Socep profit drops by half, as anticipated

The Socep Constanta harbour operator registered net income worth 2.25 million RON (0.62 million euros) last year, more than 52% lower compared with 2004.

This happened following the growth seen by the domestic currency against the dollar, which pushed revenues lower, but was also related to a decline in traffic with regard to the export of goods.

However, Socep”s profit was close to the budgeted level of 2.3 million RON (0.63 million euros), after the company”s profit stood at just 1.19 million RON (0.33 million euros) in the first nine months. The company practically managed to double its profit in the fourth quarter, owing to the intensification of harbour activity and an increase in traffic, after lower activity in the first three quarters.

The company”s representatives did not comment on these figures.

Socep last year registered turnover worth 42 million RON (11.6 million euros), from 54.2 million RON (13.4 million euros) in 2004. The slump in turnover came amid the RON”s appreciation against the dollar, which reduced the company”s revenues, given that tariffs are levied in dollars. Turnover also went down because of the considerably lower harbour traffic, particularly in the first half of last year, when the volume of some categories of exported commodities shrank, with others even vanishing completely.

To counter the negative effects of these market trends, Socep initiated a restructuring and fund saving programme at the end of the first quarter last year, after finding itself in the red, which helped it pick up toward the end and approach the results anticipated in the budget.

As part of the restructuring programme, Socep last year laid off about 200 of the 900 employees it had at the end of 2004. This allowed the company to trim its personnel expenditure by about 8% in RON from the previous year.

Socep last year managed to renew its contract with Uzinele Sodice Govora and sodium product traffic also had a positive impact on the company”s results.

Socep specialises in working with general freight (laminates, light industry and food industry products) and wholesale freight (iron ore, fertilisers, grain).

The company does not have a majority stakeholder, being controlled by employees and managers. Its shareholding structure also comprises several investment funds, some of which belonging to the Capital group, such as Romanian Reconstruction or Tidal Wave, and the Trigon Teise Laine fund belonging to the Estonian Trigon Capital.

SIF Oltenia also owns around 7.5% in Socep.

Socep has regularly distributed dividends in recent years, but their value has followed a descending trend, like the profit levels themselves. andrei.chirileasa@zf.ro