The increase is due to the company winning a number of infrastructure contracts, as well as improved collections from the contracting authorities. Romstrade’s receivables are “within reasonable limits,” according to Gheorghe Racaru, the group’s strategy and development manager.
Romstrade is interested in more road construction contracts this year, including parts of the Transylvania Highway, Racaru said.
One of the most important contracts awarded to Romstrade last year is for the construction of the first section and connecting road of the Nadlac-Arad highway segment, in partnership with Monteadriano Engenharia e Construcao-Donep Construct, for EUR115.8 million.
Romstrade, in partnership with Primacons, will upgrade roads in counties Prahova, Giurgiu and Ilfov for 781.4 million lei (EUR180 million), and in counties Arad and Bihor for RON527.2 million, VAT not included.
The company has also bid on projects outside Romania and is currently awaiting the results of an auction in Iraq, but is not looking for any other foreign destinations, instead relying on local projects, said Racaru. “There is so much to do in Romania that every [group] company will be busy for the next 25-30 years.”
Rising oil prices are among construction companies’ biggest problems at the moment; Racaru said that the costs of some sections go up by as much as 12-15%.
The group intends to build a private airport at Adunatii Copaceni, Giurgiu through a EUR200 million investment, and will soon select a financial consultant and project designer. Construction may start as early as this summer and the airport could be opened in 2014.
Low cost airline Blue Air is, along with Romstrade, the most important business in the group controlled by Nelu Iordache. According to Racaru, the group’s total turnover was close to EUR500 million in 2011, from EUR400 million in 2010. (EUR1=RON4.3535)