Euro doubles shipyard profits

Orsova Shipyard posted net profit worth 98bn ROL ($3 million) last year, twice the previous year’s results in real terms (it netted 43bn ROL in 2001). Most of the shipyards in Romania are complaining about the depreciation of the dollar against the ROL, which has sunk profits, as the price of materials and labour has gone up, while the ship prices, calculated in the domestic currency have remained relatively constant. The European currency gained about 25% against the ROL last year, while the USD gained only 6%. The entire last year’s output of the yard is destined to the European markets, with delivery prices calculated in euros. The shipyard, as its general manager Constantin Badoiu says, has contracts to last the entire 2003, with European companies as clients, again. The company’s turnover progressed slower than the profits. Deliveries of ships totalled 487bn ROL ($14.8 million) last year, compared with 296bn ROL ($10.2 million) in 2001. ZF