Romania's Oltchim halves annual net loss to €64m as costs fall

17 February 2014 12:59  [Source: ICIS news]

LONDON (ICIS)--Crisis-stricken Romanian chemical producer Oltchim approximately halved its net loss to Romania New Lei (New Lei) 285.1m ($87.2m, €63.5m) in 2013 from New Lei 569.4m in 2012 due to a significant decrease in financial expenses, the company said on Monday.

Oltchim added that annual revenues sank to New Lei 498.0m from New Lei 760.6m year on year.

Oltchim was entered into insolvency proceedings and placed under the management of an administrator in January last year by its majority owner, the economy ministry, after an attempt at selling the indebted firm collapsed.

The 2013 operating loss stood at New Lei 276.8m compared to New Lei 334.7m in 2012.

Sources at the company say production stood at around 20% last year, with the company continuing to suffer a lack of working capital and feedstock.

The workforce was also cut to 2,744 from 3,317 in 2013.

Oltchim is currently subject to a renewed privatisation process in which investors are to bid for a debt-stripped version of the company named Oltchim II.

On 13 February, the economy ministry said that consortia from China, Romania and Hungary had expressed an interest in bidding for Oltchim II.

Talks were also under way with Azerbaijan's State Oil Company of Azerbaijan Republic (SOCAR) and two Turkish companies to establish whether they would bid, it added.

($1 = €0.73, €1 = New Lei 4.49, $1 = New Lei 3.27)


By: Will Conroy
+44 20 8652 3214



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