Upetrom 1 Mai, a local company producing equipment for extracting hydrocarbons, has entered insolvency after seven years of consecutive losses, reports local Economica.net.

The company filed for insolvency at the beginning of August, and the court approved its request on August 11. It has appointed PricewaterhouseCoopers Business Recovery Services IPUR as the producer’s judicial administrator.

Upetrom is owned by local investor Gabriel Comanescu, one of the most active Romanian investors in the oil sector. Comanescu owns Grup Servicii Petroliere (GSP), a company that specializes in offshore drilling. The investor has earned several contracts abroad. GSP has branches in Rotterdam, Singapore, Dubai, Moscow, Mexico, Tunisia, Istanbul or Milan.

Upetrom recorded a turnover of EUR 6.5 million last year, but saw losses of about EUR 4.3 million. It reported losses in the last seven years, and its debts amounted to RON 240 million (EUR 52.3 million) at the end of 2016.

Comanescu bought the oil equipment factory 1 Mai Ploiesti in 2001, which was later renamed Upetrom.

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