Albania: Oil refinery ARMO for sale for 20MEUR

8. March 2016. / SEE Energy News

One of the two refineries of the former giant of market fuel in Albania was declared the sale by auction by EPSA auction company with starting price of 2.8 billion (20 million euros), while other creditors are in line to waiting to collect their dues.

EPSA company executive in media published a notice of real estate auction and technological lines of refinery ARMO Company, a company that has ceased since last year after the huge accumulated losses. The trigger for the auction was the unpaid loan taken from Raffeisen bank.

According to the announcement published in the newspaper Panorama, the auction was expected to take place on February 19 and the initial selling price is 2.8 billion. The list of 26 assets includes land and buildings in the village and Undergrowth Fier in Fier and technological lines owned by the company ARMO. All items put up for sale belong Fier Refinery, one of two refineries owned ARMO.

Destruction of former oil giant

ARMO is the former state-owned company that was established in 1999 after the government at the time decided the division of the oil industry that the country had inherited three companies, drilling, production and refining / distribution, with the intention to privatize this sector piecemeal. ARMO refinery had originally three, it Ballsh, Fier and Cerriku. In 2008, the Albanian government after the company issued sales took that refinery closed Cërrikut effectively leaving the Ballsh refinery and Fier. Businessman Rezart Taci resulted as winner of the tender on behalf of an international consortium.

In the balance of 2007, it resulted that the company had 15 billion assets, of which 3.3 billion were debts and the rest, capital of the properties. The company had 14.3 billion of revenue in 2007 and reportedly controlled about 20 percent of Albanian oil market.

85 percent of the shares acquired by a consortium controlled by Rezart Taci, paid 128 million euros for the company.

The economic situation of ARMO deteriorated rapidly over private management. In the balance of 2013, the Company recorded accumulated losses of 39 billion. The company, which has already changed the owner, had registered a net loss of 12 billion to 24 billion in 2012 and the other in 2013.

Balance 2014 is not published in the National Registration Center, but the extract of company documents listed several dozens of requests to block sales of shares of the company by different entities seeking unpaid debts of ARMO, transmits Serbia-energy.eu

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