Rompetrol Petrochemicals company, operating in the domain of petrochemistry, has budgeted net income worth 1.1 million euros for this year, whereas last year the unit registered losses of around 4 million euros, according to the company's representatives.
In the first half, the company generated income standing at 673,490 euros amid turnover worth 55.8 million euros, up 29% against the similar period of last year.
"The profit was derived as the polypropylene installation operated continuously, while last year operations were halted for more than a month for inspection and maintenance," say the representatives of Rompetrol Petrochemicals.
"The positive trend in the first half is due to the rising polypropylene production capacities, as well as to the sustained trading activities and to the higher prices for petrochemicals," they say.
This year, the company plans to reach turnover worth 138 million euros, 30% higher than in 2005.
Rompetrol Petrochemicals representatives expect the pace to be unchanged in the second half.
"Turnover growth in the second half is related to the resumed operations of the low-density polypropylene installation," say Rompetrol Petrochemicals representatives.
The company also plans to open other installations.
"In a way, Petrochemicals is going the same way Rompetrol has been going since 2001 until now. The resumed operations of these installations will add 300 million dollars (some 236 million euros) to the group's turnover every year," they add.
Rompetrol Petrochemicals is the only producer of polypropylene in Romania, holding a market share of 60.71%, according to the data provided by the National Statistics Institute for the first half of the year. Polypropylene is also the company's export product.
"At present, we export polypropylene, but the priority of Rompetrol Petrochemicals is to strengthen its position on the domestic market," specify the company's representatives. In the first six months of this year, exports weighed 43% in total turnover, with Turkey, Italy, Ukraine, Bulgaria, Austria and Northern Africa as the main export destinations.
At the same time, Rompetrol's petrochemicals unit reached a share of 6.61% on the PET segment. PET products are witnessing one of the fastest growth rates on the market, with experts expecting the growth to be steady over the following years. Rompetrol Petrochemicals will take advantage of this trend, investing approximately 80 million euros in a PET plant by late 2007.
At the same time, the company this spring sealed a 14-year delivery contract with the US Dow Chemicals giant. The contract will be the basis of the company's development plan, with the company targeting 1 billion dollar (around 835 million euro) turnover by 2010.
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