Orsova shipyard wants triple profits

Orsova shipyard, specialised in building and doing repair works for river ships, budgeted a net profit of 4.2 million RON (1.23 million euros) for this year, an over three-fold increase against the net profit seen in 2005. The turnover estimated by the company for this year stands at some 79 million RON (23.2 million euros) against sales worth 65.5 million RON (18 million euros) in 2005. When drawing up the spending and revenue budget, the company used an average exchange rate of 3.4 RON/EUR. “We estimate a growth in turnover and profit, given the export contracts, which are worth more than those closed last year. When drawing up the budget, we used an average rate of 3.4 RON/euro, so, theoretically speaking, if the rate is maintained at its current level or if the euro strengthens, this could have a positive effect on our results,” Gheorghe Caraiman, financial manager of the company, told ZIARUL FINANCIAR. Company officials also estimate there will be a drop in costs of raw materials, which will also reflect in the profit growth. ZF