Severnav in the red

The losses generated by the payments on interests and by the exchange rate gaps in the first nine months turned the core business-related profit of shipbuilder Severnav Drobeta-Turnu Severin into a 5bn ROL loss. The company in Q3 logged the same amount of core business-related profit as in the first half, 12bn ROL. Severnav’s nine-month turnover reached 162bn ROL ($4.8 million), 1.5 times lower than in the corresponding period of last year. The ships built by the shipyard are included in the turnover when they are actually delivered. Nine months through the year, Severnav had 548bn ROL in debts, 209bn ROL of which in form of down payments from clients. The yard, however, has recently delivered a 20 million-euro vessel. It is about a LPG and ethylene tanker commissioned by German company Hartman. The naval shipment and shipbuilding market is going through a time of recession. The Drobeta Turnu Severin yard experienced it early this year when foreign partners cancelled seven firm contracts for ships. Severnav shipyard is currently employing 2,300 people and has specialised in all-purpose maritime transport ships over the last few years, but also built natural gas tankers, all of which exported. ZF