Holland's Petroplus closes power unit, loses Eur1.8-mil

Petroplus has decided to close Petroplus Power for a loss of Eur1.8-mil, the Dutch oil and energy group said Wednesday. Reviewing its results for 2000, Petroplus said conditions in the Dutch power market for a new entrant like itself had been rougher than expected.
"In view of the difficult circumstances in which Petroplus has to operate in the partly liberalized energy market, Petroplus saw no future for the activities of Petroplus Power," said the group. The loss will be consolidated into its 2000 annual accounts. The group should absorb the loss with relatively little pain; thanks to better conditions in the midstream oil market its earnings before interest and taxes soared to Eur67.5-mil for 2000, up from Eur26.8-mil in 1999.