Profit of 0.7 million lei for Orşova Naval Shipyard

The Orşova Naval Shipyard (SNO) achieved, in the first three months of the year, a turnover of 18.5 million lei, 23% below that of the first quarter of 2023, but a net profit of 0.67 million lei , compared to a loss of 0.56 million lei, between January and March of last year, according to the river ship manufacturer's report published yesterday on the website of the Bucharest Stock Exchange (BVB).

According to the company, the decrease in revenues was mainly caused by this year's production schedule, which foresees the construction and delivery of one river vessel in the first quarter, compared to two vessels in the first three months of 2023. In fact, the Orşova Naval Shipyard completed two vessels between January and March 2024, but according to the contractual clauses, for the second vessel, revenue recognition in the company's financial statements was made in April, so it is not caught in the reporting period, as it appears from documents published by the issuer.

The decrease in revenues also led to a reduction in the company's operating expenses, which amounted to 17.86 million lei in the first three months of this year, 27.8% lower than those in the January-March period of last year. The most visible reduction in expenses was on inventories, which dropped from 10.9 million lei in the first three months of last year to 5.7 million lei in the first three months of 2024.

Under these conditions, the company reported, for the January-March period, an operating profit of 0.88 million lei, compared to a loss of 0.54 million lei in the same period last year. In February, Sea Container Services and SIF Muntenia (SIF4) carried out a takeover offer, as a result of which they reached a concerted ownership of 94.1% of the river ship manufacturer, below the 95% threshold that would have allowed them the delisting of the Orşova Shipyard. The two entities had entered into a cooperation agreement until the end of April this year, so they were eligible to launch the offer, presumably with the aim of delisting the company.

The stock market valuation of the producer of river ships from Orşova amounts to approximately 70 million lei.