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Conpet boasts 35% profit surge

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10.11.2006, 19:23 11

The state-owned crude oil transporter, Conpet Ploiesti, reported nine-month net profit worth 6.97m euros (24.6m RON), up 35.6% against the corresponding period of last year, shows a quarterly report on the stock exchange.
Company turnover amounted to 61.2 million euros (216.6 million RON) over the first nine months, rising by 10.6% against the same period in 2005.
The surge in profit has been mainly caused by a jump in growth of the company's operating revenues, which have exceeded operating expenses.
Revenues derived from pipeline transportation rose by 8.7% in euros, but the growth was offset a 4.1% increase in costs from the corresponding period of last year.
Profit posted by Conpet Ploiesti over the first three quarters tripled against figures projected for the entire year, which initially estimated net profit to stand at 2.06 million euros (7.2 million RON) in 2006.
Over 1.94 million euros (6.78 million RON) of the reported profit will be used to cover losses incurred over recent years, while the remaining sum will be used for legal reserves, according to the Revenue and Expense Budget, approved by the company's shareholders.
Financial indicators have dropped since midyear, when the company witnessed over a 2.2-fold rise in profit and a 12.7% growth in turnover.
Other companies in the field also posted a significant upturn in profit and turnover over the first half of the year.
The national grid company, Transelectrica, increased its profit by 34.2%, amid an 88% increase in operating revenues over the same period.
Later this month Conpet management intends to implement a new organisational structure tailored to the company's current level of development, as well as to the company's long-term objectives. The decision was made after the company's Board of Directors replaced the deputy general manager as well as the technical and commercial managers this August, to improve the company's commercial activities.