April 26 (SeeNews) - Bulgaria's Odessos Shiprepair Yard [BUL:ODES] said on Tuesday that its net profit fell to 1.99 million levs ($1.1 million/1 million euro) in the first quarter of 2021 from 2.5 million levs in the same period of 2021, as the war in Ukraine compounded the pandemic fallout in terms of costs of materials.
The result came on the back of a decline in revenue to 11.6 million levs in the review period against 15.4 million levs in the first three months of last year, Odessos Shiprepair Yard said in an interim financial statement.
The Varna-based company managed to trim its January-March expenses on raw materials and energy by over a quarter year on year to 9.6 million levs despite spending about 1 million levs more on materials compared to the like period in 2021.
Odessos Shiprepair Yard did not exclude the risk of fuel and raw materials shortages over the coming months, as a consequence of the ongoing war in Ukraine. Sanctions against Russia could bear down on maritime traffic in the Black sea, reducing the need for ship repairs. However, Odessos Shiprepair Yard does not anticipate a significant impact on revenue from such potential developments.
The military conflict, coupled with effects from the pandemic, led to a 22.33% annual decline in revenue from ship repairs to 10.8 million levs in the first quarter of 2022. Altogether, 12 ships were repaired in the review period, down from 13 in first three months of 2021.
The company expects the conflict to be short-lived, with the business remaining stable and potentially improve its financial results in the short term, although no long-term forecast can be ventured given the unpredictability of the duration and geographical spread of the conflict.
Shares in Odessos Shiprepair Yard, which has a market capitalisation of some 59.3 million levs, last traded flat at 101 levs on the Bulgarian Stock Exchange.
(1 euro = 1.95583 levs)