Argus Constanta enjoys higher profits despite lower turnover

Argus Constanta, the second largest player on the Romanian edible oil market, reported a 61.7% euro increase in net profits in the first nine months of this year, up to nearly 1.4 million euros from the 0.86 million euros seen for the same period last year.

However, this clear rise in profits was not reflected in company turnover, which, in comparison with the same period last year, dropped by 6.63% from 28.86 million euros to almost 27 million euros this year.

Investments in the company’s own storage capacity (some 60% of the storage space used is owned by the company), high yields from the refinery and a raising of capacity to 240 tonnes of refined oil per day were the main reasons for the increased profits, explained general manager Vasile Leu. “In the future, in 8-10 months we will raise capacity in line with bottling levels in order get the maximum value out of the increased refining capacity. We have also been working on reducing storage costs,” said Leu.

Besides raising the refinery’s capacity, Argus has also invested in a biochemical cleaning station in order to meet the standards imposed by the EU in this field. Results are still lower than two years ago. In 2002 Argus had its best year, seeing profits in excess of 5 million euros, double the previous year’s figures.

In recent years, company profits have oscillated strongly as a result of changing sunflower purchase prices. dan.zavoianu@zf.ro