Vegetable oil producer Argus Constanta, the number-two player on the market, has reported a slight decrease in its first-quarter business for 2005, with turnover down to 8.3 million euros (316 billion ROL) from 8.8 million euros (356 billion ROL) for the same period last year.
Net profits fell sharply to 23,000 euros (850 million ROL) from almost 700,000 euros (28 billion ROL) in the first quarter of 2004.
"The appreciation of the local currency triggered price hikes for sunflower seeds and a significant drop in exports, forcing several big exporters to turn to the domestic market. Hence, the fiercer competition, which caused oil prices to fall," said Vasile Leu, the general manager of Argus Constanta.
Last year the company''s turnover fell to 37.8 million euros (1,532 billion ROL) from close to 40 million euros (1,500 billion ROL) in 2003.
Gross profits last year remained at two million euros (85 billion ROL), a level similar to the previous year in euros, but higher in ROL.
Leu believes the company''s finances will improve in the second half of the year. "I don''t think things will change much in the second quarter, but in the second half of the year the market will stabilise.
"In the autumn of 2005, when we plan to buy raw materials, there will be no more price fluctuations as happened last year, which will push many players back to exports. This will be very good for market players."
stelian.negrea@zf.ro
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