Azomures posts half-year profit of 50bn lei

Fertiliser manufacturer Azomures closed the first half of this year with 50.5bn lei profit, less than half the figure registered over the same period of last year.

This negative evolution was triggered by a fall in operational returns and by a boom in expenses on interests for the credits contracted by the company, which went up by more than four times as compared to the first half of last year.

The company is specialised in manufacturing and selling fertilisers, melamine and photosensitive materials.

On the first six months of the year, Azomures’ turnover jumped to 1,318bn lei, from 851bn lei in the similar period of 1999, posting a 54% increase that exceeded the devaluation of the national currency over this period.

The fall in operational returns was generated by expenditures increasing at a more alert pace as compared to turnover.

Interests expenses rose from 16.7bn lei on the first six months of last year to 86bn lei on the first half of this year. This pushed financial expenses up to 105bn lei, three-fold the figure registered in the first six months of the previous year.

The company contracted 222bn lei worth short-term banking loans, while its debts to the state budget stand at 25bn lei.

The revenues derived from exports continue to hold an important weight in company’s sales. Thus, on the first half, Azomures exported products worth 560bn lei, standing for approximately 42% of company’s turnover.

Last year, Azomures posted net profit of 117bn lei, against turnover standing at 1,464bn lei. The company will not distribute dividends this year, as the net returns are to be earmarked for the reserve funds.

For this year, net profit was estimated at 158bn lei, while total revenues are expected to come to 2,127bn lei.

The main shareholders of Azomures are Transworld Fertilizers Holding Luxemburg, with a stake of 41.20%, State Ownership Fund (SOF) with 19.35% and Broadhurst Investments Ltd. with 12.71%.

The value of company’s net assets towards the end of the previous year stood at about 220bn lei.