Bulgarian ship-repair yard Odessos reports a 20% slump in first-quarter net profit

SOFIA (Bulgaria), April 26 (SeeNews) – Bulgaria’s Odessos Ship Repair Yard [BUL:ODES] said on Tuesday that its net profit for the first quarter of 2021 fell to 1.99 million leva ($1.1 million) from 2.5 million leva in the same period of 2021 as the war in Ukraine threw up Pandemic consequences in terms of cost exacerbated materials.

The result was due to a drop in revenue to 11.6 million leva in the period from 15.4 million leva in the first three months of last year, Odessos Shiprepair Yard said in an interim report.

The Varna-based company managed to cut its spending on raw materials and energy by over a quarter year-on-year to 9.6 million leva in January-March, although compared to the same period in 2021 it spent about 1 million leva more for spent materials.

Odesso Shiprepair Yard did not rule out the risk of fuel and raw material shortages in the coming months as a result of the ongoing war in Ukraine. Sanctions against Russia could disrupt Black Sea shipping and reduce the need for ship repairs. However, Odesso’s Shiprepair Yard does not expect any significant revenue impact from such potential developments.

The military conflict coupled with the impact of the pandemic led to a 22.33% annual drop in ship repair revenues to 10.8 million leva in the first quarter of 2022. A total of 12 ships were repaired during the period, up from 13 in the first three months of 2021.

The Company anticipates that the conflict will be short-lived, business stable and potentially improving its financial results in the short term, although given the unpredictability of the duration and geographic scope of the conflict, no long-term forecast can be provided.

Shares in Odessos Shiprepair Yard, which has a market capitalization of around 59.3 million leva, were last traded unchanged at 101 leva on the Bulgarian Stock Exchange.

(1 euro = 1.95583 levs)

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