Targoviste-based Otelinox company in the first half of the current year posted net profit worth 88.930 billion lei, almost five times higher than the net profit registered over the same period of last year. Thus, the company has already exceeded last year's profit, while its turnover has doubled.
"The spectacular increase in profit was not triggered by an activity boom, but was due to the Government's decision to lower profit tax on exports from 38% to 5%," Valentin Ionescu, operations manager with EuroInvest Vision, told Ziarul Financiar.
Almost 40% of Otelinox production is aimed at international markets. According to Valentin Ionescu, the measure the Government applied starting January 1 was extremely beneficent and boosted exports, increasing the profitability rate of several companies, including Oltchim and Alro, whose profits saw significant raises.
Otelinox shares are currently the object of a fierce fight between the main shareholder Samsung Deutschland, which holds 61.28% of stock, and Lindsell investment fund, which represents a minority shareholder, Broadhurst Investments. Samsung offered 34,500 lei per share, exceeding thus Lindsell's bid of 31,500 lei/share.
Otelinox shares are traded on the first tier of Bucharest Stock Exchange, and the latest trading price (August 7) amounted to 32,000 lei. During the period January-June, Otelinox posted total revenues of 369.987 billion lei, against total expenditures standing at 259.624 billion lei.
Company's turnover came at 349.144 billion lei, as compared to 158.690 billion lei. Over the period in question, company's commercial profitability (net profits against turnover) actually doubled, standing at 25.47% against 12.39% in the first half of 1999.
The stocks of the company dropped slightly, down to 54.529 billion lei on June 30 as compared to 63.875 billion lei at the beginning of the year. At the same time, its debts dropped from 73.520 billion lei to 42.222 billion lei.
Last year, Otelinox posted 66.927 billion lei net profit, against a turnover of 404.557 billion lei. Otelinox has a share capital of 152.506 billion lei, divided into 6.1 million shares with the face value of 25,000 lei.
Its main shareholders are the State Ownership Fund (SOF), which holds a 9.33% stake, investments funds Balkan Fund (with 5.09% of shares), Broadhurst Investments Ltd. (which holds 14.15% of stock) and Financial Investment Company Oltenia (with a 7.21% stake), the other shares belonging to small shareholders.
The company operates in the field of iron and steel smelting and is specialised in manufacturing and trading stainless iron plates and stripes.
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