Sharp decline in demand for gas and oil ducts

The makers of oil and gas ducts have logged 30%-60% lower revenues in the first few months of this year. Following completion of the $185 million project to increase the natural gas transit in 2002, the specialised market is now barely scraping by. Petroconst Constanta, one of the operators specialised in building oil and natural gas ducts posted 157bn ROL (4.3 million euro) turnover for the first five months, nearly half (in ROL) of the level recorded in the same time last year, which reached 300bn ROL (10.2 million euros). The full-year forecasts do not look too good, either, as the turnover estimated for 2003 is 400bn ROL, instead of the 1,000bn ROL in 2002, which accounts for a 60% decline in nominal terms. The company has already laid off people, so that it is now employing only 600 instead of the previous 1,000, due to the sharp decline in orders from its main business partners: SNP Petrom, Distrigaz Sud or Transgaz Medias. ZF