Severnav boosts capital to fill orders

On July 29, Severnav’s management will propose that its shareholders approve increasing the company’s capital by 3.5 million euros. According to chief executive Stelian Stancioiu, this is due to the large number of orders and the long production cycle, necessitating greater liquidity. At present, the share capital of the Turnu-Severin-based shipbuilder stands at 69.7bn ROL. 70% is controlled by the State Assets Resolution Authority (AVAS), with the rest held by various shareholders, either individuals or companies. “We want to fund production by means of a capital inflow from shareholders, as the interest charged by banks on loans and the foreign currency exchange rate trends are hitting our net profit level. In other words, our positive operating result is being reduced by the financial losses,” Stancioiu said. He added that Severnav had orders worth 45 million euros, which would keep the company busy until the end of 2006. ZF