"Several high tonnage ships will be completed by the end on the year. Two have already been finalized, and one will be delivered to the buyer in the coming days," said Radu Rusen, General Manager of Constanta Shipyard, the large tonnage construction and repair company. Revenue from repair activities will complete the financial results, he added. An analysis made by the company's management indicates that results forecast for this year are the highest reported since 1990. As of the 2002 privatization, Constanta Shipyard registered only losses, except in 2004 when it reported a small profit.
According to Rusen, three construction projects contracted in 2003 and delivered last year were at the root of the 2006 negative balance. A rise in sheet iron and equipment prices, the EUR/USD parity, and the strengthening of the RON against the USD, determined a decreased profitability of the afore-mentioned projects.
The total income of Constanta Shipyard amounted to €117 million (RON 413.2 million), while turnover was some €107 million (RON 376.5 million) with approximately 94.8 percent of its business coming from exports. The company expects to increase its income by 19 percent by year's end. Its orders portfolio includes 18 oil/chemical tankers worth a total of $700 million, covering the shipyard's production capacity until 2010. Beneficiaries are ship owners from Cyprus, Germany, Malta and Italy.
