RUMANIAN OIL INTERESTS

Evening Post, Volume CXXX, Issue 92, 15 October 1940, Page 12

RUMANIAN OIL INTERESTS

Developments in the Rumanian oil fields "strike another blow at the fortunes of the Shell group," states the "Economist," and very seriously affects the position of the Phoenix Oil Company. Astra Romana, a Shell subsidiary, has a capital of £2,500,000 and in normal times was responsible for rather more than 5 per cent, of the annual production of the whole group. The last year for which figures are available was 1938, when production was 1,514,872 metric tons, against 1,682,447 metric tons for 1937. Astra Romana then produced 22 per cent, of the total Rumanian crude oil output. In 1939 Astra Romana dividend was reduced from 10 per cent, to 6 per cent, following a drop in net earnings, contributed to by political, currency, and exploration difficulties. The Phoenix Company owned production and distributing plant in Rumania and distributing installations in Germany, Austria, Belgium, and Yugoslavia. The Rumanian property is the most important asset in the Phoenix group. The loss through the present situation will be greater for the Phoenix than for the Shell Company, as the latter's assets have a-world 1 wide distribution, but the future 6f Astra Romana in of material importance to the Shell Company, as indeed is the future of both companies to the British and Rumanian Governments.