Romanian state-owned chemical producer Oltchim's preliminary financial results for 2012 show that losses doubled and sales halved last year. The insolvent chemical producer, which went through a failed privatization attempt last year, saw losses increase to around EUR 90.5 million in 2012. Meanwhile, sales dropped to under EUR 171 million last year, according to preliminary results made public yesterday (March 20 ).

Production stopped at the factory last year for extended periods of time, which was reflected in the operating losses – some EUR 62 million, or three times bigger than in 2011. Wage costs in 2012 rose by 4 percent to just under EUR 35 million, with results in-line with International Financial Reporting Standards.

By December 31, 2012, Oltchim's total debt had reached over EUR 620 million.

Earlier this week, a new general manager was named at Oltchim. Mihail Talpasanu took over from the former manager Mihai Balan, whose mandate ended on March 15.

The Romanian Government approved Oltchim’s insolvency on January 23, with a consortium of Rominsolv SPRL and BDO Business Restructuring RPRL as judiciary administrator. This came soon after the state failed to privatize Oltchim in a first privatization stage, which was won by media mogul Dan Diaconescu, who then failed to pay the pledged amount.

The state announced it was seeking European Commission (EC) approval to grant the factory state aid. The government is requesting approval for some EUR 45 million in state aid for Oltchim in the much delayed and still ongoing privatization process of the state owned facility.

editor@romania-insider.com

photo source: sxc.hu