21 March 2013 12:23 [Source: ICIS news]
BUCHAREST (ICIS)--Petrochemical and plastics manufacturer Oltchim made a net loss of Romania New Lei (New Lei) 403.3m (€91.2m, $117.9m) in its 2012 financial year, compared with a net loss of New Lei 198.3m in 2011, the company said on Thursday.
Furthermore, Oltchim’s turnover more than halved, reaching New Lei 760m, down from New Lei 1.53bn in 2011.
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’s units in Ramnicu Valcea, southern Romania, are operating at around 10% capacity, and production at its site has been severely restricted for more than a year as a result of a lack of working capital to secure feedstock supplies.
The Romanian government decided on 23 January to begin insolvency procedures in a move intended to pave the way for the company’s future privatisation, as a result of the group’s current economic problems.
The Romanian state holds a 54.8% stake in Oltchim, with Germany-based chemical producer PCC holding 18.3% and Cyprus-based Nachbar Services holding 14.3%. Smaller shareholders hold the balance.
(€1 = New Lei 4.42, $1 = New Lei 3.42)
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