Oil Terminal Cuts Working Hours To Slash Costs

05.02.2011 By Andrei Circhelan

Romanian cargo handler Oil Terminal Constanta (OIL.RO) Monday said it will cut working hours to four days per week, implicitly reducing pay, to meet the estimated costs for the first half of this year.

"Even though the company had a gross profit of 1.53 million lei (around EUR0.37 million) in the first quarter, a forecast of sharp revenue drop in April and May needs measures to cut spending," the company said in a memo sent to the Bucharest Stock Exchange.

The company aims to reduce expenditure on materials, energy, water supply, maintenance, without hindering operations. Staff reduction is the ultimate option in spending cuts.

The company expects a pretax profit of RON3.14 million this year, slightly below the RON3.6 million result reported in 2010.

The company is 59.62% owned by the Economy Ministry, while investment fund Fondul Proprietatea (FP.RO) holds a 10% stake.

Oil Terminal shares were last traded Wednesday, at RON0.2295, flat on the day. (EUR1=RON4.0744)