Romanian Chimcomplex’s shares drop by 6.8% after announcing “austerity plan”

The shares of Romania’s largest chemical group, Chimcomplex (BVB: CRC), dropped by 6.8% on April 11 after the company announced a plan to address challenging market conditions, including no dividend disbursement this year but also a severe cut in the compensation package for the top management.

The plan aims at cost reductions and accelerated investments, seeking to ensure stability and sustainability in the face of present and future difficulties.

“This is a response to the unfavorable and unpredictable developments in the business environment generated by military conflicts and multiple crises globally, culminating in the difficulty of contracting essential raw materials for Chimcomplex, as well as the high prices for natural gas, electricity, propylene, and economic forecasts indicating the continuation of the negative trend in the upcoming period,” the company’s statement reads.

The cost reduction program for 2024, following the results of 2023, starts with the allowances of the members of the Board of Directors and those of the directors without affecting the rights of the employees.

At the same time, GreenComplex will accelerate production activities in the field of green chemistry and chemical recycling while Chimcomplex launches a feasibility study for Romania's first bio-chemistry plant, with production activities in Iași and research in Bucharest and Buzău.

(Photo source: the company)