07 May 2012 10:37 [Source: ICIS news]
BUCHAREST (ICIS)--Romanian chemical producer Oltchim reported a net loss of New Lei 82.8m ($24.6m, €18.8m) for the first quarter of 2012, compared with a net loss of New Lei 2.64m in the same period last year, as sales tumbled 45%, the company said on Monday.
Oltchim attributed its poor earnings to operating at lower capacity and to the depreciation of the local currency. Furthermore, the group's financial report shows higher feedstock costs and an increase in Oltchim’s short-term debt.
The company’s turnover during the period decreased by 45% year on year to New Lei 254.4m.
Oltchim has been producing at reduced capacity for the past eight 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. Last month, four companies submitted non-binding offers for the state’s controlling stake, and the privatisation process is expected to be complete by October.
Based at Ramnicu Valcea, central-southern ?xml:namespace>
($1 = New Lei 3.36, €1 = New Lei 4.40)
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