CET Govora, the largest electricity producer in Valcea County, recorded a cumulative operating profit of RON 9 million in September, October and November, after losses of RON 335 million reported at the time of entry into insolvency four months ago due to renegotiation or contracts’ denunciation, judicial administrator Euro Insol announced on Monday.
“On May 9, 2016, the Valcea Court opened the insolvency proceedings for CET Govora due to the depreciation of financial indicators: losses of RON 335 million, debts of RON 438 million, negative own capitals of RON 96 million, liquidities in bank of only RON 170,000, considering that only monthly salary fund exceeded RON 10 million,” Euro Insol pointed out.
Thus, the Romanian power plant recorded a profit of RON 2 million in September, RON 3.4 million in October and RON 3.6 million in November.
According to the judicial administrator, the company entered the profit after taking measures such as termination and renegotiation of more than 100 contracts, especially in terms of higher prices on energy utilities provided to Oltchim and Ciech Soda Romania (former Uzinele Sodice Govora).
The power plant in Ramnicu Valcea also recorded cost reductions of more than RON 13 million renegotiating the purchase price on materials, equipment, supplies, services, and a cutting by RON 12 million of fund salaries, after laying off 282 employees.
At the same time, the liquidities in bank accounts increased from RON 170,000 on May 9 to RON 43 million at November 30, 2016.