Romportmet boasts the best margin on the BSE, 75%

Romportmet harbour operator, headquartered in Galati and controlled by Arcelor Mittal group, in the first six months of this year registered a gross profit margin worth 75 percent against its turnover – the highest level reached in recent years.
Over the past four years, the company has constantly derived gross margins higher than 50 percent, but this time profitability was boosted by an increased amount of traffic in Galati harbour.
The company’s gross income in the first half of this year climbed by 68 percent, to 24.5 million RON (7.4 million euros), while Romportmet’s turnover, during the same period, surged by 17 percent and reached a level of 32.3 million RON (9.7 million euros). Romportmet’s net income amounted to 20.6 million RON (6.24 million euros).
Profits were largely generated from operations, with the company posting an income worth 20.2 million RON (6.1 million euros) on this segment, 17 percent higher than the level reached during the same period last year.
Romportmet, which Mittal Steel acquired from Broadhurst investment fund in 2005, in a deal worth 37.8 million euros, has over the past year acted as a lender to other companies within the Mittal group due to its high level of liquidity. The company last year granted loans worth 32 million euros to Mittal Steel Iasi and Mittal Steel Hunedoara, and at the end of July granted a loan worth 36.5 million euros to Dutch company World Steel Data, which is yet another member of the Mittal group.
Romportmet manages the river harbour in Galati, with its main activity being the unloading of bulk ore, and was created to supply the Galati steel plant with raw material.
In recent years, the share of steel products in the total revenues has increased constantly and last year accounted for 24 percent of the company’s turnover, although bulk commodities still make up almost three quarters of the services provided by the company.
Romportmet is controlled by Mittal Steel Holdings, which owns more than 83 percent in it. Another important shareholder is Sidex Trading, which holds 11.5 percent.