Romania's Oltchim 9-month net loss grows to New Lei 308.5m

30 October 2012 11:31  [Source: ICIS news]

BUCHAREST (ICIS)--Romanian petrochemical and plastics manufacturer Oltchim reported a net loss of Romania New Lei 308.5m ($87.4m, €67.8m) for the first nine months of 2012, compared with a net loss of New Lei 179.8m in the same period last year, the company said on Tuesday.

Oltchim did not make any comments regarding the results. The company’s turnover decreased by 45% year on year to New Lei 693.7m.

Last week, Oltchim restarted its 120,300 dry metric tonnes (dmt)/year liquid caustic soda unit following months of restricted production. The unit is the first one to be opened after the Romanian government earlier this month announced plans to begin negotiations with local banks to secure a loan of around €10m ($13m) to enable it to resume activity at majority state-owned Oltchim.

Production at Oltchim has been severely restricted for more than a year as a result of a lack of working capital to secure feedstock supplies.

Furthermore, the government will seek to privatise Oltchim via direct negotiation with a major investor, subject to approval from the International Monetary Fund (IMF) with which the country has a financial agreement. This would avoid the public auction route that recently failed.

The government cancelled the privatisation of Oltchim on 1 October, saying a Romanian investor had not provided documents to prove he had the money to buy the majority stake he had won.

Based at Ramnicu Valcea in southern Romania, Oltchim produces caustic soda, petrochemicals, agrochemicals, inorganic products and building materials, including insulating polyvinyl chloride (PVC) for panels, doors and window frames.

($1 = New Lei 3.53, €1 = New Lei 4.55, €1 = $0.78)

By: Marian Chiriac
+44 20 8652 3214

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