An explanation for shipbuilders’ improved performance in 2010 is that in 2009 the companies posted significant financial losses as a result of the unfavorable foreign exchange rate trend. Several shipyards have foreign currency debts and their reassessment caused financial losses.
Most domestic shipyards improved their profitability in 2010 even though turnover slid for the first time since the onset of the crisis, as orders stop coming. Cumulated turnover generated by the same shipyards shrank by 8.5% last year, to EUR862 million.
The only shipyard that saw turnover rise was that of Korean-held Daewoo Mangalia Heavy Industries, which reached EUR402.6 million after a 32.9% increase. It thus came to account for almost 50% of the Romanian shipyard market. Daewoo cut their losses to one third, EUR33.3 million in 2010.
The other top companies saw their business shrink, with the steepest declines recorded by Santierul Naval Constanta, 81.4%, held by businessman Gheorghe Bosanceanu and Shipyard ATG Giurgiu, controlled by Teodor Apostol, whose sales plunged 40%. Still, the net profit of the former amounted to EUR1.7 million (up 2.8 times), while the latter’s stood at EUR0.5 million.
Both shipyards of Tulcea and Braila, part of the Korean STX Shipbuilding group returned to profit last year, with cumulated income of EUR25.3 million, after EUR12.1-million losses in 2009. The two shipbuilders reported significant profits although their turnover slid by 29% to EUR204.7 million.
Dutch-held Damen Galati also returned to profit last year, with an income EUR5.9 million, after EUR2.1 million losses a year before, although its turnover dropped by 19% to EUR84.3 million.
Other shipyards in the ranking include Severnav Drobeta Turnu-Severin, whose profit stood at EUR0.5 million, while turnover reached EUR39.3 million, down 15%, Santierul Naval Orsova, with EUR16.4 million turnover, down 31%, Rig Service, with EUR 2.3 million profit and 3% lower turnover at EUR15.8 million and Argos Constanta, with EUR13.4 million turnover (down 24%) and EUR0.1 million profit.
(English version by Catalina Apostoiu; Editing by Loredana Fratila-Cristescu)