Strong ROL hits Orsova Shipyard

Santierul Naval Orsova (Orsova Shipyard) concluded the first three months of this year with losses of 0.5 million euros (18.7bn ROL), against profits of 0.2 million euros (8.4bn ROL) in the same period last year. As with other shipyards, the poorer than expected results were caused by the strong ROL, the increase in the sheet metal prices and the very cold weather seen at the beginning of the year, which affected shipbuilding operations. The shipyard posted a 2.53 million euro (94bn ROL) turnover for the first quarter, 28% down on 2004, although productivity rose by 8.5%. As the main factor behind the company”s falling profits was the increase in sheet metal prices, Orsova Shipyard purchased the entire amount of sheet metal it requires for 2005 at a fixed price that was better than the market price at the end of last year and the beginning of this year. Nonetheless, the price of sheet metal used for building ships was approximately 58% higher than planned for when shipbuilding contracts were first signed. ZF