Romania Insider

Update: Oltchim's loss deepens to EUR 41.7 million

(Adds statement by minority shareholder PCC in last paragraphs)

State-owned chemical producer Oltchim Ramnicu Valcea saw its loss deepening in the first six months of this year - around EUR 41.7 million, which was 35 percent higher than the loss it posted the same period of last year.

The company's revenues amounted to around EUR 125 million, while its expenses, to EUR 148 million. The loss from exploitation was of EUR 25.3 million. The company's debt went up to exceed RON 2 billion (EUR 471 million).

Oltchim lost a total of EUR 49.5 million last year. The main shareholder in Oltchim is the Economy Ministry, with 54.79 percent of the shares. The other large shareholder in Oltchim is German chemical group PCC, which holds 12 percent in the company.

Update: Petro Carbo Chem (PCC) SE believes Oltchim Ramnicu Valcea needs to be restructured immediately to avoid the company's shutdown, which is a major risk considering the debt and the losses posted by the company. A management change should be included in the restructuring process.

PCC says the current management has been in place for 20 years while no restructuring has been made to the portfolio of products. The company reminds of the EUR 14 million fine for not complying with environmental regulations, which was due to management negligence, according to PCC.

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Romania Insider

Update: Oltchim's loss deepens to EUR 41.7 million

(Adds statement by minority shareholder PCC in last paragraphs)

State-owned chemical producer Oltchim Ramnicu Valcea saw its loss deepening in the first six months of this year - around EUR 41.7 million, which was 35 percent higher than the loss it posted the same period of last year.

The company's revenues amounted to around EUR 125 million, while its expenses, to EUR 148 million. The loss from exploitation was of EUR 25.3 million. The company's debt went up to exceed RON 2 billion (EUR 471 million).

Oltchim lost a total of EUR 49.5 million last year. The main shareholder in Oltchim is the Economy Ministry, with 54.79 percent of the shares. The other large shareholder in Oltchim is German chemical group PCC, which holds 12 percent in the company.

Update: Petro Carbo Chem (PCC) SE believes Oltchim Ramnicu Valcea needs to be restructured immediately to avoid the company's shutdown, which is a major risk considering the debt and the losses posted by the company. A management change should be included in the restructuring process.

PCC says the current management has been in place for 20 years while no restructuring has been made to the portfolio of products. The company reminds of the EUR 14 million fine for not complying with environmental regulations, which was due to management negligence, according to PCC.

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