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BUCHAREST (Romania), May 11 (SeeNews) - Romanian chemical company Oltchim [BSE:OLT] said on Friday that it booked a net profit of 46.3 million lei ($12 million/ 10 million euro) in the first quarter of 2018, a six-fold increase year-on-year.
The results recorded by Oltchim in the first quarter further confirm the company's progress and the successful implementation of the measures to streamline the business set out in its reorganisation plan approved by the creditors, the company said in a statement.
Following the announcement of the financial results in the first quarter of 2018, Oltchim's shares rose 7.36% to 0.1970 lei as at 1202 CET on the Bucharest Stock Exchange.
Oltchim's turnover grew 34% on the year during the January-March period, to 297 million lei due to an increase in the volume of finished goods sold, mainly oxo-alcohols. Also, there was an increase in liquid and solid caustic soda prices determined by the decrease in the European production following the shutdown of the plants operating with mercury technology.
The good results were also due to efficiency-boosting measures at the company, following which the total expenses only increased by 11%, whereas the total income increased by 30%, Oltchim said.
Oltchim, which has been in insolvency since 2013, is the only producer of liquid caustic soda in Central Europe and the only producer of chlorine and polyether polyols in Romania.
In October, Oltchim said it would sell six bundles of assets worth 590.6 million lei to Romanian chemicals producer Chimcomplex Borzesti [BSE:CHOB] and to Romanian PVC profiles and accessories distributor Dynamic Selling Group. Oltchim expects to finalize the asset sale in the first half of 2018.
Oltchim is currently controlled by the Romanian state through the economy ministry which owns a 54.8% stake. Germany's PCC SE owns 32.3%, while the balance is held by smaller shareholders.
(1 euro=4.6348 lei)