court in the file no. 109/281/21014, remained final by non-appeal.
Conpet is registered in the consolidated list of creditors in the bankruptcy procedure for the debtor Geluval Stor S.R.L. with an unsecured debt in the amount of RON 1,440.90.
Procedural status of the case: Merits
Deadline: 27.04.2022
6. File no. 1510/262/2014 - Moreni Courthouse
Parties: Conpet SA - claimant
Pîrvu Gheorghe - defendant
Pîrvu Nicolae - defendant
Grigorescu Gabriel - defendant
Zlăteanu Dragoș Marian - defendant
Dărmănești Commune, legally represented by the Mayor of Dărmănești Commune - defendant
SC Nimb Dâmbovița SA - defendant
Subject matter: Conpet filed a lawsuit requesting the court to order the defendants, jointly and severally, to pay to Conpet the amount of RON 34,944.18 as civil damages - representing the equivalent of remedial works of the Link 14 fiber optic pipeline and cable, destroyed on 03.06.2011, within the commune of Dărmănești, Dâmbovița county, works necessary to bring them to the initial state before committing the deed, i.e. in working order, amount to which is added the interest from the date on which the sentence in the present case becomes final and until the date of actual payment; payment of the legal expenses.
Clarifications: By the Conclusion of 08.01.2015, the Moreni Courthouse suspends the trial of the case in relation to the defendant SC Nimb Dambovita SA. It dismisses the case regarding the other defendants and the formation of a new file (184/262/2015 - finalized by obliging the defendants Pârvu Gheorghe, Pârvu Nicolae, Grigorescu Gabriel and Zlăteanu Dragoș Marian to pay to Conpet the amount of RON 34,944.18 and the related interests of this amount, starting with the date of finality of the Sentence no. 97 / 04.02.2016 and until the date of actual payment. The decision was executed and is the subject of the file No. 30/2018 – Bailiff’s Office Petrov Sergiu Alexandru).
Note: By the Conclusion of 14.12.2012 - file no. 9446/120/2012 - the Dâmbovița Court ordered the opening of the general insolvency procedure against the debtor Nimb Dâmbovița SA. By the Sentence no. 611 / 09.10.2014 The Dâmbovița Court orders the opening of the general procedure of judicial reorganization and the confirmation of the reorganization plan. The reorganization procedure is ongoing.
By the Conclusion of 22.06.2017 pronounced in the file no. 1510/262/2014 the Moreni Courthouse, finding that the law applicable to the insolvency proceedings of the defendant SC Nimb Dambovita SA is Law no. 85/2006 and that the suspension will last until the closing of the insolvency procedure pronounced by the syndic judge based on art. 11 para. 1 letter n of Law no. 85/2006, maintains the suspension of the trial of the case ordered by the Conclusion of 08.01.2015.
Procedural status of the case: Merits - Suspended
Deadline: --
7. File no. 6819/118/2013 - Constanța Court
Parties: Conpet SA - creditor
Tobias SRL - debtor
Subject matter: Bankruptcy. Conpet S.A. requested the registration on the list of creditors of the debtor with the amount of RON 663 representing the equivalent value of 230 kg of aluminum (RON 575) and 110 kg of scrap metal (RON 88), handed over to Tobias SRL on 04.06.2013, based on the contract of sale - purchase of waste no. 2013 / ADM / 15.02.2013 concluded between Conpet and Tobias.
The request formulated by Conpet was admitted in part by the judicial administrator, in the sense that our company was registered on the list of creditors with the amount of RON 643.11, the difference of RON 19.89 representing the 3% environmental fund and due to the Environmental Fund Administration.
The percentage of the Conpet receivable is 0.014% of the total of receivables entered in the list.
Procedural status of the case: Merits
Deadline: 04.05.2023
8. File no. 717/105/2015 - Prahova Court
Parties: Conpet SA - creditor
Footbal Club Petrolul Ploiești SA - debtor
Subject matter: Bankruptcy. Conpet filed a request for admission of the claim by which it requested the registration on the list of creditors of the debtor Fotbal Club Petrolul Ploiești SA with a claim in the amount of RON 14,465.33. Conpet was registered on the list of receivables of the debtor's creditors with the requested amount.
Clarifications: By the sentence no. 821 / 22.06.2016 The Prahova Court admits the request of the judicial administrator. It approves the conclusions of the judicial administrator's report. It orders the beginning of the general procedure of the debtor's bankruptcy. It orders the dissolution of the debtor company and the lifting of the debtor's right of administration. It orders the sealing of the debtor's assets and the fulfillment of the other liquidation operations.
Procedural status of the case: Merits
Deadline: 04.04.2023
9. File no. 13386/3/2015 - Bucharest Court
Parties: Conpet SA - creditor
Perfect Metal SRL - debtor
Subject matter: Bankruptcy. Conpet S.A. requested the registration on the list of creditors of the debtor with the amount of RON 221,189.85 representing penalties for delay, compensations, interest and legal expenses.
The request was accepted but Conpet was entered on the list in the category of unsecured creditors and not in the category of secured creditors as would have been the case considering the content of our request for registration in the preliminary list of creditors. Conpet filed an appeal against the preliminary list of creditors, which was the subject matter of the file no. 13386/3/201 / a1 with a deadline on 18.09.2015. By the Decision no. 7106 / 18.09.2015 The Bucharest Court rejects the appeal as unfounded. The percentage of the Conpet receivable is 0.42625 of the total receivables entered on the list.
Procedural status of the case: Merits
Deadline: 24.03.2023
10. File no. 19602/3/2015 - Bucharest Court
Parties: Conpet SA - creditor
Top Birotica SRL - debtor
Subject matter: Bankruptcy. Conpet S.A. requested the registration on the list of creditors of the debtor with the amount of RON 2,258.72 representing delay penalties due for the delayed delivery of the equipment that was the object of the contract P-CA 438 / 17.11.2014.
Conpet was registered at the debtor's list of creditors with the amount of RON 2,258.72.
The percentage of the Conpet receivable is 0.010% of the total receivables entered on the list.
Clarifications: By the Decision of 14.12.2022, the Bucharest Court rejects the request of the judicial liquidator for the sale of the assets remaining in the debtor TOP BIROTICA SRL's patrimony, by public auction, according to the Code of Civil Procedure. With the right of appeal within 7 days of communication.
Procedural status of the case: Merits
Deadline: 22.03.2023
11. File no. 2899/62/2015 - Brașov Court
Parties: Conpet SA - creditor
Condmag SA - debtor
Subject matter: Bankruptcy. Request for admission of the Conpet claim against the property of the debtor Condmag SA – RON 42,950.85 representing penalties.
Conpet was registered on the list of creditors with the amount of RON 42,2950.85 representing an unsecured debt.
The percentage of the Conpet receivable is 0.02% of the total receivables entered on the list.
Procedural status of the case: Merits
Deadline: 30.05.2023
12. File no. 8156/281/2014 * - Ploiești Courthouse
On appeal: file no. 447/42/2020
Parties: Conpet SA - civil party
Matei Marinel - claimant for judicial review
Subject matter: Grand larceny. Revision. Matei Marinel formulates a request for revision of the criminal decision no. 1383 / 14.10.2013 pronounced by the Ploiești Court of Appeal in the file no. 19230/281/2011.
Note: By the Criminal Decision no. 1383 / 14.10.2013 Ioniță Ion, Marin Matei Georgian and Matei Marinel were obliged to pay to Conpet an amount of RON 13,259.79. The decision was enforced and is the subject of file no. 200/2016 located at the Bailiff’s Office Petrov Sergiu Alexandru.
Clarifications: By Sentence no. 1162 / 03.08.2020 The Ploiești Courthouse admits the request for revision formulated by the claimant for judicial review Matei Marinel, against the criminal sentence no. 1286 / 07.06.2013 of the Ploieşti Courthouse, abolished and finalized by the criminal decision no. 1383 / 14.10.2013 of the Ploieşti Court of Appeal. It cancels the criminal sentence no. 1286 / 07.06.2013 of the Ploieşti Courthouse, as well as MEPI no. 1538/2013 of 10/15/2013 issued by the Ploiești Courthouse. It orders the acquittal of the defendant Matei Marinel, under the aspect of committing the crime of grand larceny, provided by art. 208 para. (1) - art. 209 para. (1) letters a) and g) para. (3) letter a) Previous Criminal Code, with the application of art. 41 para. (2) of the Criminal Code. It finds that the defendant Matei Marinel was detained from 22.11.2013 to 12.11.2014, inclusive. The decision was appealed by the Prosecutor's Office attached to the Ploiești Courthouse.
By Decision no. 954 / 26.10.2020 The Ploiești Court of Appeal admits the appeal declared by the Prosecutor's Office attached to the Ploiești Courthouse against the criminal sentence no. 1162 of August 3, 2020 pronounced by the Ploieşti Courthouse, which it annuls in its entirety and sends the case for retrial to the first instance according to the considerations of the present decision. Final.
By the Sentence no. 799/13.05.2022 the Ploiești Courthouse admits the revision request. It annuls the criminal sentence no. 1286/07.06.2013 of the Ploieşti Courthouse, final by the criminal decision no. 1383/14.10.2013 of the Ploieşti Court of Appeal. It orders the acquittal of the defendant Matei Marinel, under the aspect of committing the crime of grand larceny. The decision was appealed.
Procedural status of the case: Appeal
Deadline: 16.03.2023
13. File no. 8262/281/2016 - Ploiești Courthouse
Parties: Conpet SA - creditor
Conpet Club Football Association - debtor
Subject matter: Dissolution of a legal entity. Request for admission of the claim. Conpet SA formulates a request for admission of the claim on the property of the debtor Conpet Club Football Association, against which the dissolution was ordered by the Civil Sentence no. 8683 / 04.10.2016 pronounced by the Ploiești Courthouse in the file no. 8262/281/2016, by which it requests the court to admit the application for registration on the list of creditors of the debtor Conpet Club Football Association with the amount of RON 424.94, as a certain, liquid and due receivable, born before the admission of the dissolution application, representing the penalties payment rest, according to the invoice no. 1653 / 31.05.2015, calculated for the late payment of the obligations arising from the Lease Agreement no. ADM 366 / 23.10.2012, concluded by Conpet SA with the Conpet Club Football Association. By the address 39101 / 28.09.2017 Conpet requested the completion of the value of the debt registered by the Conpet Club Football Association and with the amount of RON 1,358.84 representing delay penalties born prior to the dissolution request (total RON 1,783.78). By the addresses no. 14907/20.04.2018, no. 43508/09.11.2018 and no. 6473/17.02.2020 Conpet requested the liquidator to communicate the steps taken to recover the amount of RON 1,783.78. In 2021, by the addresses no. 14399/27.04.2021 and no. 31732/15.09.2021 Conpet requested the Liquidator to inform us if there are assets in the association's patrimony and what are the prospects for the recovery of the debt or the completion of the dissolution and liquidation procedure of the Conpet Football Club Association.
Procedural status of the case: Merits
14. File no. 789/105/2017 - Prahova Court
Parties: ICIM SA by CITR Bucharest administrator - debtor
Conpet SA- creditor
Subject matter: Insolvency proceedings. Conpet requests the registration on the list of creditors of the company ICIM SA represented by judicial administrator CITR BUCHAREST SUBSIDIARY SPRL, with the total receivable in the amount of RON 393,934.37 representing delay penalties, legal expenses, execution costs.
A) RON 50,094, 8 representing the equivalent value of the works for repairing the damage to the pipeline Ø 6 RA Moreni-Ploiești and the lost crude oil, legal interest, legal expenses and execution costs established by the enforceable title - civil sentence no. 1014 / 28.01.2015 pronounced in the file no. 113/281/2014 remained final and corrected by the Conclusion of correction of the material error on 06.06.2016, by which the Ploiești Courthouse admitted the request for summons filed by the claimant Conpet S.A.
B) RON 343,839.57 composed of the amount of RON 331,271.57 representing penalties for delay in accordance with the provisions of art. 8.1. from the contract 0135/1995 (modified by art. 5 of the additional act 9/2005 and the additional act no. 10/2006), as well as the amount of RON 12,568 representing judicial stamp duty, judicial stamp and expertise fee.
Conpet was entered on the list with the requested amount.
The percentage of the Conpet receivable is 0.75 & of the total receivables entered on the list.
ICIM filed an appeal which is the subject of the file no. 789/105/2017 / a1 and requested:
- mainly a partial amendment of the preliminary list of creditors in connection with the rejection of the application for entry of the claim in the amount made by Conpet
- in the alternative, a partial amendment of the preliminary list of creditors for the purpose of entering the conditional Conpet claim.
The ICIM appeal was the subject matter of the file 789/105/2017 / a1. By the Decision 776/2018, the Prahova Court rejects the appeal regarding the preliminary list formulated by the debtor INTREPRINDEREA CONSTRUCŢII INSTALAŢII MONTAJE SA regarding the claim of the creditor CONPET SA
By the Conclusion of 11.09.2020, the Prahova Court ordered the entry into the bankruptcy procedure of the debtor.
Procedural status of the case: Merits
Deadline: 29.03.2023
15. File no. 2782/229/2018 - Ialomita Court
Parties: Conpet SA - claimant
Zacon Trandafir - defendant
Subject matter: Conpet SA filed a summons for the named Zacon Trandafir so that based on the evidence that will be administered, the court will issue a court decision by which:
- found the absolute nullity of the sale-purchase contract no. 1047 / 03.02.1999, concluded between Conpet SA, as seller and Zacon Trandafir as buyer;
- orders to the defendant to pay the legal expenses.
In the alternative, the defendant Zacon Trandafir is required to pay the equivalent value of the property at the fair market value established following the administration of a forensic technical expertise.
Clarifications: By the Conclusion of 22.04.2021, the Fetesti Courthouse defers the judgement for the date of 05.05.2021, disjoins the second end of the request and orders the formation of a new file, having as object an application for damages.
By Sentence no. 828/2021 of 29.07.2021, it rejects as unfounded the request for summons filed by the claimant S.C. CONPET S.A. in contradiction with the defendant ZACON TRANDAFIR, having as subject matter the annulment of the deed (affirmance of absolute nullity). It admits the counterclaim filed by the defendant-claimant ZACON TRANDAFIR, in contradiction with the claimant-defendant S.C. CONPET S.A. having as subject matter the finding of a valid conclusion of the contract concluded between the parties. It obliges the claimant to pay to the defendant the amount of RON 7,471, as legal expenses (RON 3,000 - lawyer's fee, RON 4,471 - judicial stamp duty). The decision can be appealed in 30 days after the communication, which will be submitted at the Fetesti Courthouse.
By the Decision 702/07.06.2022 the Ialomita Court rejects, as unfounded, the appeal declared by the appellant CONPET S.A., against the Civil Sentence no. 828 of 29.07.2021, pronounced by the Feteşti Courthouse, Ialomiţa County, in the File no. 2782/229/2018. It rejects the appellant's request for court expenses as unfounded. It obliges the appellant to pay to the respondent ZACON TRANDAFIR the amount of RON 2,000, as legal expenses in the appeal, representing the lawyer's fee. With the right of appeal within 30 days of communication.
Procedural status of the case: --
Deadline: --
16. File no. 8727/105/2017 - Prahova Court
Parties: Conpet SA - claimant
PAULUS S.R.L. - Defendant
Subject: Bankruptcy - general procedure
Subject matter: On 14.10.2019, Conpet filed a payment request with the judicial administrator CITR BUCHAREST SUBSIDIARY SPRL (art. 75 * paragraph 3 of Law no. 85/2014) for the payment of the amount of RON 32,493.44, amount due on 04.07.2019 by PAULUS SRL (CF 4000500), for not fulfilling the obligations established by the contract no. S-CA 1191 / 05.07.2017 (air conditioning maintenance). The request was granted.
Clarifications: Paulus filed an appeal against the measure of the judicial administrator file 8727/105/2017 / a13 - Appeal term 09.09.2020 (Ploiesti Court of Appeal). By Decision 213/2020, the appeal was rejected.
Conpet addressed the insolvency practitioner for the recovery of the amount of RON 2,891.95 from the performance guarantee, and to pay the difference of RON 29,601.49 with priority according to the law. On 09.06.2021, the amount of 2,891.95 was recovered from the performance guarantee (OP 06/09/2021/2021060992857782)
By the Interim Decision 163/24.03.2022, the Prahova Court orders the entry into bankruptcy of the debtor in the general procedure. Pursuant to art. 145 para. 2 of Law no. 85/2014, it appoints a provisional judicial liquidator to the initially appointed insolvency practitioner, EUROSMART FILIALA PRAHOVA, with a remuneration of RON 2500, who will fulfill the duties provided by art. 64 of the law. Pursuant to art. 145 para. 2 of Law no. 85/2014 regarding insolvency prevention and insolvency procedures, it orders the dissolution of the debtor company and the lifting of the debtor's right of administration. It provides for the notification of the opening of the bankruptcy procedure to the debtor, creditors and the office of the trade register attached to the Prahova Court, for making the mention, as well as the publication in the National Bankruptcy Register. Based on art. 146 para. 2 letter a of the law, it sets the deadline for submitting requests regarding claims arising after the opening of the procedure on 06.05.2022. Based on art. 146 para. 2 letter b of the law, it sets the deadline for the verification of claims arising during the procedure, the preparation, display and communication of the additional list of creditors on 06.06.2022.
Procedural status of the case: Merits
Deadline: 07.06.2023
17. File no. 2036/83/2019 - Satu Mare Court
Parties: Conpet SA - claimant
PRODREP MG S.R.L. - Defendant
Subject: bankruptcy
Subject matter: On 18.11.2019, Conpet filed an application for registration on the list of creditors of the debtor PRODREP MG S.R.L. with the amount of RON 284,496.11 representing:
- damages in the amount of RON 148,926.49 provided in art. 18.2 of the works contract L-CA 699 of 28.09.2017 (20% of the contract value provided in art. 3 of the contract);
- penalties of 0.5% / day of delay provided by art. 17.1 of the works contract L-CA 699 of 28.09.2017 applied to the value of the unexecuted works in the amount of RON 46,575 for a number of 162 days of delay calculated from 10.04.2019 to 19.09.2019 the date of termination of the contract;
- equivalent value for electricity supply in the amount of RON 16.54 for the period 01.08.2019-31.08.2019, resulting from the execution of the works contract L-CA 699 of 28.09.2017;
- penalties of 0.5% / day of delay in the amount of RON 78,644.16 provided by art. 17.1 of the works contract L-CA 537 of 27.07.2017 applied to the value of unexecuted works for a number of 168 days of delay calculated from 01.05.2019 to 15.10.2019 the date of opening the insolvency procedure;
- penalties of 0.5% / day of delay in the amount of RON 10,333.92 provided by art. 17.1 of the works contract L-CA 380 of 05.10.2016 applied to the value of the unexecuted works for a number of 114 days of delay calculated from the date set for the completion of the works until their actual completion.
Conpet filed an application for registration on the supplementary list and for the amount of RON 18,724.8 (address 38994 / 04.12.2020) representing the current receivable born after the date of opening the insolvency and appeal procedure to the extent of the administrator to recover the amounts of RON 5,105.26 (address 30649 / 29.09.2020) and RON 49,295.45 (address 38987 / 04.12.2020) representing aggregate repairs, performed during the warranty period.
Currently, CONPET is listed on the final consolidated list with the following amounts: RON 284,496.11 and RON 18,724.80 (8th rank on the list). At the 16th rank on the list, we were registered provisionally and with the amount of RON 54,400.71 (RON 5,105.26 + 49,295.45) until the notification of the sentence pronounced in the file 2036/83/2019/a7 - in this file the court allowed us to recover the amount of RON 54,400.71 from the performance guarantee, and the amount was paid on 10.06.2021.
Clarifications: at the deadline on 20.10.2020, the court admitted the request of the judicial administrator and pursuant to art. 145 paragraph 1 point A letter c and point B of Law no. 85/2014 ordered the beginning of the bankruptcy procedure in the general form of the debtor PRODREP MG S.R.L. - SC 339 / F / 20.10.2020 BPI 18101 / 28.10.2020. On 26.11.2021 Conpet made a request for intervention in the file 2036/83/2019 / a9. By the decision no. 207/2022 the court rejected the request for additional intervention formulated by Conpet. On 26.11.2021 Conpet filed an appeal against the administrator's measure – the file no. 2036/83/2019/a10.
By the Decision no. 204/19.04.2022 the court admitted the appeal filed by Conpet against the measure taken by EURO INSOLV SPRL as judicial liquidator and ordered the judicial liquidator to pay Conpet the sum of RON 26,636.47.
Procedural status of the case: Merits
Deadline: 21.03.2023
18. File no. 4532/281/2020 * - Ploiesti Courthouse
Parties: Conpet SA - claimant
Dobrogeanu Dumitru - defendant
Subject matter: Conpet filed an appeal against the documents issued in the enforcement file no. 1/2020 pending before the Office of the Bailiff Divoiu Maria and requested:
1. Cancellation of the summons from 12.02.2020 issued by the Office of the Bailiff Divoiu Maria for the payment of a debt in the amount of RON 19,342.63 (RON 16,321.30 representing the difference resulting from the calculation of inflation related to the amount of RON 53,116 for the years 2018 and 2019 starting with 20.12.2011 until 31.12.2018 for the amount due in 2018 and starting with 20.12.2011 until 31.12.2019 for the amount due in 2019, RON 1,079.1 representing execution expenses and RON 1,942.23 representing the executor's fee)
2. Cancellation of the Conclusion establishing the execution expenses in the amount of RON 3,021.33 from 12.02.2020 issued by the Office of the Bailiff Divoiu Maria in the execution file no. 1/2020
3. Cancellation of the notice of establishment of the attachment issued on 12.02.2020 issued by the Office of the Bailiff Divoiu Maria in the execution file no. 1/2020
4. Return of the execution for the amount of RON 131.55 representing the difference resulting from the calculation of the inflation index calculated by the bailiff Divoiu Maria (16,321.30 RON) according to the conclusion of 12.02.2020 and the calculation made by CONPET S.A. according to INS (16,189.75 RON).
5. Return of the execution for the amount of RON 1,311.97 paid as a debit update with the inflation index for the period 01.01.2018-31.12.2018 within the real payment offer no. 5/2018 – the Bailiff’s Office Petcu Alexandru
6. Return of the execution for the amount of RON 1,333.21 paid as a debit update with the inflation index for the period 01.01.2019-31.12.2019 within the real payment offer no. 2/2019 made by the Professional Civil Society of Bailiffs Goslan and Stanga
7. Return of the execution for the difference in fee paid in addition to Bailiff’s Office Divoiu Maria within the execution file no. 1/2020, respectively the amount of RON 587.78 (16,189.75 CONPET calculation as debit - 1,311.97-1,333.21 = 13,544.57; the debit is 13,544.57X10% = 1,354.45; 1,942.23 RON fee paid - 1,354. 45 RON fee due = 587.78 RON)
8. Return of the execution for the amount of RON 850 representing unjustified execution expenses
Clarifications: By Conclusion no. 1136 / 16.07.2020 The Ploiești Courthouse admits the plea of the territorial incompetence of the Ploiești Courthouse, a plea invoked ex officio by the court. It declines the competence to settle the case having as object a contestation to execution formulated by the claimant CONPET S.A., in contradiction with the defendant Dobrogeanu Dumitru in favor of the Câmpina Courthouse.
By Conclusion no. 51 / 13.01.2021 The Câmpina Courthouse admits the plea of the territorial incompetence of the Câmpina Courthouse, invoked by the appellant CONPET SA. It declines the competence to settle the case regarding the appellant CONPET SA and the respondents DOBROGEANU DUMITRU and Bailiff’s Office DIVOIU MARIA in favor of the Ploieşti Courthouse. It notes the negative conflict of jurisdiction that occurred between the Ploieşti Courthouse and the Câmpina Courthouse. It suspends the settlement of the case until the negative conflict of competence is resolved. It sends the case to the Prahova Court for a ruling by the competent regulator. At the deadline of 25.02.2021, the Prahova Court sent for settlement to the Ploiesti Courthouse - the Ploiesti courthouse file 4532/281/2020 *. At the deadline of 29.06.2021, the court ruled and remanded the case pending for an expertise. At the deadline of 20.01.2022 the case was judged, the court remained in ruling – 14.03.2022. On 14.03.2022, the court put the case back on pending in order to specify the recitals for the appeal regarding the failure to specify the obligation to update the compensation in the content of the enforceable title – the Civil Decision no. 669/20.12.2011. At the deadline of 12.10.2022, the court admitted in part the challenge to the enforcement filed by CONPET, canceled in part the conclusion of forced execution expenses from 12.02.2020 issued by the Bailiff’s Office DIVOIU MARIA, in the sense of removing the amounts representing expenses for the registration of the file in computer system, file archiving, expenses necessary for enforcement, photocopying, issuing enforcement documents, information request expenses, in the amount of RON 579.1, and the amount of RON 330.44 representing the bailiff's fee. It partially annulled the summons dated 12.02.2020 issued by the Bailiff’s Office DIVOIU MARIA in enforcement file no. 1/2020, for the amount of RON 3,686.27, of which RON 2776.73 representing the unjustified debit difference, RON 579.1 unjustified execution expenses and RON 330.44 representing the unjustified bailiff's fee difference. It partially annulled the garnishment notice dated 12.02.2020 issued by the Bailiff’s Office DIVOIU MARIA in enforcement file no. 1/2020, for the amount of RON 3,686.27, of which RON 2776.73 representing the unjustified debit difference, RON 579.1 unjustified execution expenses and RON 330.44 representing the unjustified bailiff's fee difference. It admitted to the return of enforcement for the amount of RON 3,686.27, of which RON 2776.73 representing the unjustified debit difference, RON 579.1 unjustified execution expenses and RON 330.44 representing the unjustified bailiff's fee difference. It ordered the respondent to pay the sum of RON 243.95 as legal expenses, which is the price of photocopying the enforcement file. Both CONPET and Dobrogeanu Dumitru filed an Appeal.
Procedural status of the case: Appeal
Deadline: 15.05.2023
19. File no. 1186/223/2020 - Drăgășani Courthouse
Parties: Conpet SA - petitioner
ITM Vâlcea - respondent
Subject matter: Appeal against contravention minutes no. 009540 / 07.05.2020 prepared by ITM Vâlcea by which Conpet S.A. was sanctioned with a fine of RON 8,000 for the documents in the periodic training files of Mr. Hotei Stefan.
Clarifications: By Sentence 582/25.05.2021 the court admitted in part the misdemeanor complaint filed by the petitioner CONPET S.A., against the misdemeanor report series VL ITM no.009540 concluded on May 7, 2020 by I.T.M. Vâlcea, in contradiction with the respondent Vâlcea Territorial Labor Inspectorate. It amends the misdemeanor report series VL ITM no.009540 concluded on May 7, 2020 by I.T.M. Vâlcea and consequently, replaces the sanction of the contravention fine in the amount of RON 8,000 applied based on art. 39 paragraph 4 of Law no. 319/2006 with the sanction “Warning”. It draws the petitioner's attention to the provisions of Article 7 of G.D. no.2 / 2001 amended. With the right to appeal within 30 days from the communication
Procedural status of the case: Merits
Deadline: --
20. File no. 16445/281/2020 - Ploiești Courthouse
Parties: Conpet SA - civil party
Drăghici Adrian Marian - defendant
Tocu Petrică - defendant
Constantin Dan - defendant
Atanasiu Ion - defendant
Subject matter: Grand larceny. Conpet was a civil party for the amount of RON 87,184.57, representing the equivalent value of 40 liters of stolen and unrecovered gasoline (84.26 RON), the equivalent value of 17,615 kg of gasoline lost after the discharge of the pipeline (in order to intervene to remedy the pipeline at the point where it was damaged) (53,930.69 RON) and the equivalent value of the remediation works for the pipeline Ø 65/8” Țicleni - Ploiești, consisting in the decommissioning of the artisanal installation, works necessary to restore the pipeline in working order (RON 28,956.81) .
Clarifications: By Conclusion no. 690 / 09.12.2020 pronounced in the file no. 16445/281/2020 / a1 rejects the requests and pleas invoked by the defendants DRĂGHICI ADRIAN MARIAN, TONCU PETRICĂ, CONSTANTIN DAN and ATANASIU ION, finds the material and territorial competence of the court, the legality of the referral with the indictment no. 3569 / P / 2014 of 30.06.2020 of the Prosecutor's Office attached to the Ploieşti Courthouse, of the legality of the administration of evidence and of the execution of criminal investigation acts. It orders the beginning of the trial in the case registered in the Ploieşti Courthouse under number 16445/281/2020. The Conclusion was contested by the defendants. By Conclusion no. 138 / 26.03.2021 The Prahova Court admits the appeals of the defendants: DRĂGHICI ADRIAN MARIAN; TONCU PETRICĂ; CONSTANTIN DAN; ATANASIU ION. It annuls the contested decision and sends the case for retrial to the same court, the Ploieşti Courthouse, according to the provisions of the present decision. By Conclusion no. 379/12.07.2021 pronounced in the file no. 16445/281/2020 / a1 * The Ploiești Courthouse rejects as unfounded the requests and pleas invoked by the defendants DRĂGHICI ADRIAN MARIAN, CONSTANTIN DAN and ATANASIU ION, it finds the material and territorial competence of the court, the legality of the notification with the indictment no. 3569/P/2014 of 30.06.2020 of the Prosecutor's Office attached to the Ploieşti Courthouse, the legality of the administration of evidence and of the execution of criminal prosecution acts, regarding the defendants: DRĂGHICI ADRIAN MARIAN, TONCU PETRICĂ, CONSTANTIN DAN. It orders the beginning of the trial in the case bending before the Ploieşti Courthouse under number 16445/281/2020 regarding the defendants DRĂGHICI ADRIAN MARIAN, TONCU PETRICĂ CONSTANTIN DAN and ATANASIU ION. The conclusion was appealed by the defendants. By the Conclusion no. 418 / 07.10.2021 The Prahova Court rejects as unfounded the appeals filed by the appellants-defendants DRĂGHICI ADRIAN MARIAN, TONCU PETRICĂ, CONSTANTIN DAN. By the Conclusion of 15.06.2022, the Ploiești Courthouse rejects as unfounded the request, made by the chosen defender of the defendants Constantin Dan, Drăghici Adrian Marian and Toncu Petrică, to refer the case to the preliminary chamber procedure/resumption of the preliminary chamber procedure.
Procedural status of the case: Merits
Deadline: 12.04.2023
21. File no. 6143/2/2020 - Bucharest High Court of Cassation and Justice
Parties: Conpet SA - claimant
The Insured Guarantee Fund – defendant
Subject matter: Conpet appealed against Decision no. 24238 / 25.09.2020 issued by the Insured Guarantee Fund by which the payment requests no. 79167, 79166, 79163, 81691, 81687, 81698, 82691, 82690, 88271, 88728 and 89684 were rejected.
Clarifications: CONPET S.A. formulated payment requests for the refund of amounts related to policies concluded with the Insurance-Reinsurance Company ASTRA S.A. during the years 2009-2015, but by decision no. 24238 / 25.09.2020 which is the subject matter of the appeal, the Insured Guarantee Fund did not refer to the requests made by CONPET S.A. for the refund of the amounts due. The payment requests no. 79167, 79166, 79163, 81691, 81687, 81698, 82691, 82690, 88271, 88728 and 89684 specified in the decision are not related to any documents issued by our company.
By Sentence no. 1051/30.06.2021 The Bucharest Court of Appeal admits the request. It annuls the decision no. 24238/25.09.2020 issued by the Insured Guarantee Fund. It obliges the defendant to issue an administrative act admitting the request for payment made by the claimant for the amount of RON 36,430.13. The Insured Guarantee Fund appealed the decision.
Procedural status of the case: Appeal
Deadline: 18.01.2024
22. File no. 25520/212/2020 - Constanța Courthouse
Parties: Conpet SA - claimant
Safir Gabriela - defendant
Subject matter: Conpet formulates a request for summons of the defendant SAFIR GABRIELA domiciled in Ovidiu locality, 101 Poporului street (or 82 A), Constanța county so that by the decision you will pronounce to order the establishment of the share due to each co-owner on the building located in Ovidiu locality, Poporului street no. 82 A, Constanța county, building located in the joint property (joint ownership) of our debtor SAFIR MARIUS (execution file 51 / 2019- Bailiff’s Office Menaef Cristian) and of the defendant SAFIR GABRIELA.
Clarifications: By the Conclusion of 13.01.2021, the Constanța Courthouse annuls the request for summons citing that it did not submit the land book extract regarding the building within 10 days.
Against the conclusion, Conpet filed a request for re-examination through which we demonstrated that the building construction jointly owned by the defendant Safir Gabriela and our debtor Safir Marius is not registered, the joint ownership right not being registered in the land book. Conpet, having knowledge of the existence of the property right in the patrimony of the defendant and the debtor from the primacy relations from the Ovidiu City Hall. At the same time, we demonstrated the court of justice that only the exclusive ownership right of the debtor over the land is registered in the land book and we have attached an extract from the land book for the land, as well as all the steps taken by Conpet and the Bailiff’s Office Menaef Cristian.
By Decision no. 5783/21.04.2021 disposed in file 25520/212/2020/a1, the Constanța Courthouse admitted the request for re-examination made by Conpet and orders the re-sending of the file to panel C31 for the continuation of the procedure.
By the Conclusion of 11.01.2022, the Constanta Courthouse, based on art. 413 para. (1) pt. 1 of the Code of Civil Procedure, suspends the trial of the present action until the final settlement of the file no. 27269/212/2021, pending before the Constanţa Courthouse. With a separate right of appeal, during the suspension of the trial.
Procedural status of the case: Merits - suspended
Deadline: --
23. File no. 238/42/2021 - Ploiești Court
Parties: Conpet SA - claimant
Ministry of Agriculture and Rural Development defendant
Ialomița County Directorate for Agriculture defendant
National Agency for Cadastre and Real Estate Advertising defendant
Subject matter: Obligation of the defendants to pay CONPET S.A. of the amount of RON 238,300 representing the amount paid by CONPET S.A. and undue. The amount was paid in April 2017 for the removal from the agricultural circuit of a land area of 74,712 sq m, which was subsequently reduced by the restoration of the documentation to an area of 56,462 sq m. The investment objective was “Oil pipeline replacement Ø 14 '' C2 - C3 on 8 sections in Balta Ialomiței area, Ialomita County on a length of approx. 4,037 m”- Project no. 160/4993/2016 PETROSTAR.
Clarifications: By the Conclusion no. 130 / 08.09.2021 The Ploiești Court of Appeal admits the motion to dismiss for lack of jurisdiction of the Ploiesti Court of Appeal. It declines jurisdiction to settle the case in favor of the Prahova Court. At the deadline of 04.04.2022, the court rejected the plea of the lack of procedural passive quality, invoked by the defendant, as unfounded, and admitted the request and obliged the defendants to pay to CONPET the amount of RON 238,300 representing the amount paid and undue. With the right of appeal within 15 days from the communication.
By the Decision 317/ 04.04.2022, the Prahova Court rejects the plea of the lack of procedural passive quality, invoked by the defendant, as unfounded. It admits the request with claims as its subject matter, and obliges the defendants to pay the claimant the amount of RON 238,300, representing the amount paid and undue. With the right of appeal within 15 days from the communication.
Procedural status of the case: --
Deadline: --
24. File no. 1270/229/2021 - Fetesti Courthouse
Parties: Conpet SA- Claimant
Zacon Trandafir - Defendant
Subject matter: Claims
Clarifications: File disjointed from file no. 2782/229/2018.
By the Conclusion of 22.04.2021, the Fetesti Courthouse ordered the suspension of the trial until the resolution of the merits case, from which the second head of the claim was disjointed.
Procedural status of the case: Suspended
25. File no. 3011/105/2021 - Prahova Court
Parties: Conpet S.A. - claimant
Tiab S.A. - Defendant
Subject matter: Conpet is suing TIAB S.A. Bucharest requesting:
1. Finding the unilateral termination of the Supply Contract no. P-CA 559 / 08.08.2017 in accordance with the provisions of art. 19.4 letter b) of the contract;
2. Obligation of the defendant TIAB S.A. upon payment to CONPET S.A. of the amount of RON 109,841.24 representing damages in the amount of 20% due by the defendant according to art. 19.5 paragraph (1) of the supply contract no. P-CA 559 / 08.08.2017, as a result of the unilateral termination of the contract in accordance with the provisions of art. 19.4 letter b) of the contract;
3. Obligation of the defendant TIAB S.A. upon payment to CONPET S.A. of penalties in the amount of RON 1,081,936.25, due by the defendant in accordance with the provisions of art. 18.1 of the contract no. P-CA 559 / 08.08.2017, for non-execution in time of the obligations of supply, installation and commissioning of a technical system of Security at Marghita Platform, penalties calculated until the date of the unilateral termination of the contract (24.06.2021);
4. Obligation of the defendant to pay the legal expenses.
Subsidiarily, in so far as the court dismisses the main heads of claim, Conpet requested:
1. Termination of the Supply Contract no. P-CA 559/08.08.2017 through the fault of the defendant TIAB S.A. in accordance with Art. 19.1 of the contract, for the non-execution of the obligations consisting in the supply, installation and commissioning of a technical safety system at Marghita Platform.
2. Obligation of the defendant TIAB S.A. upon payment to CONPET S.A. of penalties in the amount of RON 917,174.39, due by the defendant in accordance with the provisions of art. 18.1 of the contract no. P-CA 559/08.08.2017, for non-execution in time of the obligations of supply, installation and commissioning of a Technical Security System at Marghita Platform, penalties calculated until the date of the unilateral termination of the contract (24.06.2021) as well as in continued until the date of the final decision of the court.
3. Obligation of the defendant to pay the legal expenses.
Clarifications: By the Decision no. 212/23.09.2022 The Prahova Court admits in part the request It acknowledges the termination of the supply contract no. P-CA 559 from 08.08.2017 starting from 24.06.2021. It obliges the defendant to the claimant to pay the amount of RON 109,841.24 representing damages. It rejects the rest of the request as unfounded. It rejects the counterclaim as unfounded. It obliges the defendant to pay legal expenses in the amount of RON 3500 legal expenses corresponding to the admitted claims. With appeal within 30 days of communication.
Procedural status of the case: --
Deadline: --
26. File no. 4289/105/2021** - Ploiești Courthouse
Parties: Conpet SA - claimant
Ministry of Agriculture and Rural Development defendant
Ialomița County Directorate for Agriculture defendant
National Agency for Cadastre and Real Estate Advertising defendant
Subject matter: Obligation of the defendants to pay CONPET S.A. of the amount of RON 121,313 the amount paid by CONPET S.A. as a guarantee. The amount was paid on 18.06.2015 for the removal from the agricultural circuit of a land area of 26,453 sq. m, but the construction permit was not obtained for the investment objective, which should have led to the return of the guarantee. The investment objective was “Replacement of the Călăreți-Ploiești imported crude oil pipeline Ø 12 ¾" F1 on 5 sections, in length of 4115 m and Ø 12 ¾ "F2 on 5 sections, in length of 3800 m, total 7915 m". – a PETROSTAR project. At the deadline of 12.01.2022, the court ruled on the plea of jurisdiction of the Prahova Court. By the Decision of 8/12.01.2022, the court admitted the motion to dismiss for lack of jurisdiction of the Prahova Court. By the Decision 8/12.01.2022, the court admitted the motion to dismiss for lack of jurisdiction of the Prahova Tribunal invoked by the defendant MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT. It declines the jurisdiction to resolve the case in favor of the Ploiesti Courthouse. No appeal. On 04.05.2022 the court admitted the plea of the lack of passive procedural quality of the defendant the NATIONAL AGENCY FOR CADASTRE AND REAL ESTATE ADVERTISING, invoked by it. It rejected the claim filed against the defendant the NATIONAL AGENCY FOR CADASTRE AND REAL ESTATE ADVERTISING, as being filed against a person lacking passive procedural status. It rejected the plea of Statute of Limitations, invoked by the defendants MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT and PRAHOVA COUNTY DIRECTORATE FOR AGRICULTURE, as unfounded. It rejected the exception of the belatedly claim, invoked by the defendants MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT and PRAHOVA COUNTY DIRECTORATE FOR AGRICULTURE, as unfounded. It rejected the request filed against the defendants MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT and PRAHOVA COUNTY DIRECTORATE FOR AGRICULTURE, as unfounded. On 22.06.2022, CONPET filed an appeal. On 11/09/2022, the court raised and admitted the motion to dismiss for lack of jurisdiction of the II Civil Division of the Prahova Court and declined the jurisdiction to resolve the appeal in favor of the I Civil Division of the Prahova Court.
Clarifications: --
Deadline: 23.03.2023
27. File no. 17936/281/2021 - Ploiești Courthouse
Parties: Conpet SA - claimant
SYSTEMS OF ECOLOGYCAL SOLUTIONS SRL Ilfov - defendant
RECOP RECYCLING (former CĂTĂOIL PRODUCTIONS SRL) - defendant
Subject matter: Conpet is filing a summons, requesting the court:
1. Obligation, jointly and severally, of the defendants to pay CONPET S.A. of the amount of RON 29,927.68 representing delay penalties calculated for the period 12.09.2019 – 25.05.2020 inclusive, due by the defendants in accordance with the provisions of art. 16.1 (1) of the contract no. S-CA 806 / 06.12.2017, for the non-execution of the sludge cleaning services, the performance of the operations related to the cleaning of the tank as well as the transport of the resulting sludge, including the activity of recovery / disposal in safe environment, related to the R9 Crude Oil Tank within the Siliște Automated Crude Oil Pumping Station, Poiana Lacului-Siliște Sector, Division 2 South, Dâmbovița County;
2. Obligation, jointly and severally, of the defendants to pay CONPET S.A. of the amount of RON 155,792.97, representing 20% of the estimated value of the contract, due according to art. 17 of the service contract no. S-CA 806 / 06.12.2017, following the unilateral termination of the contract due to the fault of the defendant;
3. Orders the defendants jointly and severally to pay the legal expenses of the proceedings in question.
Clarifications: By the Sentence no. 3882 of 20.05.2022 the Ploiești Courthouse admits the action in part. It obliges the defendants to pay the claimant late penalties in the amount of 0.5%/day starting from 10.12.2019 and until 20.05.2020, in the amount of RON 19,523.13. It rejects the rest of the action as unfounded. It obliges the defendants to pay the claimant the sum of RON 1,081.15 as legal expenses consisting of judicial stamp duty, in proportion to the admitted claims. It forces the claimant to pay the defendant Systems of Ecological Solutions S.R.L. the amount of RON 3,000 as legal expenses consisting of lawyer's fees, in proportion to the admitted claims. The decision was appealed by Conpet SA and SYSTEMS OF ECOLOGYCAL SOLUTIONS SRL.
Conpet SA filed a request to correct a material error in the Sentence no. 3882 of 20.05.2022 pronounced by the Ploiești Courthouse. By the Conclusion of 14.10.2022, the Ploiești Courthouse accepts the request to correct the material errors. It directs the minutes, considerations and disposition of Civil Sentence no. 3882 dated 20.05.2022 pronounced by the Ploiesti Courthouse in the file no. 17936/281/2021 in the sense that it will be read correctly: " It obliges the defendants, jointly and severally, to pay the claimant late payment penalties in the amount of 0.5%/day starting from 10.12.2019 and until 25.05.2020, in the amount of RON 19,523.13". "It obliges the defendants, jointly and severally, to pay the claimant the amount of RON 1,081.15 as legal expenses, consisting of judicial stamp duty, in proportion to the admitted claims". The conclusion was appealed by Conpet and SYSTEMS OF ECOLOGYCAL SOLUTIONS SRL Ilfov.
Procedural status of the case: Appeal
Deadline: 13.06.2023
28. File no. 19121/281/2021 - Ploiesti Courthouse
Parties: Conpet SA - petitioner
Dobrogeanu Dumitru
Subject matter: Invalidation of enforcement. Conpet requested the court to order the invalidation of foreclosure carried out on the basis of the enforceable title represented by decision no. 669 of 20.12.2011 of the Prahova Court in the execution file no. 458/2015 to the Divoiu Maria Bailiff's Office, by restoring the situation prior to the enforcement, in the sense of obliging the defendant DOBROGEANU DUMITRU (pursuant to art. 723 of the Code of Civil Procedure) to pay the following amounts to the undersigned:
- RON 11067.41 representing the amount enforced by the Divoiu Maria Bailiff's Office illegally
- RON 800.40 as legal expenses (out of which RON 600 represent the fee of the accounting expertise and RON 200.40 represent the equivalent value of photocopies of the execution file 458/2015), amount to which the defendant was obliged by the sentence 8369 / 19.10.2017 pronounced in the file 983/281/2016 remained final by Decision no. 1239 / 26.09.2018
- RON 200.40 represents the equivalent value of the photocopies of the execution file 458/2015 (for the file 8115/281/2016) amount to which the defendant was obliged by the sentence 2448 / 26.03.2018 pronounced in the file 983/281/2016 (which ordered the completion of the operative part of the civil sentence 8369 / 19.10.2017 pronounced in the file with the same number) remained final by Decision no. 1239 / 26.09.2018 of the Prahova Court
Also, we request the updating with the penalizing legal interest of the amount of RON 11,067.41 starting with the date of 01.04.2016 and up to the date of the effective payment.
Clarifications: --
Deadline: 23.03.2023
29. File no. 27269/212/2021 - Constanța Courthouse
Parties: Conpet SA - claimant
Safir Marius - defendant
Safir Gabriela Izabela
Subject matter: Revocation of donation deed. Conpet requested the court to order, pursuant to art. 1562 et seq. Of the Civil Code, that the deed of donation authenticated under the no. 293 of April 8th, 2021 at the Beiu Professional Partnership of Notaries to be declared unenforceable against the CONPET SA company, creditor of the donor debtor.
Clarifications: On 11.03.2022, the Constanța Courthouse admits the request to suspend the trial of the present case, formulated by the defendant Safir Marius. Pursuant to art. 413 para. 1 pt. 1 of the Code of Civil Procedure, orders the suspension of the trial of the case until the final settlement of the file no. 32805/212/2021 pending before the Constanta courthouse, in the case regarding the claimant Conpet, in contradiction with the defendants Safir Marius and Safir Gabriela Izabela, having as action to set aside. The decision may be appealed for the entire duration of the suspension.
Deadline: --
30. File no. 5081/105/2013 / a13 - Prahova Court
Parties: Energopetrol SA through Judicial Administrator Andrei Ioan Ipurl - respondent
Conpet SA - appellant
Subject matter: Appeal against the measures of the judicial administrator / liquidator
Clarifications: By the Decision 11 of 19.04.2022, the Prahova Court admits the appeal. It cancels the measure of the judicial administrator regarding the prescription of the right to request the payment of the amount of RON 7556.34. It finds that the amount of RON 7556.34 is included in the debtor's current debtors statement in BPI no. 4717/16.03.2022. With appeal within 7 days from the communication.
Deadline: --
31. File no. 11372/94/2022-Buftea Courthouse
Parties: Conpet -claimant
Peștişor Marius Sever-defendant
Peștișor Elena Loredana-defendant
Dobre Maria-defendant
Subject matter: Conpet formulates a request to summon the defendants and for the opposition of the defendant DOBRE MARIA, requesting the court to order the determination of the share due to each co-owner of the building composed of a construction intended for "residential house" with a built area of 16.87 sq.m. and intra-village construction land with an area of 50.72 sq.m., identified with the land book no. 5445/2, building located in Voluntari Town, Ilfov County, Doicești str., no. 28, registered in the LB no. 8426 of Voluntari Locality.
Clarifications: --
Procedural status of the case: --
Deadline: 18.05.2023
32. File no. 1336/223/2022 – Dragășani Courthouse
Parties: Conpet – petitioner
The Prosecutor's Office attached to the Dragășani Courthouse - respondent
Subject matter: Conpet S.A. formulates a complaint against the Dismissal Ordinance ordered on 28.02.2022 by the Prosecutor's Office attached to the Dragășani Courthouse in the file no. 518/P/2013, regarding the commission of the crime of grand larceny requesting the admission of the complaint, the abolition of the Dismissal Ordinance ordered on 28.02.2022 by the Prosecutor's Office attached to the Dragășani Courthouse in the file no. 518/P/2013 and the Ordinance rejecting the complaint no. 19/II/2/2022 ordered on 15.04.2022 by the first prosecutor of the Prosecutor's Office attached to the Vâlcea Court, the continuation of the criminal prosecution and investigations in order to identify the criminals and bring them to criminal responsibility for stealing between 07 and 14.03.2013 300 meters of electrical conductor to feed the cathodic protection station from Picătura point, Buciumeni village, Dragoești commune, Vâlcea county, as well as in order to recover the damage caused to our company (RON 5,490.56).
Clarifications: --
Deadline: 12.04.2023
33. File no. 11783/281/2022 – Ploiesti Courthouse
Parties: Conpet – claimant
Trafotech S.R.L. – defendant
Subject matter: Claims. Conpet formulates a summons requesting the court, through the decision it will pronounce, to order the obligation of the defendant TRAFOTECH S.R.L. upon payment to Conpet S.A. of the amount of RON 55,257, consisting of:
- RON 35,697 representing late penalties calculated for the period 14.02.2021 – 27.04.2021 inclusive, owed by the defendant in accordance with the provisions of art. 18.1 of the contract no. P-CA 391/15.12.2020,
- RON 19,560, representing 20% of the contract value, due according to the art. 19.2 of the supply contract no. P-CA 391/15.12.2020, following the unilateral termination of the contract due to the fault of the defendant.
Also, Conpet requests the obligation of the defendant TRAFOTECH S.R.L. to pay the legal expenses that it will incur in this case.
Clarifications: By the Civil Sentence of 27.10.2022, the Ploiești Courthouse admitted the action in part. It obliges Trafotech SRL to pay to Conpet SA the amount of RON 25,917, representing late payment penalties calculated for the period 14.02.2021 –27.04.2021 inclusive according to the art. 18.1 of the supply contract no. P-CA 391 of 15.12.2020. It obliges Trafotech SRL to pay to Conpet SA the amount of RON 19,560 representing compensatory damages according to the art. 19.2 of the supply contract no. P-CA 391 of 15.12.2020. It rejects the rest of the action, as unfounded. It obliges Trafotech SRL to pay to Conpet SA the amount of RON 1,969 as legal expenses, representing stamp duty. The decision was appealed by Trafotech SRL.
Procedural status of the case: Appeal
Deadline: --
34. File no. 13833/281/2021*/a1 - Ploiesti Courthouse
Parties: Conpet SA - claimant
Subject matter: Conpet filed a request requesting the full refund of the judicial stamp duty in the amount of RON 1,000 paid by our company through P.O. no. 5312 of 07.08.2021 in the file 13833/281/2021 for the settlement of the enforcement appeal filed by us, the undersigned Conpet, against the Decision of October 12, 2020 issued by the Petrov Sergiu Alexandru Bailiff's Office in the enforcement file no. 139/2019, debtor – Toncu Ștefan, Social Security Number 1670824293211, domiciled in Puchenii Mari commune, Odăile village no. 150, Prahova county.
Clarifications: By the Final Decision 1285/04.07.2022 the Ploiești Courthouse admits the request. It orders the refund to the petitioner of the judicial stamp duty in the amount of RON 1000, paid in the file no. 13833/281/2021 according to the payment order no. 5312/07.08.2021. Enforceable. With the right of appeal, which is submitted to the Ploieşti Courthouse, within 30 days from the communication.
Procedural status of the case: --
Deadline: --
35. File no. 2854/105/2022 – Prahova Court
Parties: Conpet SA – claimant
Eurosting AAW Industry S.R.L. defendant
Subject matter: Obligation of the defendant EUROSTING AAW INDUSTRY SRL. upon payment to CONPET S.A. of the total amount of RON 747,937.80 consisting of the amount of RON 83,640 representing damages in the amount of 20% due according to the art. 19.2 of the works contract no. L-CA 252/06.08.2019 and the amount of RON 664,297.80 representing late payment penalties calculated until 29.04.2021, owed by the defendant in accordance with the provisions of the art. 18.1 of the works contract no. L-CA 252/06.08.2019, for the non-execution of the obligations assumed by the contract. Obligation to pay legal expenses.
Clarifications: By the Conclusion of 26.01.2023 the Prahova Court admits the request for suspension of the trial of the case made by the defendant. It disposes in accordance with the art. 413 paragraph 1 point 1 of the Code of Civil Procedure, suspension of the case until the final settlement of File no. 4372/105/2022 pending before the Prahova Court-II Civil Division. With the right of appeal throughout the suspension.
Procedural status of the case: Merits - suspended
Deadline: --
36. File no. 17365/281/2022 – Ploiesti Courthouse
Parties: Conpet SA – claimant
Eurosting AAW Industry S.R.L. defendant
Subject matter: Obligation of the defendant EUROSTING AAW INDUSTRY SRL. upon payment to CONPET S.A. of the total amount of RON 69,141.30 consisting of the amount of RON 24,949.98 representing damages in the amount of 20% due according to the art. 18.2 of works contract no. L-CA 366 of 16.11.2020 and the amount of RON 44,191.32 representing late payment penalties calculated until 06.08.2021, owed by the defendant in accordance with the provisions of the art. 17.1 of the works contract no. L-CA 366 of 16.11.2020, for the non-execution of the obligations assumed by the contract. Obligation to pay legal expenses.
Deadline: 30.03.2023
37. File no. 2779/255/2022 – Marghita Courthouse
Parties: Conpet SA – petitioner
The prosecutor's office attached to the Marghita Courthouse - respondent
Subject matter: Conpet SA is filing a complaint against the Dismissal Ordinance ordered on 21.07.2022 by the Prosecutor's Office attached to the Marghita Courthouse in the file no. 476/P/2012, regarding the commission of the crime of grand larceny requesting the admission of the complaint, the abolition of the Dismissal Ordinance ordered on 21.07.2022 by the Prosecutor's Office attached to the Marghita Courthouse in the file no. 476/P/2012 and the Ordinance no. 74/II.2/2022 ordered on 23.08.2022 by the first prosecutor of the Prosecutor's Office attached to the Bihor Court, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the damage, for the purpose of stealing crude oil, of the crude oil transport pipeline Ø 4" Petru - Marghita, within the radius of Marghita locality, Bihor county, deed committed on 04.04.2012, as well as in order to recover the damage caused to our company (RON 10,713.91).
Clarifications:
Deadline: 27.04.2023
38. File no. 9581/311/2022 – Slatina Courthouse
Parties: Conpet SA – appellant
Şerban Georgeta - respondent
Subject matter: Conpet SA filed a request before the enforcement court (enforcement file no. 108/2022 – Slatina Courthouse) to establish the counter value of the quantity of 12,000 liters of crude oil at the amount of RON 32,331.16 without VAT, the amount of crude oil that the debtor ŞERBAN GEORGETA domiciled in Sârbii-Măgura commune, Vitănești village, Olt county had the obligation to surrender to CONPET according to the Criminal Sentence no. 69 of 19.03.2019, amount updated with the inflation rate calculated from the date when the criminal sentence 69/2019 became final (21.10.2019) until the date of payment.
Clarifications: By the Sentence no. 715/23.02.2023 The Slatina Courthouse admits the summons request. It determines the amount of RON 32,331.5 without VAT, the amount to be paid by the defendant to the claimant, as equivalent to the compensation for the non-execution of the obligation to do, consisting in the delivery of the amount of 12,000 liters of crude oil according to criminal sentence no. 69 of 19.03.2019 pronounced by the Costeşti Courthouse in the file no. 1450/214/2016. Enforceable. With the right of appeal within 10 days of communication.
Procedural status of the case: --
Deadline: --
39. File no. 23320/281/2022 – Ploiesti Courthouse
Parties: Conpet SA – claimant
Ministry of Agriculture and Rural Development defendant
Ialomița County Directorate for Agriculture defendant
National Agency for Cadastre and Real Estate Advertising defendant
Subject matter: jointly and severally obliging the defendants to pay to CONPET S.A. of the amount of RON 81,176.8 representing the amount paid as a guarantee.
The total amount of 81,176.8 was paid as a guarantee in October 2016 and August 2017 in order to temporarily remove the 22,586 square meter land area from agricultural use (category of arable use). Investment objective "Replacement of crude oil pipeline Ø 10¾'' Ghercești - Icoana - Cartojani on the sections: SPC Bârla, Bârla commune, Argeș County approx. 850 m, agricultural lands Bârla – Mirosi, Arges County, approx. 2,400 m and agricultural land in Negreni – Clanița village, Teleorman County, approx. 1,500 m, total 4,750 m"
Clarifications: --
Deadline: 18.04.2023
40. File no. 1736/185/2022 – Bălcești Courthouse
Parties: Conpet SA – petitioner
The prosecutor's office attached to the Bălcești Courthouse - respondent
Subject matter: Conpet SA files a complaint against the Dismissal Ordinance ordered on 20.09.2022 by the Prosecutor's Office attached to the Bălcești Courthouse in the file no. 1526/P/2013, regarding the commission of the crime of grand larceny requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the damage, by drilling for the purpose of stealing oil products, of the transport pipeline crude oil Ø 10" F1 Țicleni – Ploiești, within the area of Becșani locality, Vâlcea county, action ascertained on 12.12.2013, as well as in order to recover the damage caused to our company (RON 122,372.92).
Clarifications: --
Deadline: 13.03.2023
41. File no. 24060/281/2022 – Ploiesti Courthouse
Parties: CONPET SA – claimant
CNAIR - defendant
Subject matter: Conpet formulates against the Minutes of finding and sanctioning the contravention series R22 no. 0784761 concluded on 19.10.2022 by the National Road Infrastructure Administration Company - Center for Road Technical Studies and Informatics (C.N.A.I.R S.A - CESTRIN) with headquarters in Iuliu Maniu Blvd. 401A, district6, Bucharest through its employee Andrei Alexandru Mihailescu ( control authorization no. 086), an deed that we consider groundless and illegal.
We request the admission of the complaint, the annulment of the minutes of finding and sanctioning the contravention, series R22 no. 0784761 concluded on 19.10.2022 and the exemption of our company from paying the fine.
Subsidiariy, we request the replacement of the fine with the sanction of the warning.
Clarifications: --
Procedural status of the case: Merits
Deadline: 24.03.2023
42. File no. 350/228/2023 – Făura Courthouse
Parties: Conpet SA – petitioner
Subject matter: Conpet files a complaint against the Dismissal Ordinance of the case ordered on 17.11.2022 by the Prosecutor's Office attached to the Făurai Courthouse in the criminal case no. 113/P/2014, registered with our company under no. 46715/19.12.2022, as well as the Report on the basis of which the dismissal solution was ordered regarding the commission of the crime of grand larceny, provided by the art. 228 para. (1) according to the art. 229 paragraph (1) letter b) and paragraph (3) letter a) of the Criminal Code, because none of the two procedural documents are grounded in fact, thus not respecting the substantive issues stipulated in the art. 286 para. (2) and (4) of the Criminal Procedure Code.
Clarifications: --
Deadline: Ruling postponed to 23.03.2023
43. File no. 331/90/2016 – Vâlcea Court
Parties: Conpet SA – creditor
REMAT Vâlcea SA - debtor
Subject matter: Conpet submitted a request for admission of the claim and registration in the additional list of the creditor Remat Vâlcea SA with the amount of RON 4,538.61 (4,331.61 late payment penalties CON FA 6291/16.10.2017 + 200 RON legal expenses)
Clarifications: --
Deadline: 26.04.2023
44. File no. 706/249/2023 – Lehliu-Găra Courthouse
Parties: Conpet SA – petitioner
Subject matter: Conpet SA filed a complaint against the Ordinance rejecting the complaint no. 11/II-2/2023 ordered on 06.02.2023 by the first prosecutor of the Prosecutor's Office attached to the Călărași Court, in the file no. 1328/P/2014 of the Prosecutor's Office attached to the Lehliu-Gără Courthouse, by which, in a wrong way, Conpet's complaint was rejected against the Prosecutor's Dismissal Ordinance ordered on 28.11.2022 by the Prosecutor's Office attached to the Lehliu-Gără Courthouse in the criminal file no. 1328/P/2014 and the Report on the basis of which the dismissal solution was ordered regarding the commission of the crime of "grand larceny" provided for and punished by art. 228 para. (1) and art. 229 para. (1) letter b) of the Criminal Code, because none of the two procedural documents are substantiated in fact, thus not respecting the substantive issues stipulated in the art. 286 para. (2) and (4) of the Criminal Procedure Code.
Conpet SA requested the admission of the complaint, the abolition of the Ordinance rejecting the complaint no. 11/II-2/2023 ordered on 06.02.2023 by the first prosecutor of the Prosecutor's Office attached to the Călărași Court, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the crime of "grand larceny" of a potential metal terminal installed on the import crude oil transport pipeline, located in the concession of Conpet S.A., a pipeline that transits the territory of Pelinu locality, Dor Mărunt commune, Călărași county, an act classified as a crime of grand larceny provided for and sanctioned by the art. 228 paragraph (1) and art. 229 para. (1) letter b) of the Criminal Code. At the same time, the full reparation of the damage caused to our company was also requested.
Clarifications: --
Deadline: 17.03.2023
b) The list of files pending before Courts on 15.03.2023 in which the company CONPET S.A. has the status of defendant
1. File no. 8296/281/2007 - Ploiești Courthouse
Parties: Cornea Rodica Aurora
Conpet S.A., Petrotrans S.A., Regionala Transgaz Bucharest, Ministry of Finance - defendants
Subject matter: Cornea Rodica Aurora claims jointly and severally that the defendants are required to pay civil damages in the amount of EUR 74,000 representing the damage caused by the presence of pipes belonging to the defendants in the basement, the property of the claimant and the payment of civil damages provisionally assessed at RON 10,000 for the period of February 2004 - February 2006 as a result of the use of pipes that crossed the property of the claimant.
Clarifications: The case is suspended based on art. 36 of Law no. 85/2006.
Procedural status of the case: Merits
2. File no. 8297/281/2007 - Ploiești Courthouse
Parties: Rusu Mihaela - claimant
Conpet S.A., Petrotrans S.A., Regionala Transgaz Bucharest, Ministry of Finance - defendants
Subject matter: Rusu Mihaela claims that the defendants should be jointly and severally liable for civil damages in the amount of EUR 74,000, representing the damage caused by the presence of pipes belonging to the defendants in the basement, the property of the claimant.
Clarifications: The case is suspended based on art. 36 of Law no. 85/2006.
Procedural status of the case: Merits
3. File no. 3451/108/2016 ** - Timisoara Court of Appeal
Parties: Conpet SA - defendant
ATU Pecica Town - claimant
Subject matter: ATU of Pecica town filed a request for a summons requesting:
Mainly:
- the obligation of the defendant Conpet S.A. to divert the crude oil pipeline that crosses a number of 22 plots of urban land, intended for the construction of houses, located in our property, in a total area of 20,287 sq. m.
- order the defendant Conpet S.A. to pay the amount of EUR 65,000 representing the equivalent value of the house located in plot no. A141.7760 / 5/174, entered in L.B. no. 306869 because it can no longer be capitalized by the subscriber.
In subsidiary:
- order the defendant Conpet S.A. upon payment of an annual rent, during the existence of the pipeline, as a result of the encumbrance of the areas shown above by the right of legal easement exercised by Conpet SA; NOTE: The annual rent has not been quantified.
- order the defendant Conpet S.A. to the granting of compensations for the period 31.10.2014 – 31.05.2016 as a result of the limitation of the attributes of the property right of the 22 urban land plots and of the decrease of the circulation value of the land on the real estate market due to the restrictions imposed by Order 196/2006 of NAMR on construction;
- order the defendant Conpet S.A. that every 3 years to adapt the amount of compensation to the value of circulation at that time of similar lands and the provisions of future orders of the NAMR;
- the setting by the court of the due date on which the compensations will be paid annually, following the non-payment at the due term to attract the payment of the legal interest related to the amount received as compensation for the delay period;
- award the legal expenses incurred in the event of opposition.
Clarifications: By the Conclusion of 07.12.2016, the Arad Court finds the functional incompetence of the I Civil Division of the Arad Court and declines in favor of the Civil Division II of the Arad Court, the judgment of the action filed by the claimant Territorial Administrative Unit of Pecica Town.
By the Conclusion no. 40 / 26.01.2017 The Arad Court rejects the request to show the right holder formulated by the defendant Conpet SA in contradiction with the claimant ATU of Pecica Town and with the respondents the Romanian State through the Ministry of Public Finance and the National Agency for Mineral Resources. The decision was appealed by Conpet (File no. 3451/108/2016 * / a1 - Timisoara Court of Appeal, deadline: 14.03.2017). By the Decision no. 211 / 20.03.2017 The Timișoara Court of Appeal rejects the appeal.
By the sentence no. 336 / 18.05.2017, the Arad Court rejects the civil action filed by the claimant ATU of Pecica Town in contradiction with the defendant SC Conpet SA having as subject the obligation to act and claims. No legal expenses. The decision was appealed by the ATU Pecica Town.
By the Decision no. 761 / 23.11.2017 The Timișoara Court of Appeal admits the appeal. It annuls the appealed sentence and sends the case for retrial to the Arad Court. Conpet filed an appeal.
Through the Report of 07.06.2018, the High Court of Cassation and Justice found the inadmissibility of the Conpet appeal, it being promoted against a final decision, which does not fall within the hypothesis regulated by art. 483 para. 1 Code of Civil Procedure. The parties may submit a written opinion on the report within 10 days of its communication. By the Conclusion of 10.10.2018, the HCCJ admits in principle the appeal declared by the appellant-defendant Conpet S.A. against the civil decision no. 761 / A of November 23, 2017 pronounced by the Timişoara Court of Appeal - Civil Division II. It sets a deadline for resolving the appeal on January 30, 2019. By the Decision no. 615 / 22.03.2019 The HCCJ admits the appeal declared by the appellant-defendant Conpet S.A., quashes the appealed decision and sends the case to a new court of the same court of appeal.
By Decision no. 306 / 07.06.2021 The Court rejects the appeal declared by the appellant-claimant, the Administrative Territorial Unit of the City of Pecica, against the civil sentence no. 336 of May 18th, 2017, ordered by the Arad Court in the file no. 3451/108/2016, in contradiction with the appellant-defendant S.C. Conpet S.A. With the right to appeal within 30 days from the communication.
The claimant, the Territorial Administrative Unit of the City of Pecica, filed an appeal.
By Decision no. 614/15.03.2023 the HCCJ admits the appeal declared by the appellant-claimant A.T.U. PECICA Town against the civil decision no. 306/A of June 7, 2020, pronounced by the Timişoara Court of Appeal – Civil Division II. It dismisses the appealed decision and sends the case for a new trial to the same court. Final.
Procedural status of the case: Appeal - retrial
Deadline: --
4. File no. 5413/204/2017* - Prahova Court
Parties: Conpet SA - defendant
NAMR - defendant
Dobrogeanu Dumitru - claimant
Dobrogeanu Păun Ioan - claimant
Subject matter: Claims. Dobrogeanu Dumitru and Dobrogeanu Păun Ioan filed a summons requesting the court that by the decision it will pronounce to order the obligation of the defendants to:
1. Payment of an annual rent for the land areas occupied by the two pipelines transporting petroleum products (crude oil) starting with 01.07.2014 and in the future, throughout the existence of the pipelines;
2. Obligation of the defendants to pay the losses suffered by not achieving economic objectives on the area left between the two pipelines after their restriction and the area along DN1 (E60);
3. Payment of legal expenses.
The first head of the claim was estimated by the claimants at the amount of EUR 48,000 / year (RON 220,000), and the second head at the amount of RON 25,000 / year.
Clarifications: By the Decision no. 594 / 28.02.2018 the Câmpina Courthouse admits the plea of the material incompetence of solving the case of the Câmpina Courthouse, invoked by the court ex officio. It declines jurisdiction to settle the request in favor of the Prahova Court. No appeal.
By the sentence no. 2446 / 28.08.2018 the Prahova Court admits the exception of the lack of passive procedural quality, invoked by the defendant National Agency for Mineral Resources Bucharest. It dismisses the action, in contradiction with that defendant, as being brought against a person without procedural capacity. It admits the exception of the res judicata. It dismisses the claim filed against the defendant SC Conpet SA, as there is res judicata. It finds that the defendants have not applied for legal expenses. The decision was appealed by Dobrogeanu Dumitru.
By the decision no. 2804 / 11.11.2019 the Ploiești Court of Appeal rejects the appeal filed by the appellant Dobrogeanu Dumitru as unfounded. It admits the plea of inadmissibility of the cross-appeal. It dismisses as unfounded the cross-appeal declared by the appellant Dobrogeanu Păun Ioan. The decision was appealed by Dobrogeanu Dumitru and Dobrogeanu Păun Ioan.
By Decision no. 206 / 04.02.2021, the High Court of Cassation and Justice rejects the appeal filed by the claimant Dobrogeanu Păun Ioan against the civil decision no. 2804 of November 11, 2019, pronounced by the Ploieşti Court of Appeal, Civil Division I. It admits the appeal filed by the claimant Dobrogeanu Dumitru against the same decision. It quashes the appealed decision and the civil sentence no. 2446 of August 28, 2018 of the Prahova Court and sends the case for retrial to the Prahova Court. Final.
Procedural status of the case: Merits - retrial
Deadline: 23.03.2023
5. File no. 5212/105/2018 - Ploieşti Court of Appeal
Parties: Conpet SA - defendant
Fondul Proprietatea SA - claimant
Subject matter: Fondul Proprietatea SA files an appeal requesting the court to:
1. Oblige Conpet to pay the amount of RON 734,747.04, representing the net value of the dividends related to a share of 6% of the share capital of Conpet, respectively for a number of 524,366 shares held by the claimant on the registration date of AGOA Conpet from 25.04.2007 (i.e. 05/14/2007), for the financial year of 2006,
2. Oblige Conpet to pay damages, respectively the legal interest related to the dividends from the due date of the amount requested in point 1 and until the date of filing the summons (i.e. 09.11.2018), in the amount of RON 579,015.97.
3. Oblige Conpet to pay thereafter the legal interest related to the net value of the dividends, from the date of filing the summons and until the actual payment of the requested amounts,
4. Oblige Conpet to pay the legal expenses of the present litigation
Conpet S.A. filed an impleader of the Romanian State through the Ministry of Finance and A.A.A.S.
Clarifications: By the Conclusion of 25.06.2019, the Prahova Court rejected as unfounded the impleader of the Authority for the Administration of State Assets, formulated by the defendant Conpet S.A. Conpet and the Romanian State through the Ministry of Public Finance filed an appeal against this decision of the court. By the same Conclusion of 25.06.2019, the court admitted in principle the impleader of the Romanian State through the Ministry of Public Finance, formulated by the defendant Conpet S.A. and rejected as unfounded the plea of the lack of passive procedural quality of the Romanian State through the Ministry of Public Finance. The appeal was registered with the Ploiești Court of Appeal with no. 5212/105/2018 / a2. By the decision no. 515 / 05.11.2019 the Ploiești Court of Appeal admits the plea of the inadmissibility of the appeal declared by the Ministry of Public Finance. It dismisses this appeal as inadmissible. It rejects the plea of lack of interest and the exception of inadmissibility of the appeal declared by Conpet SA. It dismisses this appeal as unfounded. Final.
By the Conclusion of 20.09.2019, the Ploiești Court of Appeal suspended the trial of the case until the settlement of the appeals made against the decision pronounced on 25.06.2019. This conclusion remained final by non-appeal.
By Sentence no. 633 / 02.06.2021 The Court unfoundedly rejects the exception of the prescription of the right to action. It admits the action. It obliges the defendant Conpet SA to pay to the claimant the amounts of RON 734,747.04 representing the value of dividends, of RON 579,015.97, representing dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 and until the actual payment of the main debit. It admits in part the impleader. It obliges the summoned in guarantee The Romanian State to pay to the defendant SC CONPET SA, the amount of RON 734,747.04, representing the value of dividends, and the legal interest related to this amount starting with 17.12.2018 and until the date of restitution to the defendant of the amount of RON 734,747.04. The decision can be appealed within 30 days from communication.
By Decision no. 814 / 01.07.2021 The Court admits the request for correction of the material error made by the claimant. It corrects the material error crept into the content of paragraph 3 of the operative part of sentence no. 633 / 02.06.2021 pronounced by the Prahova Court, in the sense that it is written: “It obliges the defendant S.C. Conpet S.A. to pay to the claimant the amounts of RON 734,747.04 representing the main debit, of RON 579,015.97, representing dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 until the actual payment of the main debit.”. It admits the request for completion of the decision made by the claimant. It orders the completion of the civil sentence no. 633 / 02.06.2021 in the sense that it also provides: It reduces to RON 70,000 the fee of the claimant's lawyer. It obliges the defendant S.C. Conpet S.A. to pay the claimant the following legal expenses: RON 20,347.63 representing judicial stamp duty, RON 4,300 expert fee, RON 8,481.87 expert fee, RON 70 lawyer's fee and RON 1,125 other expenses. It obliges the summoned in guarantee The Romanian State to pay to the defendant S.C. Conpet S.A. legal expenses in the amount of RON 16,943. With the right of appeal within 15 days from communication.
Conpet and the Romanian State through the Ministry of Public Finance filed an appeal against the substantive decision no. 633 / 02.06.2021.
Conpet filed an appeal against the material error correction decision no. 814/01.07.2021.
Conpet SA also filed a request to correct the material errors in the contents of sentence no. 633 of 02.06.2021 pronounced by the Prahova Court in the file no. 5212/105/2018, device that was the object of correcting the material error pronounced by the court by sentence no. 81 of 01.07.2021. Through the Conclusion of Correction of Material Civil Error, dated 12.09.2022, the Prahova Court admitted the request to correct the material errors of the disposition of the civil sentence no. 633/02.06.2021 and no. 814/01.07.2021, pronounced by the Prahova Court, in the file no. 5212/105/2018, formulated by SC CONPET SA, against the claimant, FONDUL PROPRIETATEA SA, against the defendant SC CONPET SA, called as guarantee by the ROMAN STATE, through the MINISTRY OF PUBLIC FINANCES. It corrects the material errors in the content of sentences no. 633/02.06.2021 and no. 814/01.07.2021 pronounced by the Prahova Court, in the sense that it is changed: It obliges the defendant S.C. Conpet S.A. to pay the claimant the amount of RON 734,747.04 representing the net value of the dividends and RON 579,015.97, representing the legal interest related to the net value of the dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 and until the actual payment of the main debit.
With right of appeal within 15 days of communication.
By the Decision no. 245/08.12.2022 the Ploiești Court of Appeal admits the exception of the inadmissibility of the appeal invoked ex officio. It rejects the appeal as unfounded. Final.
Procedural status of the case: Appeal
Deadline: 29.03.2023
6. File no. 4395/270/2020 - Onești Courthouse
Parties: Municipality of Onești - claimant
Local Council of Onești Municipality - claimant
Conpet SA - defendant
Subject matter: Onești Municipality and the Local Council of Onești Municipality, Bacău County, have sued Conpet S.A. asking the court:
"1. The obligation of the defendant at the conclusion of the agreement for the exercise of the right of legal easement over the lands with an area of 11,474.5 sq. m., crossed and affected by crude oil transport pipelines within the municipality of Onești, equivalent to the payment of an annual rent, during the existence of the pipelines, to the local budget of Onești municipality, determined according to the principle of the least violation of the property right and calculated taking into account the circulation value of the affected real estate, established under the law, at the time of the damage.
2. The obligation of the defendant to pay material damages, representing the equivalent value of the lack of use for the land in the area of 11,474.5 sq. m. crossed and affected by the crude oil pipelines within the municipality of Onești, established according to the Market Study approved by the Decision of the Local Council no. 199 of 29.11.2018, respectively according to the Updated Market Study approved by the Decision of the Local Council no. 122 of 29.06.2020, calculated starting with 2017 and until the date of concluding the agreement for exercising the right of legal easement over these lands, to which are added late fees, interest and late payment penalties in the amount provided by the Fiscal Procedures Code applicable in this period.
3. The obligation of the defendant to pay the legal expenses of the present proceedings. '
Clarifications: --
Procedural status of the case: Merits
Deadline: 09.05.2023
7. File no. 19819/303/2020 - Bucharest Court
Parties: Conpet SA - respondent
Dobrogeanu Păun Ioan - appellant
Subject matter: Dobrogeanu Păun Ioan files an enforcement appeal against the foreclosure which is the subject of the enforcement file no. 16/2017 – the Bailiff’s Office Raduta Nicoleta respectively the address for setting up the seizure of 06.11.2020, the conclusion of 06.11.2020 regarding the establishment of the additional execution expenses, notification of the seizure reduction of 06.11.2020.
Clarifications: By Sentence no. 2725 / 29.03.2021, the Bucharest District 6 Courthouse rejects the exception of connection, invoked by the appellant, as unfounded. It rejects the exception of the belatedly formulation of the appeal against the enforcement acts of 06.11.2020, as inadmissible. It admits the exception of the belatedly completing the request with new grounds of appeal, invoked by the response to the response.
It dismisses the application as inadmissible. It obliges the appellant to pay the Bailiff’s Office RADUTA NICOLETA the amount of RON 402.22 expenses for the communication of the copy of the foreclosure file. The decision was appealed by Dobrogeanu Păun Ioan.
By the Conclusion - Suspension of 18.11.2021, the court decided to suspend the trial of the case until the final settlement of the file no. 17433/303/2020.
Procedural status of the case: Appeal - suspended
Deadline: --
8. File no. 13053/303/2020 - Bucharest District 6 Courthouse
Parties: Conpet SA - respondent
Dobrogeanu Păun Ioan - appellant
Subject matter: Dobrogeanu Păun Ioan files an enforcement appeal against the foreclosure which is the subject of the enforcement file no. 16/2017 – the Bailiff's Office Răduță Nicoleta respectively the conclusion of 23.06.2021 and 25.06.2021 regarding the establishment of additional expenses, garnishment notice of 25.06.2021, address of seizure from 25.06.2021, garnishment notice of 25.06.2021. At the deadline of 25.11.2021, pursuant to the provisions of the art. 413 paragraph 1 point 1 of the CCP, the court decided to suspend the trial of the case until the final settlement of the file no. 17433/303/2020.
Clarifications: --
Procedural status of the case: Merits
Deadline: --
9. File 1926/223/2021 - Drăgășani Courthouse
Parties: Filotie Adrian - appellant
Conpet SA - respondent
Subject matter: Filotie Adrian filed an enforcement appeal against the Conclusion No. 157 of 23.07.2021 by which the Bailiff's Office Bălan Ovidiu ordered the debtor Filotie Adrian to pay the amount of RON 16552.06 representing the unpaid difference following the update of the debt with legal interest and the payment of the amount of 1800 representing enforcement expenses.
Clarifications: By Decision 840/19.10.2022, the Dragășani Courthouse admits the challenge to foreclosure filed by the appellant FILOTIE ADRIAN, in opposition to the respondent CONPET S.A. It cancels the enforcement documents drawn up by the Bailiff's Office Bălan Ovidiu in the enforcement file no. 157/2014, respectively: summons no. 157/23.07.2021, decision no. 157/23.07.2021 and the garnishment notice no. 157/23.07.2021. It obliges the respondent CONPET S.A. to pay the appellant the amount of RON 2000 in legal expenses, consisting of the lawyer's fee. It orders the return of the stamp duty in the amount of RON 1000 to the appellant FILOTIE ADRIAN, after the court decision has become final. With the right of appeal within 10 days of communication.
Procedural status of the case: --
Deadline: --
10. File 16204/302/2021 - Bucharest Court
Parties: Dobrogeanu Păun Ioan - appellant
Conpet SA - respondent
Subject matter: Dobrogeanu Păun Ioan filed an enforcement appeal against the decisions of June 22, 2021, respectively June 23, 2021 issued in the enforcement file 10/2013 of the Bailiff's Office Răduță Nicoleta.
Clarifications: By the Closing of the hearing on 19.11.2021, the Bucharest District 5 Courthouse rejects the request for suspension of the foreclosure formulated by the appellant Dobrogeanu Păun Ioan, as unfounded. With an appeal within 5 days from the communication, for the request for suspension, which is to be submitted to the District 5 Courthouse.
By the Decision 3276 of 15.04.2022, the Bucharest District 5 Courthouse admits in part the appeal to the execution. It partially cancels the conclusion of 22.06.2021 regarding the amount of 548.78, expenses for drawing up certified copies of the enforcement documents in the file no. 23204/302/2017 and the garnishment update notice of 22.06.2021 regarding the amount of RON 2874.31 representing enforcement expenses. It admits the request regarding the return of enforcement and obliges the respondent to return to the appellant the amount of RON 2874.31. The appellant is ordered to pay the Răduță Nicoleta Bailiff's Office, the sum of RON 581.91 representing the value of photocopying and attaching the enforcement file number 10/2013. Note that no legal expenses are requested. Dobrogeanu Păun Ioan filed an appeal.
Procedural status of the case: Appeal
Deadline: Ruling postponed until 17.03.2023
11. File 32805/212/2021 – Constanta Court
Parties: Safir Marius - appellant
Conpet SA - respondent
Subject matter: Enforcement appeal
Clarifications: the debtor Safir Marius filed an enforcement appeal against the enforcement documents drawn up by the Bailiff's Office Menaef Cristian, the enforcement file no. 51/2019.
By the Decision no. 12954/04.11.2022 The Constanța Courthouse rejects the enforcement appeal filed by the appellant Safir Marius in opposition to Conpet SA, as unfounded. With the right of appeal within 10 days of communication. Safir Marius filed an appeal.
Procedural status of the case: Appeal
Deadline: 23.03.2023
12. File no. 666/317/2022- Târgu Carbunești Courthouse
Parties: Balțoi Mariana - claimant
Conpet S.A. -defendant
Subject matter: Obliging Conpet to pay the claimant the amount of RON 5,000, established only for the purpose of stamping and which may be increased depending on the conclusions of the expert report, as compensation representing the value of the lack of use related to the land with an area of 268 square meters for the years 2018 -2022 and further until the file is completed, amount that will be updated on the actual payment date.
Clarifications:
Procedural status of the case: merits
Deadline: 10.05.2023
13. File no. 9097/281/2022 – Ploiesti Court
Parties: Răduță Săndica - claimant
Conpet S.A. -defendant
Subject matter: Obliging Conpet to pay the royalty in the amount of RON 945/year established by the civil decision no. 221A pronounced by the Galati Court of Appeal in the file no. 493/44/2008 updated with the inflation rate for the year prior to payment, payment to be made in the first quarter of each year.
Clarifications: By the Decision of 04.10.2022, the Ploiești Courthouse rejects the exception of the prematurity of the action, as unfounded. It rejects the exception of res judicata as unfounded. It accepts the action. It obliges the defendant Petrotel Lukoil SA to pay to the claimant the royalty established by the Civil Decision no. 221/A dated 31.08.2010, ruled by the Galati Court of Appeal in file 493/44/2008, updated with the inflation rate, starting with the year 2019, for the entire duration of the easement. It obliges the defendant Conpet SA to pay the claimant the royalty established by the Civil Decision no. 221/A dated 31.08.2010, ruled by the Galati Court of Appeal in the file 493/44/2008, updated with the inflation rate, starting with the year 2019, for the entire duration of the easement. It obliges the defendant Petrotel Lukoil SA to pay to the claimant the amount of RON 85.5 as legal expenses, representing the stamp duty. It obliges the defendant Conpet SA to pay the claimant the sum of RON 85.5 as legal expenses, representing the stamp duty. Conpet filed an appea.
Procedural status of the case: Appeal
Deadline: 12.04.2023
14. File no. 1851/120/2022 – Dâmbivita Court
Parties: Chriță Constantin, Nițescu Gheorghe, Răducanu Teodor - claimants
Conpet S.A. -defendant
Subject matter: To state that during the period of work within CONPET they fall into the 1st or 2nd work group.
Clarifications: By the Sentence no. 178/09.02.2023 The Dâmbovița Court rejects as irrelevant the exception of the lack of passive procedural quality of the defendant CONPET SA in relation to the requests made by NIȚESCU GHEORGHE and RĂDUCANU TEODOR. It admits the action in part. It finds that the claimants carried out activity working in conditions that fall within the work groups as follows: 1. the claimant CHIRIȚA CONSTANTIN carried out activity in conditions specific to the II work group, in percentage of 100%, in the periods of 17.02.1981 – 22.04.1982, 25.11.1983 – 09.11.1985 at SC AUTOMECANICA SA and 09.12.1985 – 01.03.1990 at SC CONPET SA; 2. the claimant NIȚESCU GHEORGHE carried out activity under conditions specific to the II work group, in percentage of 100%, in the period between 11.11.1982 – 09.01.1986, 11.06.1987 – 01.08.1992 at SC AUTOMECANICA SA; 3. the claimant RĂDUCANU TEODOR carried out activity under conditions specific to the II work group, in percentage of 100%, in the period between 01.03.1986-29.01.1987, 30.05.1988 – 27.11.1991 at SC AUTOMECANICA SA. It obliges the defendants to issue certificates to the claimants attesting to their placement in the work groups according to the findings above. It rejects the action in respect of the other periods. With the right of appeal within 10 days of communication.
Procedural status of the case: --
Deadline: --
15. File no. 3053/105/2022 – Prahova Court
Parties: Dumitrescu Andrei-Sebastian - claimant
COMPET SA - defendant
Subject matter: ruling a court decision in the sense of:
1. finding of partial absolute nullity of Decision A G.E.A. no. 1/10.03.2021 adopted within Conpet S.A., regarding the art. 2, the main head of request not valuable in money; 2. finding of partial absolute nullity of the A.G.E.A. Decision. no. 2/11.03.2021 adopted within Conpet S.A., regarding the art. 2, the main head of request not valuable in money; 3. obliging the defendant to pay the legal expenses caused by the current trial.
Clarifications: By the Sentence no. 80/08.03.2023 The Prahova Court rejects the request. It rejects the exception of res judicata authority, as unfounded. It reject the action as unfounded. With appeal within 30 days of communication.
Procedural status of the case: --
Deadline: --
16. File no. 5971/2/2022 - Bucharest Court of Appeal
Parties: OMV Petrom SA-claimant
N.A.M.R. -defendant
CONPET - defendant
Subject matter: The court is requested that, through the judgment that will be pronounced, it orders:
1. Regarding the Order 229/2021:
1.1. Partial annulment of art. 1 of Order 229/2021 regarding the tariffs established in the Annex 1 and Annex 3 and, accordingly, the Annexes 1 and 3 of Order 229/2021; and by way of consequence
1.2. Obliging NAMR to issue a new order for the approval of transport tariffs through the National System for the transportation of crude oil, gasoline, condensate and ethane for the year 2022, which includes tariffs modified accordingly with regard to tariffs in the COUNTRY (Annex 1) and tariffs in import for refineries in the Ploiești Basin (Annex 3), as a result of the recalculation of the tariffs included in the Order 229/2021 in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of the primary and secondary petroleum and competition legislation, as they are exposed by means of this summons;
2. Regarding Order 53/2008, the partial cancellation of art. 3-8 of the Annex to Order no. 53/2008, as well as obliging NAMR to issue a new order to properly complete the Order no. 53/2008, by reference to the following:
2.1. the method of determining in the Methodology the operating cost lacking transparency and clarity, with regard to (i) its component elements, the structure of each of these elements, not specifically provided for, along with (ii) the cost calculation algorithm of operation by referring to these elements and (iii) by taking into account only those elements that constitute, by their nature, operating costs, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;
2.2. the algorithm for determining the modernization quota that does not provide in a specific, clear and transparent manner (i) the effective percentage of the modernization quota, (ii) the basis on which it is applied, (iii) the concrete investments in order to carry out which pay the modernization quota by the beneficiaries of the transport system, (iv) the method of managing the surplus of amounts received as modernization quota and unused until the end of the financial year that were charged for the realization of investments, by taking into account these amounts in the calculation of the modernization quota that the beneficiaries must pay in the following year, by referring to the investments considered within it and such amounts available for investments carried over from previous years, as well as (v) the method of managing the bank interest collected by the holder of the concession agreement as a result of depositing the amounts received as a modernization fee and used by him, in the sense of using interest according to the same destination and taking into account these amounts in the calculation of the modernization quota that the beneficiaries must pay in the following year with this title, so that these secondary normative provisions are aligned with the requirements of art. . 20 of the Petroleum Law;
2.3. the algorithm from which does not result in a specific, clear and transparent manner (i) the method of determining the level of the rate of profit considered to be reasonable or (ii) of a profitability interval whose lower and upper limits should be established on the basis of comparative studies, by referring to the practice in the field of other comparable European transport operators, as well as (iii) specific requirements for transparent justification by CONPET of the studies to substantiate any increases in the profitability rates considered in the establishment of transport tariffs, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;
2.4. the tariff systems that are not currently focused on similar criteria and calculations for the two subsystems they regulate (i.e. the COUNTRY and the IMPORT) that meet the requirements of ensuring equal treatment between the beneficiaries of the public transport service for the two types of subsystems, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;
2.5. the procedural elements to ensure in a clear, transparent and efficient manner the right of CONPET customers to express their point of view regarding the advanced tariff proposals for approval by CONPET, based on specific documentation made available to them respectively to the revision/update requests of the rates sent by CONPET to NAMR and related documentation, as well as to receive a reasoned response from NAMR regarding the views expressed if they are not taken into account in full or in part by NAMR, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law and the transparency requirements applicable to the adoption of normative acts in compliance with the general European and national principle of good administration.
3. Ordering the defendant to pay legal expenses.
Procedural status of the case: merits
Deadline: 25.04.2023
17. File no. 1132/241/2022 – Horezu Courthouse
Parties: Podureanu Iordachi – claimant
Conpet SA - defendant
Subject matter: Podureanu Iordachi filed a summons request requesting the court that, through the judgment it will pronounce, order the increase of the periodic benefit to which Conpet SA was obliged by the civil sentence no. 337/14.03.2019, in the file no. 2646/241/2017 the decision remained final through manipulation, so that Conpet SA is obliged to pay the amount of RON 2200 as periodic compensation.
Clarifications: --
Procedural status of the case: Merits
Deadline: 23.05.2023
18. File no. 727/42/2022 – Ploiesti Court of Appeal
Parties: Gruia Gheorghe - respondent
Vasile Valentin - respondent
Ciobanu Viorel – convicted appellant
Dudaș Pavel - respondent
Tudorache Marius - respondent
Pârvu Valentin - respondent
Georgescu Anda - respondent
Manda Marin - respondent
OMV Petrom SA – respondent
SC Conpet SA – respondent
Transgaz SA National Gas Transport Company – respondent
Amuza Daniel - respondent
Subject matter: Appeal in annulment
Clarifications: By the Final Conclusion (divestiture) 06.10.2022, the Ploiești Court of Appeal orders the reunification of the case that forms the subject of the file no. 727/42/2022, to the file no. 2339/120/2022.
Procedural status of the case: Appeal in annulment - Appeal
Deadline: Ruling postponed to 17.03.2023
19. File no. 2276/110/2020 – Bacău Court
Parties: Radu Marian – claimant
Radu Elena - claimant
SC E ON Romania S.A. – defendant
Delgaz Grid S.A. – defendant
SC Trans gas S.A. Mediaș – defendant
SC Bacău Regional Water Company S.A. - defendant
SC Conpet S.A. – defendant
The General Secretariat of the Government of Romania - Victoria Palace - defendant
The Romanian State - Through the Minister of Public Finance - defendant
Subject matter: action in tort liability
Clarifications: By the Conclusion of 13.07.2022, the Bacău Court ordered the splitting of the request with the subject matter of obliging the defendants to jointly pay a monthly royalty of 5000 euros and the related tax and orders the creation of a separate file in which the claimants will be considered to prove the joint payment of a judicial stamp duty in the amount of RON 6,527.3, established according to the art. 31 paragraph (4) of GEO no. 80/2013, under the penalty of canceling the request as unstamped and pursuant to the art. 200. para. (3) of the CPC canceled the action for the remaining claims. With the right of re-examination within 15 days of communication for the cancellation solution.
Procedural status of the case: Merits
Deadline:--
20. File no. 2072/110/2022 – Bacău Court
Parties: Radu Marian – claimant
Radu Elena - claimant
SC E ON Romania S.A. – defendant
Delgaz Grid S.A. – defendant
SC Trans gas S.A. Mediaș - defendant
SC Bacău Regional Water Company S.A.. - defendant
SC Conpet S.A. – defendant
The General Secretariat of the Government of Romania - Victoria Palace - defendant
The Romanian State - Through the Minister of Public Finance - defendant
Subject matter: claims Disjointed file from 2276/110/2020 REQUEST FOR PUBLIC JUDICIAL AID
Clarifications: By the decision no. 22/22.02.2023 The Bacău Court rejects as unfounded the request for the granting of public judicial aid consisting in the granting of free legal assistance. With the right of re-examination within 5 days of communication.
Procedural status of the case: Merits
Deadline: --
21. File no. 19623/281/2022 – Ploiesti Courthouse
Parties: Nistor Tiberiu – claimant
Conpet SA – defendant
Subject matter: Appeal against enforcement
Clarifications: By the Decision no. 8393/ 24.11.2022 the Ploiești Courthouse admits the exception of the request not being stamped and consequently cancels the request as not stamped. With appeal within 10 days of communication.
Procedural status of the case: Merits
Deadline: --
22. File no. 11934/212/2022 – Constanța Court
Parties: Conpet SA – defendant
Top Vision SRL – claimant
Matei Nicolae – claimant
Subject matter: Top Vision SRL and Matei Nicolae request the obligation of Conpet SA in the form of compensation for the amount of 13,000 euros, the equivalent in RON from the date of payment, representing damage caused by their own act, respectively for the act caused by the thing under the defendant's custody, with the obligation the defendant to pay the legal expenses caused by this litigation.
Clarifications: --
Procedural status of the case: Merits
Deadline: 27.04.2023
23. File no. 4372/105/2022 – Prahova Court
Parties: Conpet SA – defendant
Eurosting AAW Industry S.R.L. claimant
Subject matter: Eurosting AAW Industry S.R.L. requests the cancellation of notification no. 14658/29.04.2021 regarding the unilateral termination of the contract for works and design services no. L-CA 252/06.08.2019, the obligation of CONPET to pay Eurosting AAW Industry S.R.L. of the amount of RON 24,395 representing the counter value of the design services related to stage I of the works contract no. L-CA 252 of 06.08.2019. Obliging CONPET to pay legal expenses.
Clarifications: --
Procedural status of the case: Merits
Deadline: 02.05.2023
24. File no. 7035/2/2022 - Bucharest Court of Appeal
Parties: OMV Petrom SA- claimant
N.A.M.R. -defendant
CONPET - defendant
Subject matter: The court is requested that, through the decision that will be pronounced, it orders:
1. Partial annulment of the art. 3 of Additional Act no. 2 regarding the tariffs on the COUNTRY subsystem and the IMPORT subsystem charged for the transport services provided by Conpet and established by the Order no. 229/2021, within the limit of the amount of tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with NAMR; 2. Partial annulment of the art. 1 and 4 of Additional Act no. 2, 6 and 9, respectively of art. 1 and 3 of Additional Acts 3, 4, 5, 7 and 8 by which the duration of the Transport Contract was extended for the period 01.01.2022 - 31.08.2022 with the application of the new tariffs approved by the Order 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with NAMR and, as a consequence, 3. The obligation of CONPET to pay to the Company, as compensation as a result of the partial cancellation of the Additional Acts, but also its illegal act of providing erroneous data that was the basis of the tariff development process by NAMR based on the Order no. 229/2021 and then upon their payment by the Company based on the Additional Acts, of the amounts representing: (i) the difference between the amount of the tariffs provided for in the Additional Act no. 2 to the transport contract, concluded as a result of the new tariffs adopted by the Order 229/2021, paid by the Company in the period 01.01.2022 – 31.08.2022 as a result of the extension of the contractual period through the Additional Acts and the amount of the tariffs that will be established as legal in the result of the administrative litigation proceedings carried out by the Company regarding them with NAMR, updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference; (ii) the difference between the amount of tariffs paid by the Company for the transport of crude oil, through the COUNTRY subsystem, from the Midia Terminal, and the amount of the tariffs set proportionally, by reference to the COUNTRY and IMPORT tariffs depending on the subsystem actually used for the transport of marine crude oil, updated in depending on the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the COUNTRY subsystem was illegally calculated and paid: -13,905 tons from the art. 2 letter a) from Additional Act no. 4 for March 2022; -13,171 tons from the art. 2 letter a) from Additional Act no. 5 for April 2022; 13,307 tons from the art. 2 letter a) from Additional Act no. 6 for May 2022; 12,633 tons from the art. 2 letter a) from Additional Act no. 7 for June 2022; -12,072 tons from the art. 2 letter a) from Additional Act no. 8 for July 2022; -12,900 tons from the art. 2 letter a) from Additional Act no. 9 for August 2022; (iii) any other amounts representing civil fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs; 4. Obligation to pay legal expenses.
Procedural status of the case: Merits
Deadline: 26.04.2023
25. File no. 5262/105/2022 - Prahova Court
Parties: CONPET SA - defendant
Bulgarian Marius Viorel – claimant
SC Petrotel Lukoil SA - defendant
Subject matter: Declaratory action. It requests that the court finds that during the period of work at Conpet, the activity carried out by the claimant falls under the 1st work group.
Procedural status of the case: Merits
Deadline: 16.05.2023
26. File no. 4838/105/2022 - Prahova Court
Parties: CONPET SA - defendant
FABI TOTAL GROUP - claimant
Subject matter: Declaratory action. The claimant asked the court to find the occurrence of an unforeseeable cause and consequently order the termination of the Supply Contract no. P-CA 2021/20/26.02.2021 (P-CA 163/15.04.2021) from the date of the filing of the action and the exemption from the payment of any compensatory damages and/or moratorium damages provided for in the contract.
Procedural status of the case: merits
Deadline: 28.03.2023
27. File no. 5074/105/2022 - Prahova Court
Parties: CONPET SA - defendant
Ionescu Aurel - claimant
Subject matter: Declaratory action. Ionescu Aurel filed a summons request in which he requested the following from the court:
- To state that in the period 01.04.1992 - 01.04.2001 the claimant was employed and that he actually worked 100% of the work schedule within the sections included in the I work group, IN ACCORDANCE with the Order 50/1990, the Order 100/1990 and of the Order 125/1990;
- Subsidiarily, in the situation where the first head of the claim will be accepted, he requested the court to establish the placement in the I work group and in the period 01.04.2001 - 15.06.2021, the claimant remaining in the same position and under the same working conditions ;
- Obliging CONPET to draw up and issue a certificate attesting that the activity provided by the claimant falls under the I work group and the percentage in which he carried out his activity.
- Obliging CONPET to pay the legal expenses caused by this claim.
Clarifications: --
Procedural status of the case: merits
Deadline: 11.04.2023
28. File no. 54856/299/2022 - Bucharest District 1 Courthouse
Parties: CONPET SA – garnishee
The Authority for the Administration of State Assets - appellant
Subject matter: Appeal against enforcement.
Procedural status of the case: merits
Clarifications: By the Decision of 09.03.2023, the Bucharest District 1 Courthouse rejects the action filed against the garnishees, CONPET S.A. and SEMROM OLTENIA S.A., as being formulated against persons without passive procedural status. It admits, in part, the appeal to enforcement formulated by the appellant AUTHORITY FOR THE ADMINISTRATION OF STATE ASSETS -A.A.A.S., in opposition to the respondent EUXIN S.A. It cancels the garnishment notice issued on 11.10.2022 by the Bailiff’s Office Gonţ, Panait and the Associates in the enforcement file no. 889/2013. It rejects the request for the suspension of foreclosure, as having become devoid of purpose. It rejects the request for the invalidation of the foreclosure, as unfounded. It rejects the rest of the request as unfounded. It obliges the appellant to pay the Bailiff’s Office Gonţ, Panait și the Associates the amount of RON 748.51, representing the consideration for copying the enforcement file. With the right of appeal within 10 days of communication; the request for the exercise of the right of appeal is to be submitted to the Bucharest District 1 Courthouse.
Deadline: --
29. File no. 4864/3/2023 – Bucharest Court
Parties: CONPET SA – respondent
Dobrogeanu Păun Ioan – appelant
Subject matter: Annulment appeal against the civil decision no. 2688/08.11.2022 pronounced in the Decision no. 17433/303/2020 of TBS5 electronic file.
Procedural status of the case: appeal
Deadline: 17.03.2023
c) The list of files pending before Courts on 03/15/2023 in which the company CONPET S.A. has double status
1. File no. 378/105/2007 - Prahova Court
Parties: Conpet S.A. - claimant-defendant
Petroconduct S.A. – defendant - counterclaimant
Subject matter: Conpet S.A. requests the obligation of the defendant Petroconduct S.A. Ploiesti at:
- payment of the amount of RON 80,548.49 representing penalties for non-execution on time of the obligations assumed by the contract no. L 45/18.03.2004 and the contract no. M 59/9.06.2004
- delivery of the tubular material composed of China steel pipe in the quantity of 504 in the amount of EUR 21,344.4 and China steel pipe in the quantity of 96 m in the amount of EUR 4,366.08 or upon payment to our company of its equivalent value, i.e. the amount of RON 89,291.50.
- payment of the amount of RON 20,626 representing transport, loading, unloading expenses for the tubular material
- payment of the legal expenses in the amount of RON 5,062.24, of which RON 5,057.24 judicial stamp duty and RON 5.00 judicial stamp as well as other legal expenses that we will incur in this proceedings.
Petroconduct S.A. filed a counterclaim requesting the obligation of Conpet SA to pay the amount of RON 46,214.01, representing the equivalent value of the works executed by it based on the works execution contracts no. L 45/18.03.2004 and no. MST 09/09.06.2004, in favor of the beneficiary Conpet SA.
Clarifications: On 22.02.2010, based on the art. 36 of Law no. 85/2006, the court ordered the suspension of the case.
Procedural status of the case: Merits
Deadline: Suspended
2. File no. 1372/212/2017* - Constanța Court of Appeal
Parties: Conpet SA – defendant - counterclaimant
Cruceanu Alin Florinel - claimant-defendant
Subject matter: Cruceanu Alin Florinel filed a request for a summons requesting the court to order:
- the obligation of Conpet SA to pay compensations equal to the market value of the land building with an area of 460 sq. m. located in Lazu commune, Luceafărului street no. 29, Constanța county and of the land building with an area of 460 sq. m. located in Lazu commune, Luceafărului street no. 31, Constanța county, the equivalent value estimated at EUR 30,000, the equivalent in RON 134,700;
- the obligation of Conpet SA to pay the equivalent value of the lack of land use in the form of an annual rent for the last three years;
- the obligation of Conpet SA to pay the legal expenses of settling the present request.
The claimant subsequently set out his action on the second head of claim, claiming that the court should:
- order Conpet SA to pay the amount representing the non-use of the two land buildings for the period between 10.12.2015 and the date of finality of the decision by which the first head of the claim was admitted.
The lack of use was provisionally assessed for stamping in the amount of RON 5,000.
Conpet filed a counterclaim requesting:
- The obligation on the claimant to allow Conpet S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the two lands owned by the claimant Cruceanu Alin Florinel, located in Agigea commune, Lazu village, Luceafărului street no. 29 and 31, respectively, Constanța County. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the main crude oil transport pipeline Ø 20 ˝ Constanța-Bărăganu for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and execution of any repair works.
- Establishing the amount of the annual rent provided by law owed by us to the claimant in exchange for exercising the right of legal easement.
Conpet also filed an impleader request with the Ministry of Public Finance and the National Agency for Mineral Resources (N.A.M.R.) that if Conpet S.A. Ploiești will fall into claims regarding the claimants' claims made in the summons to compensate us with the amounts we will be obliged to pay to the claimants.
Clarifications: By the Civil Sentence no. 8561 / 14.07.2021 the Constanța Courthouse rejects, as unfounded, the pleas of the lack of passive procedural quality regarding the defendants CONPET SA, the ROMANIAN STATE THROUGH THE MINISTRY OF PUBLIC FINANCE, THE NATIONAL AGENCY FOR MINERAL RESOURCES and the MINISTRY OF ENERGY. It rejects as unfounded the pleas of the lack of passive procedural quality regarding the impleaders MINISTRY OF PUBLIC FINANCE, NATIONAL AGENCY FOR MINERAL RESOURCES. It admits the request formulated by the claimant CRUCEANU ALIN FLORINEL, against the defendants CONPET SA, the ROMANIAN STATE THROUGH THE MINISTRY OF PUBLIC FINANCE, THE NATIONAL AGENCY FOR MINERAL RESOURCES and the MINISTRY OF ENERGY. It obliges the defendants, jointly and severally, to pay to the claimant the amount of RON 184,700 representing the market value of the land building with an area of 460 sq m located in Lazu Commune, 29 Luceafărul Street, Constanța County and the market value of the land building with an area of 460 sq m located in Lazu Commune, 31 Luceafărul Street, Constanța county. It obliges the defendants, jointly and severally, to pay to the claimant the amount of RON 22,164 representing the equivalent value of the lack of land use between 10.12.2015 -10.12.2018. It rejects, as unfounded, the request for impleader formulated by CONPET SA against the MINISTRY OF PUBLIC FINANCE. It rejects, as unfounded, the request for impleader made by CONPET SA against the NATIONAL AGENCY FOR MINERAL RESOURCES. It rejects, as unfounded, the counterclaim formulated by CONPET SA against CRUCEANU ALIN FLORINEL. It obliges the defendants jointly and severally to pay to the claimant the legal expenses in the amount of RON 8414.28 represented by the stamp duty and the expert's fee. With the right to appeal within 30 days from the communication.
Conpet, N.A.M.R.., the Romanian State through the Ministry of Public Finance and Cruceanu Alin filed an appeal.
By the Conclusion no. 1548 / 07.10.2021, the Constanta Court admits the exception of the material procedural incompetence of the Civil Section I of the Constanta Court. It declines the competence to resolve the appeal in favor of the Second Civil Section of the Constanţa Court. No appeal.
By the decision no. 1003 of 08.07.2022, the Court rejects, as unfounded, the appeal filed by the appellant CRUCEANU ALIN-FLORIN in opposition to the respondent defendants CONPET S.A., the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE, THE NATIONAL AGENCY FOR MINERAL RESOURCES and the MINISTRY OF ENERGY, against the Civil Sentence no. 8561/14.07.2021, ruled by the Constanţa Courthouse in the File no. 1372/212/2017. It admits the appeal filed by the claimant appellants: the NATIONAL AGENCY FOR MINERAL RESOURCES, ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCES through the GALATI REGIONAL DIRECTORATE OF PUBLIC FINANCES – CONSTANTA COUNTY ADMINISTRATION OF PUBLIC FINANCES and CONPET S.A. It changes in part the Civil Sentence 8561/14.07.2021, pronounced by the Constanţa Courthouse in the File no. 1372/212/2017, as follows: It admits the exception of the lack of passive procedural capacity of the defendants, the NATIONAL AGENCY FOR MINERAL RESOURCES and the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE - regarding the summons request. It rejects the summons request filed by the claimant CRUCEANU ALIN-FLORIN against the defendants THE ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE and the NATIONAL AGENCY FOR MINERAL RESOURCES, as being filed against persons without passive procedural standing. It rejects, as unfounded, the summons request filed by the claimant CRUCEANU ALIN-FLORIN against CONPET S.A. It rejects, as having become devoid of purpose, the request for summons in the guarantee formulated by the defendant CONPET S.A. against the NATIONAL AGENCY FOR MINERAL RESOURCES and the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE. It admits the counterclaim filed by the defendant CONPET S.A. against the claimant CRUCEANU ALIN-FLORIN. It establishes in favor of CONPET S.A. an easement right in a total area of 81 square meters on the claimant's lands located in Lazu Commune, Luceafărului street no. 29 and in Lazu Commune, Luceafărului street no. 31, consisting of the right of use over an area of 2.4 meters wide placed along the crude oil pipeline that undercuts the claimant's land, as identified by the expert Datcu Dumitru through the Annex to the Response to objections (f.229 vol. 2 from the file of the Constanța Courthouse) - blue hatch. It establishes the annual rent owed by the defendant to the claimant in the amount of RON 693. It forces the claimant CRUCEANU ALIN-FLORIN to pay the defendant CONPET S.A. the amount of RON 3853.75 as legal expenses, representing: RON 1704 judicial stamp duty paid to the merits, RON 649.75 judicial fee for the appeal, RON 500 topographic expert's fee and RON 1000 lei agricultural expert's fee. The claimant CRUCEANU ALIN-FLORIN filed an appeal;
Procedural status of the case: Appeal
Deadline: 22.03.2023
3. File no. 18344/212/2017 - Constanța Courthouse
Parties: Conpet SA – defendant - counterclaimant
Mitu Dumitru – claimant - defendant
Mitu Rodica – claimant - defendant
Subject matter: Obligation to do. Mitu Dumitru and Mitu Rodica file a summons requesting Conpet's obligation to pay compensations for the two plots of land with an area of 4,972 sq. m. and 4,977 sq. m. respectively located in Lazu village, Agigea commune, Constanța county affected by the route of some pipelines transporting petroleum products, as well as obliging the defendant to pay an annual rent for the lack of use on the land affected by the exercise of the right of legal easement , starting with 20.06.2014 and compensations in the form of an annual payment for affecting the use of part of the land on which the pipeline is not located, with the obligation to pay the legal expenses.
The claimants assessed the claims brought before the court in the amount of RON 10,000 in order to stamp the request, showing that after establishing the values by the expertise that they will administer in the case, to pay the difference of judicial fee.
Conpet filed a counterclaim requesting the court:
1. To order the claimants to allow Conpet S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the two plots of land owned by the claimants. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the main crude oil transport pipeline F2 Ø 20 ˝ Constanța-Bărăganu for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and execution of possible repair works.
2. To establish the amount of the annual rent provided by law due by Conpet to the claimants in exchange for exercising the right of legal easement.
Conpet also filed an impleader request with the Ministry of Public Finance and the National Agency for Mineral Resources (N.A.M.R.) that if Conpet S.A. Ploiești will fall into claims regarding the claimants' claims made in the summons to compensate us with the amounts we will be obliged to pay to the claimants.
Procedural status of the case: Merits
Deadline: Ruling postponed to 23.03.2023
4. File no. 2323/120/2018 - Ploiești Court of Appeal
Parties: Conpet SA - defendant - counterclaimant
Buzatu Florin - claimant - defendant
Subject matter: Buzatu Florin files a request for a summons requesting the court:
1. To oblige the defendant Conpet SA to pay the claimant the amount of EUR 150,000, payable at the NBR exchange rate on the day of payment (amount to be revalued on completion of the real estate assessment expertise report to be carried out in the probation case, to be resized and specified the value of the claims, corroborated with the appropriate adjustment of stamp duties), representing fair and equitable compensation for the damage suffered by restricting the possibility of exercising its property right over the land area of 5980 sq. m. located in the built-up area of Slobozia Moară locality, Dâmbovița county, with cadastral number 70618, registered in the land book 70618 / ATU Slobozia Moară Dâmbovița county, on which are the underground gas pipelines and above-ground devices owned by the defendant, a land which cannot be used for building;
2. To oblige the defendant Conpet SA to pay a monthly indemnity of EUR 1,000 payable at the NBR exchange rate on the day of payment, starting with the date of the sentence, throughout the existence of underground pipelines and above-ground devices, buildings on the land owned by the claimant and to bear all the costs incurred by the claimant for the stages prior to the construction permit;
3. In the alternative, claims that the defendant should erect all the buildings built on the claimant's property, namely the gas pipelines and the above-ground devices, to restore the land to its original condition or to enable the claimant to carry out the obligation to do so, at the defendant's sole expense;
4. To order the defendant Conpet SA to pay the legal expenses incurred in the present legal proceedings.
Conpet filed a counterclaim requesting the obligation of the claimants to allow our company to exercise the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 and the establishment of the amount of the annual rent provided by law due by Conpet to the claimants in exchange for exercising the right of legal easement.
Clarifications: By the Decision 602 / 10.03.2022 The Dâmbovița Court rejects the exception of the lack of passive procedural capacity of the defendant-claimant Conpet S.A. as regards the claims for compensation and indemnity raised by it. It admits the claimant Conpet S.A.'s lack of passive procedural capacity. As regards the head of claim concerning the obligation to raise the above-ground pipes and devices and to restore the land to its original condition or to empower the applicant to do so, invoked by it and consequently rejects that head of claim in contradiction with the defendant-claimant Conpet S.A. as being formulated against a person without passive procedural capacity. It admits in part the summons. It admits in part the counterclaim. It obliges the defendant claimant to demolish the construction without authorization (foundation) existing on the land belonging to him, with no. cadastral 70618, registered in the land book no. 70618 of the Slobozia Moară ATU, Dâmbovița county, identified according to the sketch drawn up in the expertise report in the topography specialty dated 04.11.2019 (f. 300 vol. I). It establishes the amount of the annual rent due by the claimant defendant to the defendant claimant for exercising the right of legal easement on the land with an area of 890 sqm related to crude oil pipelines O 143/4 and O 123/4, identified according to the sketch prepared in the expertise report of 02.11.2019 (f. 357 vol. I), at the amount of RON 284.8 and obliges the claimant defendant to pay it to the defendant claimant starting with the date of the finality of the present sentence. It dismisses the remainder of the action and the counterclaim. It rejects the request to show the right holder formulated by the claimant defendant in contradiction with the Romanian State, through the Ministry of Public Finance and the National Agency for Mineral Resources. It orders the refund to the claimant defendant of the stamp duty paid and not owed in the amount of RON 1,143.4. It compensates the expenses up to the amount of RON 1,172.7 and obliges the defendant claimant to pay to the claimant defendant the uncompensated difference of RON 836 legal expenses. Buzatu Florin filed an appeal.
By the Decision no. 482/09.03.2023 The Ploiesti Court of Appeal rejects the appeal as unfounded. With appeal within 30 days of communication.
Procedural status of the case: --
Deadline: --
5. File no. 1122/284/2019 - Dâmbovița Court
Parties: Sotir Mădălina Rebeca - claimant
Conpet SA - defendant
Subject matter: Sotir Mădălina Rebeca filed a summons requesting the court to oblige Conpet SA to compensate her with the amount of EUR 25,000 for the land area of 523 sq. m., construction yard category, land surface of the claimant located in Cojasca commune, Dâmbovița county having the cadastral no. 72587, undercrossed by the Conpet pipeline.
Conpet SA filed a counterclaim requesting:
1. Obligation on the claimant Sotir Mădălina Rebeca to allow CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the land owned by her, located in Cojasca commune, Cojasca village, Dâmbovița County. The exercise of the right of legal easement is to be carried out on a 2.4 meter wide corridor located along the main crude oil transport pipeline Ø 14 3 / 4˝ Cartojani-Teleajen Refinery (Lukoil) for the purpose of permanent access to the pipeline in order to daily checking of the condition of the pipeline and execution of any repair works. The exercise of the right of easement is to be carried out throughout the existence of the pipeline located on the claimant's land but not later than the date of termination of the oil concession agreement concluded by us, the undersigned CONPET S.A., with the Romanian State.
2. Establishing the amount of the annual rent provided by law due by us, the undersigned CONPET SA, to the claimant Sotir Mădălina Rebeca in exchange for exercising the right of legal easement starting with the date of finality of the decision pronounced in the present case, rent consisting in the equivalent value of the annual use of the land under the exercise of easement.
Clarifications: By the Conclusion of 25.09.2019, the Răcari Courthouse rejected the plea of the lack of passive procedural capacity of Conpet SA. It admitted the plea of the lack of passive procedural capacity of the National Agency for Mineral Resources (N.A.M.R.).
By the Decision no. 1734 / 03.12.2021 The Răcari Courthouse partially admitted the request for summons filed by the claimant-defendant Sotir Mădălina Rebeca, against the defendant-claimant CONPET SA, summoned as impleader being the Romanian State, through the Ministry of Public Finance, and the National Agency for Mineral Resources. It obliges the defendant-claimant to pay to the claimant-defendant the amount of 3504 euros representing compensations for the lack of use of the land building, with an area of 523 sqm, registered in the land book no. 72587 of Cojasca locality, Dâmbovița county. It admits the request for impleader of the Romanian State, through the Ministry of Public Finance, formulated by the defendant-claimant. It obliges the impleaded person to pay to the defendant-claimant the amount of 3504 euros representing compensations due by the defendant-claimant to the claimant-defendant for the lack of use of the land, in the area of 523 sqm, registered in the land book no. 72587 of Cojasca locality, Dâmbovița county. It admits the counterclaim filed by the claimant defendant Conpet S.A. against the claimant-defendant Sotir Mădălina Rebeca. It obliges the claimant-defendant to allow the access of CONPET SA, on the land owned by the former, located in Cojasca commune, Cojasca village, Dâmbovița county, on a 2.4 meter wide corridor, located along the main crude oil transport pipeline with a diameter of 14 3/4 ”, Cartojani-Teleajen Refinery (Lukoil), for the purposes provided by the provisions of art. 7 et seq. of Law no. 238/2004, throughout the existence of the pipeline located on the claimant's land, but not later than the date of termination of the oil concession agreement concluded by CONPET S.A. with the Romanian State. It obliges the defendant-claimant to pay to the claimant-defendant an annual rent of 14.5 euros, in exchange for the right of access on the land, from the date of finality of the decision until the date of termination of the concession agreement. It obliges the defendant-claimant to pay to the claimant-defendant the amount of RON 3855 representing legal expenses. It obliges the claimant-defendant to pay to the defendant-claimant the amount of RON 2020 representing legal expenses. It compensates the legal expenses owed to each other by the defendant-claimant and the claimant-defendant, and in the end the defendant-claimant will pay the claimant-defendant the amount of RON 1835. With appeal within 30 days of communication.
Sotir Mădălina Rebeca and the Ministry of Public Finance filed an appeal against this decision.
By the Decision 381/26.05.2022 the Dâmbovița Court rejects as unfounded the appeals made by the defendant claimant Conpet S.A. and the impleader the Romanian State through the Ministry of Public Finance against the decision of 25.09.2019 issued by the Răcari Courthouse. It admits the appeals filed by the defendant claimant Conpet S.A. and the impleader Romanian State through the Ministry of Public Finance against the civil sentence no. 1734 of 03.12.2021. It dismisses the appeal filed by the defendant claimant Sotir Mădălina Rebeca as unfounded. It changes the sentence in part, in the sense that it rejects the application for summons and the application for collateral summons as unfounded and removes the provisions regarding the obligation of the claimant defendant to pay the legal expenses and regarding the compensation of expenses. It upholds the conclusion and the rest of the appealed sentence. It orders the appellant claimant defendant, Sotir Mădălina Rebeca, to pay the appellant defendant, Conpet S.A., the amount of RON 152.5 legal expenses. With the right of appeal within 30 days from the communication.
Procedural status of the case: --
Deadline: --
6. File no. 18792/281/2019 - Prahova Court
Parties: Conpet S.A. - claimant
Andex Import - Export S.R.L. - Defendant
Subject matter: Conpet is suing the company Andex Import - Export S.R.L. so that by the decision that the court will pronounce, it will order:
1. The obligation of the defendant Andex Import - Export S.R.L. upon payment to Conpet S.A. of the amount of RON 46,176.27 representing damages in the amount of 20% due according to art. 16 of the service contract no. S-CA 97/15.03.2018, following the unilateral termination of the contract due to the fault of the defendant;
2. The obligation of the defendant Andex Import - Export S.R.L. upon payment to Conpet S.A. of the penalties in the amount of RON 2,123.62, due by the defendant in accordance with the provisions of art. 15.1 (1) and art. 15.2 of the contract for the non-execution in whole or in part of the collection, transport and temporary storage services from the locations of Conpet S.A. sent through orders between August 2018 and December 2019, according to Annex 2;
3. The obligation of the defendant to pay the legal expenses.
Andex Import - Export S.R.L. filed a counterclaim requesting the obligation of Conpet S.A. to:
1. the refund of the amount of RON 22,704.89, representing a guarantee of good execution constituted by SGB and executed abusively by Conpet on the date of notification of the unilateral termination;
2. the payment of the amount of RON 10,000 (plus VAT) representing the value of the services provided under the contract and not paid by Conpet S.A.;
3. the payment of the amount of RON 25,000 as damages, representing the damage caused by Andex Import-Export S.R.L. (unrealized benefit) as a result of the abusive termination of contract no. S-CA 97/15.03.2018.
Clarifications: By the Sentence no. 7008/06.11.2020 the Ploiești Courthouse admits the main request, obliges the defendant to pay to the claimant the amount of RON 46,176.27, representing damages and to pay the amount of RON 2,123.62, representing delay penalties. It dismisses the counterclaim as unfounded. It obliges the defendant to pay to the claimant the amount of RON 2,143.29 representing legal expenses, respectively equivalent to the judicial stamp duty. The decision was appealed by Andex Import - Export S.R.L..
By Decision no. 1863 / 30.06.2021 The Prahova Court rejected the appeal of Andex Import - Export S.R.L., as unfounded. With the right to appeal within 30 days from the communication, which will be submitted to the Prahova Court.
Procedural status of the case: --
Deadline: --
7. File no. 5022/270/2020 - Onești Courthouse
Parties: Bacău Regional Water Company S.A. - Claimant
Radu Marian - Defendant counterclaimant
SC E.On Energie România S.A.-Counterclaimant
SC Delgazgrid S.A. - Counterclaimant
SC Transgaz S.A. - Counterclaimant
SC Conpet S.A. - Defendant and counterclaimant
General Secretariat of the Government of Romania - Counterclaimant
Romanian State by the Ministry of Public Finance - Counterclaimant
Subject matter: We render the subject of the counterclaim filed by the defendant Radu Marian
By counterclaim, the defendant Radu Marian requested the obligation of the claimant and the other counterclaimants, including our undersigned Conpet S.A., to:
1. "the prior purchase of the free right of way, because we had no advantage, no favor, but only suffered, caused us only inconvenience and damage, although all were obliged not to aggravate the situation of the servient tenement, not to cause damage to the owner of the servient tenement by the exercise of the easement , but on the contrary to contribute to its preservation and even to improve it, they were obliged to conclude an agreement or expropriation for all the real estate mentioned, taking into account that all the property mentioned is in the aisle of construction which is of public utility established in accordance with the laws mentioned, the constructions were carried out with their consent, but after a fair and prior compensation inclusive with the payment of claims, compensations invoked until the moment of effective expropriation or real estate exchange of value equal to the claimed amount, if it suits us, or even other options if they are convenient for us… we formulate a counterclaim against the claimant and we sue the claimant and the following defendants in tort proceedings. ”
2. “The obligation of the defendants to move the transport networks located on its property, to another location, at a distance of min. 20m from the limits of our property, at their expense and until the network is moved, demand the immediate cessation of transport on these infrastructures until they agree to pay the damages and will guarantee that in case of damage resulting in material or human damage, they will accept our claims and will compensate us immediately without further comments."
3. "The obligation of the defendants to bring the land in the state it was in before, the dismantling of the manifold illegally placed by Transgaz".
4. "The obligation of the parties jointly and severally to pay compensation of EUR 1,000,000 (one million) in this case for infringement of fundamental rights and freedoms, for all criminal activity carried out to date and for all material and non-material damage caused, plus a monthly fee of EUR 5,000 (five thousand) and the tax to be paid to the state for this fee for each defendant, injured party, respectively for me and my wife, in the amount valid at the time of filing this counterclaim, summons in tort proceedings, at the Onești Courthouse, at the Bacău Court, for every month since 1990 when we became owners of the first plot of land and the claimant and the other defendants transport on these transport networks, illegally located on our property until present, a value that in the future requires to have a periodic indexation ex officio, equal to the coefficient of the minimum wage, as a reference index and to be transmitted to our descendants who will own these goods (buildings, land, everything on them, etc.) after our death, as long as these transport networks exist."
5. "The obligation of the defendants that in case of damages resulting in material, moral or human damages to compensate us in advance for the repair of damages, both for damages caused by failures and for damages caused during the repair of failures. We also claim compensation for damages caused by previous damages and their repair, as well as prior compensation for damages caused by current damages and those caused by their repair."
6. "The obligation of the claimant and the defendants to pay the legal expenses or, in the absence of such legal possibility, pursuant to Article 90 (1) and (2) (a) (b) and (c) and paragraph 3 of the Code of Civil Procedure, I request legal assistance under the conditions of the special law on public legal aid, namely the granting of exemptions both for the payment of this stamp duty and any fees during the entire case until the payment of damages, because we have no material possibilities to support this civil case without endangering our own livelihood and that of our family.”
Conpet filed a counterclaim in this case, requesting the court:
1. To order the claimants Radu Marian and Radu Elena to allow CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the arable land outside the town, their property, located in the city of Tg. Ocna, Progresului street, no. 6, Bacău County. The exercise of the right of legal easement is to be done on a corridor 2.4 meters wide located along the crude oil transport pipeline Ø 10 3 / 4˝ Vermești - Tg. Ocna, for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and the execution of any repair works. The exercise of the right of easement is to be carried out throughout the existence of the pipeline located on the claimants' land but not later than the date of termination of the oil concession agreement concluded by us, signed by CONPET S.A., with the Romanian State.
2. To establish the amount of the annual rent provided by law due by us, subscribed by CONPET SA, to the claimants Radu Marian and Radu Elena in exchange for exercising the right of legal easement starting with the date of finality of the sentence in this case, rent consisting of the annual use for the land affected by the exercise of the easement.
At the same time, Conpet also formulated in the case a Request to show the holder of the right by which I indicated as holder of the property right over the crude oil transport pipeline Ø 10 3 / 4˝ Vermești - Tg. Ocna with inventory number 120036/P.I.F. 1952 located on the arable land outside the town of the claimants Radu Marian and Radu Elena located in the city of Tg. Ocna, Progresului street, no. 6, Bacău County, Romanian State represented by: Ministry of Public Finance, headquartered in Bucharest, Apolodor Str., no.17, District 5, and the National Agency for Mineral Resources, headquartered in Bucharest, Dacia Boulevard, no. 59, district 1.
Clarifications: By the Conclusion of 03.11.2021, the Onești Courthouse admitted the exception of the inadmissibility of the counterclaim formulated by the defendant Radu Marian against the defendants E.On Energie România SA, Delgazgrid SA, Transgaz SA, Conpet SA, the General Secretariat of the Romanian Government and the Romanian State through the Ministry Public Finance, motivated by the fact that the conditions of art. 209 para.1 of the Code of Civil Procedure, and will reject the counterclaim regarding these defendants, motivated by the fact that the claims of the defendant Radu Marian in contradiction with these 6 defendants do not derive from the same legal relationship and are not closely related to the claim brought before the court by the lawsuit. However, the 6 defendants will also appear in the Ecris program on the summons. The court finds that this trial will be between CRAB Bacău and Radu Marian - the main claim and the counterclaim. All the exceptions and requests invoked by the 6 defendants will no longer be questioned, compared to the solution of admitting the exception of inadmissibility of the counterclaim in contradiction with these defendants.
By the Civil Sentence no. 505/30.03.2022, the Onești Courthouse admitted the request made by the claimant S.C. BACĂU REGIONAL WATER COMPANY S.A., against the defendant RADU MARIAN. It obliges the defendant to allow intervention teams access to the land owned by him, located in the town of Târgu Ocna,.... for the performance of intervention works for retrofitting, repairs, revisions, removal of damages to the water pipe that undercuts the defendant's land. It finds that the exception of the inadmissibility of the counterclaim filed by the defendant, the counterclaimant, RADU MARIAN, against the defendants S.C. E.ON ENERGIE ROMANIA S.A., DELGAZGRID S.A., TRANSGAZ S.A., CONPET S.A., THE GENERAL SECRETARIAT OF THE GOVERNMENT OF ROMANIA and the ROMANIAN STATE THROUGH THE MINISTRY OF PUBLIC FINANCE. It rejects as inadmissible the counterclaim filed by the defendant, the counterclaimant, RADU MARIAN, against the defendants S.C. E.ON ENERGIE ROMANIA S.A., DELGAZGRID S.A., TRANSGAZ S.A., CONPET S.A., THE GENERAL SECRETARIAT OF THE GOVERNMENT OF ROMANIA and the ROMANIAN STATE THROUGH THE MINISTRY OF PUBLIC FINANCE. It rejects the exception of the lack of passive procedural capacity of the claimant defendant S.C. BACĂU REGIONAL WATER COMPANY S.A. invoked by it through the response to the counterclaim. It rejects as unfounded the counterclaim filed by the defendant counterclaimant, RADU MARIAN, against the claimant defendant, S.C. BACĂU REGIONAL WATER COMPANY S.A. The public judicial aid that the defendant Radu Marian benefited from remains the responsibility of the state. With appeal within 30 days of communication. The appeal request is submitted to the Oneşti Courthouse.
Conpet filed a request to supplement the Civil Sentence no. 505/30.03.2022.
By the Decision no. 1353/10.08.2022 Onești Courthouse admitted the request to complete the device formulated by CONPET S.A. and completed the device and minutes of the civil sentence no. 505/30.03.2022 pronounced in the file no. 5022/270/2020 by the Onești Courthouse, in the sense that the ruling will mention the solution given to the request regarding the granting of legal expenses incurred by the petitioner: "It orders the defendant Radu Marian to pay .... and the defendant CONPET S.A. the amount of RON 40, as legal expenses, representing the judicial stamp duty." With right of appeal within 30 days from the date of communication.
Procedural status of the case: --
Deadline: --
8. File no. 1657/91/2020* - Vrancea Court
Parties: Vasile Maria Ilaria - at S.C.P.A. Buruian, Caracaş and Associates - Claimant
Dragu Georgeta - the S.C.P.A. Buruian, Caracaş and Associates - Claimant
The company Conpet SA Ploieşti - Defendant
Romanian State - through the Ministry of Public Finance - Defendant
National Agency for Mineral Resources - Defendant
Subject matter: By their summons, the claimants Vasile Maria-Ilaria and Dragu Georgeta requested to the court (we copy the petition for the summons) to:
A. In particular, order the defendant to pay an annual rent of EUR 496.64 for the protection area of the pipeline belonging to the defendant and which crosses the building privately owned by the undersigned, as of the date of registration of this summons;
B. In particular, order the defendant to pay a lump sum of EUR 508,080 in respect of the attribution of the use of the property according to its intended purpose, namely that the undersigned may not build buildings on the privately owned building;
C. In particular, order the defendant to pay legal interest on the annual rent provided for in point A, from the date of registration of the present summons;
D. In particular, order the defendant to pay legal interest for the lump sum compensation provided for in point B, from the date of registration of the present summons;
E. In the alternative, we request you to order the other two defendants to pay the amounts indicated in the preceding paragraphs. '
Conpet filed a counterclaim in this case, requesting the court:
1. To order the applicants Vasile Maria - Ilaria, Dragu Georgeta and Dragu Maria to allow CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the land owned by them, located in Focșani city, Vrancea County. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the crude oil transport pipeline Ø 20˝ Bărăganu - Borzești / Rafo Onești, for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and the execution of accidental and planned repair works. The exercise of the right of easement is to be carried out throughout the existence of the pipeline located on the claimants' land but not later than the date of termination of the oil concession agreement concluded by us, the undersigned CONPET S.A., with the Romanian State.
2. To establish the amount of the annual rent provided by law due by us, the undersigned CONPET SA, to the claimants Vasile Maria - Ilaria, Dragu Georgeta and Dragu Maria in exchange for exercising the right of legal easement, rent consisting in the equivalent value of the annual land use affected by the exercise of the legal easement.
Clarifications: By the Conclusion no. 71 / 09.03.2021 the competence to settle the case is declined in favor of the Second Civil Section of Administrative and Fiscal of the Vrancea Court. No appeal. Thus, the file no. 1657/91/2020* has been created.
Procedural status of the case: Merits
Deadline: 21.03.2023
9. File no. 220/262/2017 * - Moreni Courthouse
Parties: Conpet SA - defendant
Chivu Ion - claimant
Subject matter: Chivu Ion filed a request for a summons requesting the court to order:
- obliging Conpet SA to move the oil pipeline that crosses the land owned by him, with an area of 1,753 sq. m. located in the commune of Ocnița T14, P114;
- establishing the access location with the obligation of Conpet SA to pay an afferent annual rent both for the access road and for the pipeline that causes damage to the land;
- compensations for the land affected by the pipeline.
The claimant assessed his claims provisionally at the amount of RON 45,540 / year x 3 years (RON 136,620).
Conpet filed a counterclaim requesting the court to:
- Order the claimant CHIVU ION to completely dismantle the existing construction (concrete foundation) located on the crude oil pipeline Ø 6 5/8 ”Ochiuri - Moreni, which under-crosses the land owned by him, located in Ocnița, T 14, p114, cadastral no. 159 Land book no. 70441 Dâmbovița county. This construction was carried out without authorization, and Ocnița City Hall ordered the works to be stopped.
- To oblige the claimant to allow the company CONPET SA to exercise the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the land owned by the claimant CHIVU ION located in Ocnița commune, T 14, p114, cadastral no. 159 Land book no. 70441 Dâmbovița county. The exercise of the right of legal easement is to be carried out on a 2.4 meter wide corridor located along the crude oil transport pipeline Ǿ 6 5/8 ”Ochiuri - Moreni that under-crosses the claimant's land, in order to have permanent access to the pipeline in order to daily check the condition of the pipe and perform any repair works.
- To establish the amount of the annual rent provided by law due by us to the claimant in exchange for exercising the right of legal easement, starting with the date of finality of the decision by which the claimant is obliged to allow CONPET SA to exercise the right of legal easement.
Conpet filed a request to show the owner of the property right over the transport pipeline that under-crosses the land owned by the claimant Chivu, introducing the Romanian state in question through the Ministry of Finance and NAMR.
Conpet filed a request to increase the amount, requesting the court to oblige the claimants to demolish the constructions (concrete platforms) built in the protection and safety area of the pipeline.
Clarifications: By the sentence no. 1000/05.11.2019 the Moreni Courthouse partially admits the main request. It admits in part the counterclaim. The decision was appealed by Conpet SA and Chivu Ion.
By the Decision no. 223/02.06.2020, the Dâmbovița Court rejects the appeal filed by the Romanian State through the Ministry of Public Finance-General Regional Directorate of Public Finance Ploieşti against the Conclusion of 5.04.2019. It admits the appeals exercised against the civil sentence no. 1000/5.11.2019 pronounced by the Moreni Courthouse in the file no. 1220/262/2017. It annuls the sentence under appeal and remits the case for retrial to the first instance.
By the Decision 694 of 06.10.2022, the Moreni Courthouse admits the request in part. Chivu Florica – Daniela and Chivu Ion filed an appeal.
Procedural status of the case: Appeal
Deadline: 23.03.2023
10. File no. 32294/299/2020 - Bucharest District 1 Courthouse
Parties: Conpet SA - defendant - counterclaimant
Bob Mihăiță - claimant-defendant
NAMR - defendant
Subject matter: Bob Mihăiță files a summons requesting the court to order:
1. The obligation of Conpet SA and NAMR to move the crude oil pipeline crossing the land owned by the claimant located in Cernavoda, plot 1, plot A6 / 2, Constanța county;
2. The establishing the equivalent value of the lack of use, for a period of three years, prior to the formulation of the summons, amounting to RON 150,000;
3. In the alternative, the obligation of Conpet SA to pay an annual rent for the use of the land owned by the claimant, from the date of filing the summons, in the amount of EUR 5/sq. m./year for the area of 14,645 sq. m., land affected by the protection and safety area, during the existence of legal easement;
4. The payment of legal expenses.
By the request for clarification of the summons, the claimant stated the following:
„................................................. .................................................. ................................................
3. For the method of calculating the amount of RON 150,000, I indicated the value of a rent, estimated at RON 4,166 /month, for a period of three years prior to the formulation of the summons, which the defendants in the present case should pay as compensation for the damage suffered as a result of the impossibility of capitalizing the land crossed by their pipelines
4. We request, in the alternative, that the defendant SC Conpet SA be obliged to pay an annual rent for the use of the land personally owned by the undersigned, from the date of filing the summons, during the existence of the legal easement, until the lifting of the pipelines on the land of the undersigned.
5. The value of the 3rd head of the claim is RON 10,000, estimated value, following that, after performing the report of forensic technical expertise, the real estate assessment specialty, performed in question to stamp according to the value of the land related to the protection and safety area of the construction.
6. I request that the court oblige the defendant Conpet SA to pay all the compensations requested in the summons, and the defendant the National Agency for Mineral Resources to be obliged to move / decommission the oil pipelines on the land owned by the undersigned.
.................................................. .................................................. ............................................... “
Conpet filed a counterclaim seeking the following from the court:
1. To order the claimant to allow CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the land owned by the claimant Bob Mihăiță located in Cernavoda, plot 1, plot A6 / 2, Constanța County. The exercise of the right of legal easement is to be carried out on a 2.4 meter wide corridor located along each of the main crude oil transport pipelines that under-cross the claimant's land, respectively the F1 main crude oil transport pipeline Ø 14¾ ", F2 main crude oil transport pipeline Ø 20 ", and Pipeline 28 Constanța - Bărăganu of crude oil transport Ø 28", for the purpose of permanent access to pipelines for daily verification of the condition of pipelines and execution of possible repair works. The exercise of the right of legal easement is to be carried out throughout the existence of the pipelines located on the land of the claimant, but no later than the date of termination of the oil concession agreement concluded by us, the undersigned Conpet SA, with the Romanian State;
2. To establish the amount of the annual rent provided by law due by us, the undersigned, to the claimant in exchange for exercising the right of legal easement.
Clarifications: By the Conclusion of 06.08.2021, the Bucharest District 1 Courthouse rejects the exception of the belatedly of the request for impleader and of the request for showing the right holder, invoked by the National Agency for Mineral Resources, as unfounded. It rejects the exception of the lack of representative capacity of the National Agency for Mineral Resources, invoked ex officio, as unfounded. It rejects the request for an impleader from the Romanian State, through the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. It rejects the request to show the right holder of the Romanian State, through the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. The conclusion can be appealed with the merits.
In the case, it was ordered to carry out a forensic technical expertise in the field of topography with the following objectives: "1. Identification and highlighting on the land plan sketch of the oil transport pipelines that cross the land owned by the claimant;
2. Identification and highlighting on the plan sketch of the pipeline the routes located on the land owned by the claimant;
3. The highlighting on the plan sketch of the permanent access lanes of 2.4 meters wide located along the pipelines that undercut the claimant's land and the determination of the land surface corresponding to these lanes;
4. Identification of the fact, if the existing pipelines in the basement can be diverted from the land owned by the undersigned [claimant] to another available land".
Procedural status of the case: Merits
Deadline: 18.04.2023
11. File no. 3370/105/2022 - Prahova Court
Lambru Dragomir – defendant-respondent
Subject matter: obliging the defendant to pay the amount of RON 524,752.23 representing the counter value of the quantity of 5,989.72 meters of pipe missing in management and 15,532.00 meters of electric cables missing in management, amount to be updated with the inflation rate until the date of effective payment .With legal expenses.
Lambru Dragomir filed a counterclaim asking the court to oblige the company Conpet SA to compensate the minuses found by the court in my management from the Inotești Warehouse until the competition of the pluses from the same management found following the annual inventory of material stocks for the year 2013.
Clarifications: Clarifications: At the deadline of 08.12.2022, the Prahova Court split the counterclaim filed by Lambru Dragomir and the file no. 5132/105/2022 was created.
By the Decision no. 2566/15.12.2022 The Prahova Court admits the exception of ineligibility invoked by the defendant, by response. It rejects the action having as its subject matter a tort liability action, filed by the claimant SC CONPET SA against the defendant LAMBRU DRAGOMIR, as inadmissible. With the right of appeal within 30 days of communication.
Procedural status of the case: Merits - File no. 3370/105/2022, Merits - file no. 5132/105/2022.
Deadline: 24.05.2023 - File no. 5132/105/2022
HEAD OF LEGAL DEPARTMENT
Legal Adviser Cornel BĂNICĂ
"I certify the truthfulness and accuracy of the information"
HEAD OF LITIGATION OFFICE
Legal Adviser Valentin MARCU
Legal Adviser. Irinel GEANTĂ
Legal Adviser Ana PÎRVU
Legal Adviser Octavian TACHE
Legal Adviser Cătălina DĂU
Legal Adviser Bogdan Olteanu
