Petromservice's profit plummets

Petromservice, the biggest domestic supplier of equipment and services for the petroleum and gas industry, is expecting a 5 million-euro profit this year, as compared with almost one million euros last year, a dramatic decline against the 31 million-euro (111.7 million-RON) net income seen in 2005. “The main reasons for the profit reduction in 2006 against 2005 were the costs generated by the restructuring process,” said Petromservice representatives. Restructuring took place due to an obligation from the extension of the contract with Petrom (to which Petromservice provides services). At the beginning of 2006, Petrom extended the services provision contract closed with Petromservice over a seven-year period, with the minimum value of the contract standing at 1 billion euros. Petromservice saw a 0.8 million-euro (2.9 million-RON) net profit last year, almost 40 times less than the profit registered in 2005.