Hidroconstructia targets €225 mln in turnover

“A business involving over 9,000 employees working on projects around the country must be managed with care, so increases are not so spectacular. It is important to complete the contracts to which you commit. Our target is to maintain €200 million in turnover in the coming years,” according to a statement for Business Standard by Romeo Bogdanovici, Manager of Hidroconstructia.

Preliminary information indicates that the company’s turnover dropped 7.8 percent last year, to €218.5 mln, mainly due to insufficient financing to sustain ongoing contracts. The company’s net profit dropped 13.8 percent year-on-year, to €15 million.

According to Bogdanovici, the participation in major infrastructure projects presents certain risks for companies with insufficient financing in terms of respecting the work schedule. He said that Hidroconstructia is presently working on many projects, and intends to conclude other contracts in 2008, and any deficit that could determine the blockage of contracts due to financial or logistical insufficiencies could become very risky.

Hidroconstructia borrowed €60 million from a bank consortium led by BRD in December to finance and guarantee projects in the coming years.

The company plans to invest €23 mln this year in technical equipment, land acquisition, and construction.

Hidroconstructia’s main projects in 2007 were the rehabilitation and expansion of drinkable water and sewerage networks, flood protection work, and waste management projects.

Hidroconstructia specializes in the construction of dams and hydroelectric plants, and hydrotechnical work. The company has 6,800 shareholders, 9,500 employees, and share capital worth €38.69 million.