According to the financial statements published by the Ministry of Finance, the companies which have as main field of activity “Road transport of goods” generated during 2015 a total turnover of RON 34,28 billion, up by 13 percent compared to the previous year, according to recent Coface study.
A major part of the advance of revenues is generated by the companies already existing on the market. Thus, in this context, 38 percent of the companies which activate in this sector reported decreasing revenues during 2015.
The Coface study included 31,363 transport companies that submitted financial statements in 2015.
“The investments for revamping represent 39 percent of the total assets, significantly over their wear and tear dynamics for the fourth consecutive year, the impact being slightly visible in the light of a sensitive increase of the consolidated profitability. The companies in the analyzed sector have maintained the high level of the supplier credit, their average payment duration being of 112 days while the receivables are collected at 88 days”, the study reveals.
Approximately 24 percent of the companies which submitted the returns for 2015 did not actually carry out any activity.
More than half of the active companies register a turnover smaller than EUR 100,000/year (2015), but the value share in the total turnover of this segment is of only 6 percent. 1,249 companies in this sector registered an annual turnover more than EUR 1 million during 2015. This segment of companies represents only 4 percent of the total companies, but it generates approximately 64 percent of the revenues registered at the level of the entire sector.
“The transport sector reconsiders what Coface has repeatedly highlighted: a relatively good development, which is not enough to significantly improve the structure of companies and ensure their sustainability. We see perpetuated imbalances through the use of short-term re-sources for investment and asset acquisitions, which make these companies subject to shocks in liquidity provision”, Eugen Anicescu, Country Manager, Coface Romania, mentioned.
41 percent of the companies which activate in this sector have reported a deterioration of the net result during 2015 compared to the previous year, approximately 12 percent of them going from profit to loss. The method of financing these investments made by the local companies is not sustainable. The share of debts on short term in the total capitals borrowed was maintained at more than 65 percent.
“The year 2015 brought for the local sector of goods transport an improvement of the payment deadlines to the suppliers and a decrease of the money conversion cycle, a fact which reveals a discipline of the companies and an improvement of the balance sheet indicators. Despite this fact, the average payment duration of suppliers’ remains slower by 16 days than the duration of the operational cycle,” Alexandru Fotia, Economic Analyst, Coface Romania, stated.
The infrastructure has not seen any improvement from 2013 to 2015. The length of the public roads in 2013 – 2015 remained almost the same (84,709 km – 2013, 85,184 km – 2014, 85,920 km – 2015), the deviation 2015/2014 being of 0.86 percent whereas the GDP growth in the same period was above the potential level.
“The infrastructure in our country characterized by insufficient investments and the poor state of roads continues to make the carriers’ activity even more difficult instead of contributing to its development. Regarding the risk, only 2 out of 10 companies analyzed by Coface during 2016 (sample representativeness 64 percent) are classified in a reduced risk of becoming insolvent”, Nicoleta Maruntelu, Economic Analyst, Coface Romania, explained.
The length of highways in Romania (747 km) represents below 1 percent of the total kilometers of road in 2015.