Navol steers clear of bankruptcy

The striking off and rescheduling of its debt by the State, new contracts worth 39 million euros and funding for new projects have prompted the shareholders of the Oltenita Shipyard (Navol) to drop receivership plans, previously caused by the company’s default. Navol has recently signed a 33 million-euro contract with a German firm for building five cargo ships from scratch. The shipyard was also due to sign a contract with a Dutch company for building four ship hulls, worth 6 million euros, yesterday. These contracts will not influence this year’s results, though, as the first such contract is expected to be completed at the end of 2006, while the second should be done some time next year. However, the contracts will make a difference in the 2005 results, with Navol estimating it will end the year with 1.35 million-euro profit against a 21 million-euro turnover. Navol expects 1.11 million-euro losses this year, while sales stood at over 6.2 million euros. ZF