Oltchim improves financial and economic results in 2014

Oltchim anticipates a significant improvement in its financial evolution corresponding to 2014, the second year of insolvency, when the preliminary results indicate a turnover 25 percent higher year-on-year, increasing exports and an improved EBITDA, according to a press release of the state-owned company.

As per the financial results anticipated for 2014, the chemical enterprise's turnover rose from 112,7 million euro in 2013 to 141.2 million euro, while the exports which accounted for about 70 percent of revenues grew by 44 percent to 100 million euro. Also, the preliminary EBITDA, the best in the last three years, albeit still a negative value, improved by 36.8 million euro (from -46.2 million euro to almost -9.4 million euro).

“Oltchim's operations have recorded positive results, positive values of monthly EBITDA since October 2014. These positive results were registered mainly due to the combined efforts of the current leadership team and employees, translated into regained confidence of foreign clients as the company was able to deliver the high-quality products without interruptions, and also in reduced quantity as a result of lower oil prices”, states the mentioned release.

The instability of the oil market affects the company's operations generating a lack of predictability with respect to the price of finished products and the customers go for short-term contracts, minimum quantities, waiting for the price to stabilize.

Oltchim is expected to enter into reorganization in view of the privatization process which has failed up to this point, the company being still unattractive to investors, in spite of a better financial evolution during the insolvency period.

After completing the table of receivables on January 7, the plan will be presented within the coming 30 days, while its approval is expected in the first half of March 2015.