Oltchim to increase share capital by 20 billion lei

Oltchim shareholders on August 11 are to approve the company’s share capital increase by almost 20 billion lei as the Court of Accounts has verified a previous reassessment of the company’s patrimony.

Following the share capital increase, shareholders might get one free share for 16 shares owned before the date of the above-mentioned general assembly of shareholders.

At present, Oltchim has a share capital worth 322.09 billion lei, divided into shares with a face value standing at 1,000 lei per share. The company’s shareholding structure includes the State Ownership Fund, which owns almost 53 percent of the shares, SIF (Financial Investment Company) Oltenia, with 6.61 percent of the shares and Broadhurst Investments Ltd., holding 7.46 percent of the share capital.

Oltchim shareholders will also approve the financial results of the first quarter of the year and the cession of the 2,464-share stake belonging to Oltchim Petzetakis, for a minimum price amounting to 2.69 million dollars.

Oltchim shares benchmark price has taken an ascending trend since the beginning of last month and it was basically supported by a credit programmme decided by the General Assembly of Shareholders (AGA), which is worth 215 million dollars and is guaranteed by the Government. Oltchim shares last month registered a 100 percent increase from 304 lei per share up to a high of 670 lei for one share.

After the first three months of the year, Oltchim posted net profit standing at 53.5 billion lei, against turnover amounting to 1,025 billion lei. However, these results have been affected by financial expenditures amounting to 138 billion lei, of which exchange rate differences, most of them generated by foreign currency credits, amounted to 79 billion lei at the end of the first quarter.

Last year, the company registered net profit worth 6.6 billion lei, against turnover amounting to 3,130 billion lei. The dividends fund was established at 2.2 billion lei. For the current year, Oltchim expects turnover to increase by 29 percent, up to 4,060 billion lei. At the same time, the company wants to increase net profit 25.5 times, up to 169.6 billion lei.

The company’s object of activity is designing, producing and selling various chemical products, but it also provides services and technical assistance.

Oltchim shares are currently traded on the Bucharest Stock Market (BVB). The last price of Monday’s trading session was 550 lei for one share, 3.85 percent higher than the price level of the previous session.