Oil Terminal sees profits double from 40% higher turnover

Oil Terminal Constanta, Romania”s largest maritime harbour operator, expects its turnover for 2005 to rise to 140 million RON (39 million euros), some 40% up on last year and on estimates made earlier this year.

The company also expects its net income to exceed 10 million RON (2,8 million euros), double the value in 2004.

“Given the results we have posted so far, we have reason to forecast financial figures above the values announced at the beginning of this year. The growth comes primarily from the shorter operation times and more fluid activities, which have enabled us to use available capacities to the full. As a result, in the first seven months of the year, we generated income of 12 million RON (about 3.3 million euros),” said Mihai Lupu, chairman of the management board and the general manager of Oil Terminal Constanta.

At the beginning of this year, Oil Terminal had forecast sales of 110 million RON (30.5 million euros) amid a net income of 3.45 million RON (almost one million euros).

“The originally expected traffic was exceeded each month. In September, for instance, the traffic in oil products through Oil Terminal amounted to 1.6 million tonnes, from an expected level of 920,000 tonnes. This was a record high in the company”s history,” explained Lupu. “However, the volume of freight going through Oil Terminal will decrease somewhat over the following months, and this month we expect traffic to be lower since most refineries perform maintenance work during this period.”

The harbour operator”s most important customer is still the Petromidia refinery, which accounts for 25% of total traffic. The company”s other important customers include Petrom, LukOil and Rafo.

By the end of the year, Oil Terminal also plans to invest more than 10 million RON (2.8 million euros). “The investment we will make over the following months will go on the environment only. We plan to replace all obsolete and out-of-order pipes,” Lupu said.

Oil Terminal plans to raise the security of its installation exploitation activity by gradually bringing to the surface its network of buried pipes, as well as by replacing old oil pumps with new ones.

The main shareholder in Oil Terminal is the Economy and Trade Ministry, which holds more than 69.6% in the company. The remaining shares are owned by minority shareholders, each with stakes of less than 5%. The company is listed on the second tier of the Bucharest Stock Exchange.