Severnav''s profit comes from reassessment of contracts

Severnav shipyard in Drobeta-Turnu Severin stepped into the black in the first quarter of this year, though not due to the increase in its turnover, but to the reassessment of contracts underway. The shipyard posted a turnover worth 1.4 million RON (0.4 million euros) in the first three months, almost ten times less than in the same period of last year, according to the data that the company released on the RASDAQ market. The operating revenues increased 2.5 times to 42.6 million RON (12 million euros). The difference between total operating revenues and the turnover was due mainly to the registration in the accounting books of the increase in the prices of raw materials and of the tariffs for utilities, which will generate higher revenues at the time delivery, according to contracts closed by Severnav. As a matter of fact, this was the actual reason why the company went into the black, according to the general manager of the shipyard, Stelian Stancioiu, quoted by Mediafax. ZF