SNLO and CNH are the main players on the local coal market. But their financial situations are not far from being classified as disastrous. Their major problem is the fact that they are working only for state companies or enterprises controlled by the local authorities, most of which, for various reasons, are not honoring their invoices, according to experts on the local market. Nearly 40 percent of Romania’s energy production is based on coal.
SNLO posted losses exceeding RON 31 million (€7.4 mln) in the first six months, while the company’s total debts amount to some RON 215 mln (€51.2 mln).
“Both SNLO and CNH were strongly affected in the first half of this year by the decline in coal orders. SNLO is generally a profitable company, but now it is in financial blockage,” Sorin Gaman, Deputy General Manager of the Ministry of Economy, responsible for mining, told Business Standard.
According to Gaman, CNH, the largest debtor to the state budget, is trying to erase its outstanding debts with the European Union’s approval. CNH’s problem is that, even though it benefits from subsidies, it cannot cover its production costs, sources close to the company said.
