“Even though the company had a gross profit of 1.53 million lei (around EUR0.37 million) in the first quarter, a forecast of sharp revenue drop in April and May needs measures to cut spending,” the company said in a memo sent to the Bucharest Stock Exchange.
The company aims to reduce expenditure on materials, energy, water supply, maintenance, without hindering operations. Staff reduction is the ultimate option in spending cuts.
The company expects a pretax profit of RON3.14 million this year, slightly below the RON3.6 million result reported in 2010. Sales are seen at RON132.99 million, compared to RON132.25 million last year.
The company is 59.62% owned by the Economy Ministry, while investment fund Fondul Proprietatea (FP.RO) holds a 10% stake.
Oil Terminal shares were last traded Wednesday, at RON0.2295, flat on the day. (EUR1=RON4.0744)