January 14 (SeeNews) - Romanian cargo handling company Oil Terminal [BSE:OIL] said on Monday that its revenue will shrink this year due to a change in the terms of certification of traders of oil products imposed by the country's fiscal administration agency ANAF.
Part of Oil Terminal’ customers will be unable to fulfil the new technical terms of re-certification imposed by ANAF, the company said in a filing to the Bucharest Stock Exchange, BVB, on Friday evening.
Therefore, the economic operators' trade certificates, including the certificates of those loading energy products in tanker trucks under contracts with Oil Terminal, cease to be valid after January 31. As a result, after February 1 the activity of gas oil loading in tanker trucks in Oil Terminal will be substantially reduced, leading to a drop of 3 – 4% of revenues in the company’ turnover, the company said.
Oil Terminal also said it has initiated the necessary steps to obtain authorization for the use of global guarantee and is waiting for the customs authorities to inform it about the value that needs to be guaranteed.
In the first nine months of 2018, Oil Terminal's turnover fell 14% to 103 million lei ($25 million/ 22 million euro), while its profit plummeted to 2.2 million lei from 12 million lei a year earlier.
In 2017, Oil Terminal posted a net profit of 8.5 million lei, a third of the profit recorded in the prior year, on a 158 million lei turnover.
In January 2018, Oil Terminal signed a deal estimated at 24 million lei with local diesel fuel distributor Oscar Downstream for services to be provided by the terminal in 2018. Under the contract, Oil Terminal will handle the discharging of fuel from maritime vessels into shoretanks, its storage, conditioning with biodiesel and loading.
Oil Terminal, based in the Black Sea port city of Constanta, in southeastern Romania, is specialised in trading in oil, liquid petroleum products and petrochemicals and other products and raw materials for import, export and transit.
Oil Terminal's shares traded 6.93% lower at 0.1370 lei at 0957 CET on Monday on the BVB.
(1 euro = 4.6782 Romanian lei)