Petromservice, the biggest supplier of equipment and services for the oil and gas industry, posted net income worth 111.7million RON (31 million euros, calculated against the average NBR exchange rate) at the end of last year, according to data presented in the Official Gazette.
Compared to 2004, the profit is almost double in euros.
The company''s representatives could not be contacted for comment on these figures by the time of going to press.
The company''s turnover got close to 300 million euros (over 1.08bn RON), 10% higher in euros in comparison with 2004.
Most of the net income (29.3 million euros) logged by the company will be earmarked for investment financing, while the remainder will be disbursed in the form of dividends to the firm''s shareholders (0.8 million euros) and to refill the legal reserve (0.8 million euros).
To the same end of financing investments, the board of directors was authorised to initiate specific procedures to contract a loan worth 100 million euros, according to with Official Gazette data.
A large part of Petromservice shares (49.3%) are held by a Cypriot offshore, Elbahold Limited, 25% are owned by Petrom''s Employee Association (PAS) led by the leader of Petrom trade unions Liviu Luca, and the remaining 25.7% of the total amount of shares belong to a number of 8,577 individuals.
Petromservice has recently announced it planned to double its turnover over the next 3 to 5 years.
At present, 80-85% of Petromservice''s revenues are generated by contracts with Petrom, the biggest Romanian company, controlled by Austria''s OMV oil group.
Petrom has recently extended the service contract sealed with Petromservice over a seven-year period, with the minimum value of the contract standing at 1 billion euros. At the same time, Petrom will assume all severance payments in case of a reduction in personnel.
Last year the company cut down on its 19,143 employees personnel by 25%, a decision that was prompted by the "lower volume of services delivered to Petrom," say Petromservice officials.
The company was created in February 2002 through the spinning off of the former Petroserv oil services unit of Petrom, becoming an entirely private company. Petromservice has made massive investments in other sectors, as well over recent years, in particular the media. roxana.petrescu@zf.ro
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