Oltchim cuts losses by 34 percent in Q1

Oltchim Ramnicu Valcea cut back its losses by 34 percent to RON 56.216 million after the first quarter of 2014. The chemical planet registered losses of RON 86 million last year in the same period, according to the quarterly report sent to the Bucharest Stock Exchange

Oltchim reduced its losses by eliminating expenses and laying off 913 employees in June 2013. On the other hand, the report mentions that Q1 2014 financial results were hit hard by international changes in pricing policies for caustic soda.

“This price evolution, given the average quantity of caustic soda produced by Oltchim in the first quarter of 2014, bears a negative influence over our income and a general loss of EUR 850.000 per month”, according to the document.

After the first three months of 2014, the company registered total revenue of RON 138 million and total expenses of RON 194 million, with a turnover of RON 136 million, up from RON 80 million last year.

The 65 percent turnover increase compared to Q1 2013 was determined by the level of use for production capacities, from 11.17 percent to 23.6 percent.

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Oltchim sold products worth RON 128 million, up from RON 73.9 million last year.