Orşova Naval Shipyard - profit of 3.4 million lei last year, compared to a loss in 2022

The Orşova Naval Shipyard (SNO) reported a preliminary net profit of 3.4 million lei for last year, compared to a loss of 4.2 million lei in 2022, given the increase in turnover by 72.3%, up to 99.5 million lei, according to the report published yesterday by the company on the website of the Bucharest Stock Exchange (BVB).

In the first nine months of 2023, the producer of river ships had reported a net profit of almost four million lei, which means that in the fourth quarter Orşova Naval Shipyard had a negative result. According to the company, the results achieved until September are mainly due to the 2023 production schedule. Only in the third quarter, at the company's headquarters, five vessels, namely two stainless steel tanks of 86 meters in length, had been completed and delivered to external customers. two 110-meter-long tanks and a 110-meter-long container ship (compared to three ships that were completed and delivered in the same period of 2022).

Last December, the company concluded a euro2.61 million contract for the construction and delivery of a river vessel to Gebr de Jonge Shipbuilding Services in the Netherlands.

On December 31, 2023, the operating expenses of Orşova Naval Shipyard were 96.3 million lei, 52.5% more than in 2022. Inventory expenses amounted to 43.3 million lei, with 94.3 % higher than those of the previous year, while employee benefits expenses were 30.4 million lei, up 25.2%. Under these conditions, the company reported an operating result of almost 3.6 million lei, compared to a loss of 4.8 million lei in 2022, to which was added a gain from financial activities of 0.32 million lei.

Sea Container Services and SIF Muntenia (SIF4) are currently running a public offer through which they aim to buy about one million SNO shares, equivalent to 8.8% of the river ship manufacturer. The characteristics of the market operation have already been changed twice, once by increasing the purchase price of the shares from 5.1 lei to 7 lei and extending the offer period until February 21, which was later extended until February 28.

Until yesterday at 1:00 p.m., about 0.3 million shares had been sold in the offer, equivalent to 31% of all the securities concerned, according to the data we collected from the platform of a brokerage company.

At the end of November last year, Sea Container Services and SIF Muntenia notified the market that, following the conclusion of a cooperation agreement until the end of April this year, together they own 91.2% of Orşova Naval Shipyard, Sea Container Services having almost 50% of the company and the SIF 41.2%.

If, as a result of the offer, the SIF and Sea Container Services manage to exceed the 95% holding threshold in the Orşova Naval Shipyard, they will be able to start the process of delisting the company.

The stock market valuation of the producer of river ships from Orşova is approaching 80 million lei.