Bucharest-Listed Companies Doubled Profits In First Quarter

05.18.2011 ZF English

The aggregated turnover of the 120 biggest listed companies that have so far published their financial results for the first quarter went up 26% compared to the same period a year ago, to 19.8 billion lei (EUR4.77 billion). Their cumulated profits doubled during this period, to RON2 billion (nearly EUR500 million).

One of the factors that contributed to the profit increases was the strengthening of the Romanian leu, which brought significant gains to companies with long-term foreign currency-denominated debts as the loan value was revised at a lower exchange rate. Rompetrol Rafinare (RRC.RO), Transelectrica (TEL.RO) and TMK Artrom Slatina (ART.RO) are just a few of the companies that posted big profits from financial operations.

Analysts say the revival seen in the first quarter confirms the economic recovery trend.

"The rebound experienced in the first quarter is not just a flash in the pan. The results announced by listed companies in the first quarter were partially influenced by the strengthening of the Romanian currency against the euro, but I noted companies reporting excellent results, with both profit and turnover increases," said Mihai Caruntu, head of BCR's capital market research department. (EUR1=RON4.1184)