Atlas Gip attributes Q1 drop in profit to exploitation expenditures

Atlas Gip turnover decreased in Q1 by 10.7 percent, to RON 2.19 mln (€6 mln), while total income amounted to RON 22.94 mln (€6.3 mln), 7.67 percent lower year-on-year.

Expenditures rose 16 percent, to RON 19.5 mln (€5.3 mln), due to higher exploitation costs, up to RON 19.2 mln (€5.2 mln).

The company is forecasting a 25 percent increase in turnover in 2008. According to company officials, half of the turnover in 2007 came from a contract with Petrom, and 25 percent from contracts with Romgaz, the second-largest local gas producer. Atlas Gip will invest €60 mln in equipment in the next four years.

On the Romanian market, Atlas Gip has partnerships with US companies Weatherford, Baker Hughes, Geodynamics and Halliburton. The company is controlled by businessman Ovidiu Tender, who owns 70 percent of the capital. Another important shareholder is financial investment company SIF Muntenia, with 14.5 percent. Atlas Gip has a capital of RON 2.1 mln (€570,000), divided into 850,000 shares.