UPDATE: Romanian Post goes back on growth, axes EUR 441mln expenses

The Romanian Post announced it went back on growth, having posted in August a profit of approximately RON 600,000 (nearly EUR 138,000), and the upward trend is expected to continue.

 The positive results are a result of the implementation of efficiency and cost optimization measures, according to the press release.   

 The company axed expenses of EUR 441 million by cancelling unprofitable contracts and the reorganization of its units.

 Thus, at the beginning of this month, the Romanian Post had a number of 5,856 units.

 The state is preparing to attract an investor into the shareholding structure of the Romanian Post. The investor would take over a stake of at most 34 percent of the national company’s shares, according to Mediafax newswire.

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 The investor would also have the right to propose a team that should be in charge with the Romanian Post management over at least 10 years.

 The Romanian Post is currently controlled by the Ministry of Communications, that owns 75 percent of the shares and Fondul Proprietatea, with 25 percent of the shares.

 Following the capital injection, the state would still remain major shareholder but would have 51 percent of the shares.

 At the same time, Fondul Proprietatea could reduce its stake in Posta Romana at 15 percent if it does not take part in the capital injection.

 The Romanian Post had losses of EUR 29 million last year.

 The Romanian Post has a network of approximately 7,100 units in Romania. The budget of the institution estimates revenues of nearly EUR 350 million (RON 1.51 billion), and a net profit of approximately EUR 541,000 (RON 2.34 million).

 Otilia Haraga