The acquisition was made by public auction, organized by the judicial liquidator SIERRA QUADRANT S.R.L in an insolvency / bankruptcy procedure.
The main feature of the Group’s interest in EUROPA 2 barges is that they are covered barges, which allows them to be used in the transport of any type of dry agricultural, mineral or chemical product.
“This flexibility in operation (which uncovered barges do not have, as they cannot be used for agricultural products and dry chemicals) allows optimizing the movement of convoys, with positive influences on the profitability of the TTS Group. In addition, due to their size (66 meters opening at the warehouse and 8.5-meter width), the EUROPA 2 barges allow the transport of oversized cargo, being at the same time among the most resistant, both in terms of structure and hull. The optimum load is 1,300 tons at a draft of 2.3 meters,” the report shows.
The acquisition of EUROPA 2 barges is part of the modernization process of the unpowered fleet, with NAVROM owning 201 covered barges following the acquisition. The floating dock will increase the number of non-propelled ships recertified in the Group’s shipyards. This will lead to a reduction in ship repair costs, both by reducing waiting times and by reducing third party costs, which currently have a significant share in the total cost of repairs.
“This investment will increase the operational efficiency of the fleet of non-propelled vessels, reflected in the consolidated operating results of the TTS Group,” according to TTS representatives.
TTS ended 2021 with total consolidated revenue of RON598 million, up 15% on the year, and a net profit of RON66 million, up 38% on the year.
TTS’ main shareholders are Alexandru Mircea Mihailescu, with a 25.26% ownership stake, NN Group (10.2%), Ion Stanciu (7.07%), Aegon Pensii (6.46%), Paval Holding (5.33%) and Utilico Emerging Markets (5%).
TTS shares have lost 17.04% since the beginning of 2022, amid deals worth RON32 million, as per stock market data.