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Back Home Home Oil and Gas Refining and Marketing Oltchim claims that it sees the light at the end of the tunnel: it submits the improved preliminary results for 2013

Oltchim claims that it sees the light at the end of the tunnel: it submits the improved preliminary results for 2013

Oltchim preliminary results  2013

Oltchim SA, a company currently undergoing insolvency proceedings, reported an improvement of the economic-financial indicators for 2013, compared to 2012.

Thus, according to the preliminary financial report submitted to investors, Oltchim decreased its total loss for 2013 by 286.6 million lei, decreased its operating loss by 57.9 million lei and improved its operating profit by 46.4 million lei, compared to 2012.

In 2013, Oltchim registered a net loss of 285 million lei, which is half the net loss registered in 2012, of approximately 570 million lei. The company’s total liabilities increased from 3.451 billion lei to 3.652 billion lei, of which only 271 million lei are current liabilities.
A turnover of 112.7 million Euros

The turnover registered by Oltchim in 2013 was 112.7 million Euros, of which 69.4 million Euros, respectively 62% of the turnover, represents the value of intra-community exports and deliveries. The value of intra-community imports and acquisitions reported by Oltchim in 2013 was 10.5 million Euros, which led to a positive external balance of 58.9 million Euros. 64% of exports are directed towards the EU, 6% are directed towards the rest of Europe, and 14% are directed towards the Middle East.

According to the document submitted by Oltchim, “the results registered by the company starting with February 2013 confirm the fact that it has managed to increase the degree of production capacity usage and, implicitly, to increase the turnover. The increase in production was reflected in the increase of the turnover from 5.4 million Euros in February 2013, to 12.1 million Euros in November 2013, respectively a 2.25 increase".

Operating costs reduced by 3.44 million Euros

OLTCHIM claims that it has substantially reduced its monthly operating losses during 2013, by 3.44 million Euros; thus, in February 2013, the EBITDA registered by the company was of -4.1 million Euros, and in November 2013, it was only -0.66 million Euros.

“This result was achieved through a much better use of financial resources, by eliminating all expenses which were not closely related to the production activity (the third party expenses and the service agreements were reduced to a minimum, all the consultancy contracts were cancelled), and by reducing personnel by laying off an important part of the personnel who works on the petrochemistry-monomer-pvc production lines, where the restart is presently uncertain, due to a lack of raw materials”, is stated in the quoted document.

The lay offs have increased the personnel expenses

Oltchim’s average number of employees in 2013 was 2,744 people, 550 employees less than the number registered in 2013, of 3,317 employees. Starting with June 14th, 2013, 909 employees were laid off, and at the end of 2013, Oltchim had 2,317 employees, 1,000 employees less than in 2012.

Despite all this, the salary expenses were increased from 154 million lei in 2012 to 196 million lei in 2013, but only following the compensatory salaries given to the laid off personnel (38 million lei) and the taxation expenses for the laid off personnel (20 million lei).

Unaudited preliminary results

The results submitted by Oltchim are preliminary and unaudited, and the company has announced that 2013 financial statements of Oltchim, a company undergoing insolvency proceedings, will not be audited by Deloitte Audit SRL, who had been granted in April 2013 the audit contract for 2012, but by PFK FINCONTA SRL.

The decision belongs to the Consortium of Judicial Administrators and to the Special Administrator, the expiry of the old audit services contract for the company’s financial statements on 31.12.2012.

Oltchim susține că vede luminița de la capătul tunelului: prezintă rezultate preliminare îmbunătățite pe 2013


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