ROL strength hurts Socep

Harbour operator Socep Constanta has posted 8.7bn ROL (0.22 million euro) losses for the fourth quarter of 2004 after reporting profits for the first nine months of the year. The harbour operator was hurt by the decline in exchange rates that ate into its revenues. “We actually are service exporters, and the recent strengthening of the ROL has affected our earnings,” said Petrica Valcu, Socep manager. He said that company revenues were down 26bn ROL (0.6 million euros) following the appreciation of the ROL. The company made unaudited net profits of 59.3bn ROL (1.5 million euros) last year, down 30% in euros from 2003 when it made 2.1 million euros. Last year was also the fourth consecutive year in which the company’s profits fell. However, Socep benefited from the increase in the volume of foreign trade last year causing an increase in traffic at Constanta Harbour. ZF