Romania’s Orşova Shipyard signs new EUR 4 mln contract for river boat

The publicly-traded Romanian shipbuilder Orşova Shipyard, BVB ticker symbol SNO, announced last week the conclusion of a new contract worth EUR 4.05 million with the Rensen-Driessen Shipbuilding group from the Netherlands.

The agreement entails constructing and delivering a river vessel by March 31, 2025.

Among the terms and payment conditions is an "advance payment of the contract value, based on a bank guarantee letter for the refund of the advance, with the remaining amount to be paid after the vessel arrives at the delivery location,” according to Ziarul Financiar.

The shipyard company is currently valued at approximately RON 80 million (EUR 16 million). As a result, the recently signed agreement represents about a quarter of the company's capitalization, according to Bvb.ro data.

In Q1/2024, the company had a turnover of RON 18.5 million, down 23% compared to the same period last year, and a net profit of RON 666,757, compared to a loss of RON 558,204 in Q1/2023. Expenses decreased by 27.8% year-on-year to RON 17.8 million.

Company stock has grown in value by 28.7% in 2024 and 46.6% over the last 12 months. The company is equally owned – 47% each – by Longshield Investment Group (SIF4) and Sea Container Services Constanţa.

(Photo source: Bogdanel Vacarciuc | Dreamstime.com)