Oltchim Expects Swing To RON2.1M Profit In ‘11

04.15.2011 By Andrei Circhelan

Romanian state-owned chemical company Oltchim Ramnicu-Valcea (OLT.RO) on Friday said it expects a switch to a profit of 2.1 million lei (EUR1=RON4.0966) this year, after four years of loss, based on increased output and higher sales.

Romanian state-owned chemical company Oltchim Ramnicu-Valcea (OLT.RO) on Friday said it expects a switch to a profit of 2.1 million lei (EUR1=RON4.0966) this year, after four years of loss, based on increased output and higher sales.

The company's budget for 2011 includes the petrochemistry assets bought last year from oil company OMV Petrom (SNP.RO). The petrochemistry segment is expected to increase production, compared to 2010, when Oltchim functioned at 35% of its capacity, the company said in a news release.

As such, the company expects sales to rise 71% on the year, to RON2.43 billion, from RON1.42 billion in 2010.

Oltchim plans to increase its exports by 73% this year, to EUR398 million, and increase investment by 74% on the year, to RON600 million.

The company is 54.79% owned by the state, while German PCC SE holds 12.15% and British Carlson Ventures International Ltd. Holds a 11.92% stake.

Oltchim shares rose 2.08% on the day Friday, to RON0.49.