The Mechel Targoviste steel plant estimates its gross profit will double this year, up to RON 56.68 million (€15.7 mln), amid an 18 percent increase in income, according to the income and spending budget approved on Friday by the company’s shareholders. Last year, the company’s gross profit amounted to €7.2 mln.
Shareholders also decided last year’s profit will be allocated to cover losses in previous years and to establish legal reserves.

According to the budget approved on Friday, the company’s income will amount to €273.1 mln, while spending will increase 15 percent, up to €257.3 mln.

Mechel Targoviste’s share capital is worth €47.6 mln. Its main shareholder is Mechel International Holdings AG, part of Russian Mechel steel giant, with an 86.6 percent stake. Financial Investment Company (SIF) Oltenia has a further 8.92 percent of the shares.

The company is listed on the Bucharest Stock Exchange (BVB), with market capitalization worth €108.6 mln. (NewsIn)