Orsova Shipyard halved its profitability

River vessel manufacturer Orsova Shipyard reported a net profit of 2.5 million lei in the first half of this year, down 52% compared to the first half of last year, as operating income depreciated by 12.4%, to 48.2 million lei, according to the issuer's report published yesterday on the Bucharest Stock Exchange (BVB) website.

"In this semester, two ships were completed and delivered to intra-community partners, namely a 135-meter tanker and a 135-meter passenger ship. We note that a passenger ship, scheduled to be completed and delivered in the first semester, was delivered to the intra-community customer at the end of July 2025 due to delays in the supply chain, but the ship's execution degree was about 95% on June 30, 2025," the company's report states.

Revenues from operating activities were mainly generated by ship production in Orşova, respectively 75.7%. Service provision (repairs), the volume of which decreased by 27.9% compared to the previous period, reaching a share of 11.2%, were mainly carried out at the Agigea branch, the report also states.

Operating expenses amounted to 45.9 million lei, 6.7% lower than in the first six months of last year, as inventory expenses decreased by 20.2% to 13.9 million lei. Depreciation and amortization expenses were 2.7 million lei, 16% lower than in the first half of last year, while other expenses increased by 22.3% to 10.8 million lei. Operating income amounted to 2.3 million lei, 61% lower than in the first six months of last year, to which was added a gain of almost 0.9 million lei from financial activities.

Last month, the Orşova Shipyard concluded seven contracts for the construction of seven river vessels, worth a total of 31 million euros, with deliveries to be made in 2026 and 2027. Sea Container Services and Longshield Investment Group (formerly SIF Muntenia) each own 47% of the Orşova-based river vessel manufacturer, whose stock market valuation is around 105 million lei.