Romania: Prospectiuni to sign contracts worth 250 mln lei ($65 mln) in 2017

Insolvent Romanian geophysical services provider Prospectiuni will sign contracts worth 250 million lei ($65 million/54 million euro) in 2017, its court-appointed administrator Euro Insol said on Tuesday.

In the first eight months of the year, Prospectiuni concluded contracts with an aggregate value of over 120 million lei for acquisition of geophysical 2D and 3D geophysical data and logging services with natural gas producer Romgaz, oil and as group OMV Petrom and local oil and gas producer AMROMCO Energy, Euro Insol said in a press release.

The company expects to conclude new contracts worth more than 130 million lei by the end of 2017. In order to deliver on these contracts Prospectiuni said it will employ more than 1,000 specialists and workers by the end of the year, with the total number of its employees exceeding 1,500.

Also by the end of the year, the company aims to repay all its debts amounting to 93 million lei.

Prospectiuni significantly pared its financial loss to 1.2 million lei in the first half of 2017 from 23.8 million lei in prior-year period and sees real chances to close the financial exercise with profit.

Prospectiuni entered insolvency in April 2016. The restructuring measures consisted in the closure of unprofitable non-core business lines, in increasing profitability of the logging division and in the boosting of commercial activity for core business.