Romstrade construction company doubles profit despite crisis

Construction company Romstrade in Giurgiu, controlled by Nelu Iordache, posted a 133.9 million-RON (31.6 million-euro) net profit last year, double as much as in the previous year, although the constructions sector fell by 17% last year, thanks to several contracts won in 2008.

Romstrade's turnover rose in the context where Compania Nationala de Autostrazi si Drumuri Nationale (National Highways and National Roads Company - CNADNR) had a record budget over the last five years, investing almost 1.2 billion euros for the construction of motorways and the rehabilitation of national roads. Romstrade won contracts worth 600 million euros with the state between 2007 and 2009, either in partnership or directly, with the biggest one being for the rehabilitation of a 148-kilometre stretch of Transalpina road, a 385 million-euro contract. This rehabilitation in fact generated the biggest volume of works for the company, with Romstrade receiving a 140 million-euro loan from Swiss bank Credit Suisse for funding the works, with the amount being used up last year.

The Giurgiu-based company posted a 1.13 billion-RON (267.9 million-euro) turnover in 2009, up 14% on the previous year, making it the biggest construction company on the Romanian market.