Astra Romana Refinery at the end of last year posted 2.3 million RON (0.64 million euro) net profit, after having made losses of 2 million RON (0.65 million euros) in 2004.
The refinery made profit after selling an Asirom stake, a company controlled by businessman Ioan Nicolae, as the crude processing plant has not been operational since the autumn of 2004.
The turnover the company posted fell from 245.8 million RON (60.6 million euros) in 2004 to 15.4 million RON (4.27 million euros) at the end of last year.
"The profit made last year was not derived from production but only from the sale of the stake in Asirom," Corneliu Tanase, general manager of the company and chairman of its board of directors stated.
Astra Romana''s board of directors at the end of last year decided to sell over 60 million of the 113.4 million shares held in Asigurarea Romaneasca - Asirom. The transaction, conducted through financial investment company SWISS Capital, was done at an average 0.5 RON/share price. Therefore as a result of this transaction, Astra Romana gained approximately 30m RON (8.3m euros), enough to cover its long-outstanding debts and end the year with a profit. Subsequently, Astra now has only 8.34% in Asirom, compared with 17.8% prior to the transaction.
The company officials estimate a 7.6 million RON (2.1 million euro) loss in 2006. "It is exactly the same loss we would have posted in 2005 were it not for the sale of the stake," Tanase explained. "These are the necessary costs to maintain only some parts working of the refinery that is now still not operational," Astra Romana official concluded. The shareholders of the refinery decided in October 2004 to halt production, preserve the company and engage in economic and financial restructuring, depending on the trend of the crude oil and of the petroleum products market.
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