Petrotub logs bigger losses

The financial situation of Petrotub Roman, a producer of cast iron and steel tubes, has significantly worsened in the first half of the year, at a time when the company’s privatisation seems to be coming to a close. In H1, 2003, Petrotub posted losses worth 190 billion ROL (5.8 million dollars), as compared with net profit of 233 billion ROL (7 million dollars) recorded in the corresponding period of last year. Petrotub has been facing difficulties since the second half of last year, when losses actually cancelled H1 profit and thus the company posted an entire-year net loss of 35.5 billion ROL (1.1 million dollars). The company’s turnover dropped 28% in nominal terms and, after the first six months, reached 1,595 billion ROL, down from the 2,213 billion ROL registered in the year-ago period. The company’s management grounds the sales slump on the lack of raw material, and on plunging demand on the domestic market. ZF