Romania’s Oltchim reports net loss of €62m in 2011

15 February 2012 15:08  [Source: ICIS news]

BUCHAREST (ICIS)--Oltchim made a net loss of Romania New Lei 270m ($81m, €62m) in its 2011 financial year, despite higher sales, as it faced an increase in feedstock costs and short-term debt, the Romanian chemical producer said on Wednesday.

Its 2011 net loss was worse than the previous year’s loss of New Lei 223m.

However, Oltchim’s turnover rose by 16.7% last year, reaching New Lei 1.53bn, up from New Lei 1.31bn in 2010.

The company did not comment on the results, but the official financial report shows higher feedstock costs and an increase in Oltchim’s short-term debt.

Oltchim has been producing at reduced capacity for the past six months, and a shortage of working capital and lack of raw materials forced it to temporarily suspend all polyvinyl chloride (PVC) production in October.

The company is in the process of being privatised, with the government aiming to dispose of its 54.79% stake. An invitation for bids in the sell-off should be issued in the coming months.

Based at Ramnicu Valcea, central-southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating PVC for panels, doors and window frames.

($1 = New Lei 3.32, €1 = New Lei 4.35)

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By: Marian Chiriac
+44 20 8652 3214

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