SANTIERUL NAVAL ORSOVA S.A.

ANNUAL REPORT FOR FINANCIAL YEAR 2021

CONTENTS PAGE

Annual report of the board of directors 2 – 35

Remuneration report 36 - 42

Statement of compliance with the Bucharest stock exchange corporate governance code 43 - 48

Statement of Financial Position 49 - 50

Statement of Comprehensive Income 51 - 52

Statement of Changes in Equity 53

Statement of Cash Flows 54 – 55

Notes to Separate Financial Statements 57 – 119

Statement 120

Independent Auditors Report 121 -128

________________________________________________________________________

ANNUAL REPORT OF THE BOARD OF DIRECTORS ACCORDING TO LAW NO. 24/2017 AND THE ASF REGULATION NO. 5/2018 concerning the issuers of financial instruments and market operations AND OF THE MFP ORDER NO. 2844/12.12.2016 FOR THE FINANCIAL YEAR CONCLUDED ON 31.12.2021

Date of the Report: 7 th of March 2022

- Name of the trading company: ŞANTIERUL NAVAL ORŞOVA S.A.;

-

- Registered office: 4, TUFĂRI Street, ORŞOVA, MEHEDINŢI County;

- Telephone/fax:0252/362399 0252/360648;

- Single registration code issued by the Trade Register: RO 1614734;

- Registered number with the Trade Register: J25/150/03.04.1991;

- Regulated market where the issued securities are traded: it is a company whose shares are traded on a regulated market, respectively it is listed in the Bucharest Stock Exchange, symbol: SNO

- Subscribed and paid in share capital: 28,557,297.5 Lei

- Class, type, number and core values of securities issued by the company:11.422.919 common shares, nominative, of 2.5 Lei each;

- The company is registered with ASF– Securities Record Office – with Certificate no. 111/02.03.1998, updated on 06.10.2008 further to the increase in share capital as a result of the merger.

ŞANTIERUL NAVAL ORŞOVA S.A. Nr. RC J25/150/1991 CIF: RO 1614734 Capital social: - subscris 28.557.297,5 lei - varsat 28.557.297,5 lei Str. Tufări, nr. 4, Orşova, 225200, Mehedinţi Tel.: 0252/362.399; 0252/361.885; Fax: 0252/360.648 E-mail: ; Codul LEI (Legal Entity Identifier): 254900UXAJ8TPIKLXG79 Cod IBAN: RO96RNCB0181022634120001- B.C.R. Orşova Cod IBAN: RO59BRDE260SV03176142600- B.R.D. Orşova Cod IBAN: RO59BRDE260SV03176142600- B.R.D. Orşova

1. ANALYSIS OF THE COMPANY’S ACTIVITY

1.1. Description of the company’s core business

a) Description of the company’s core business

The main activity of "Şantierul Naval Orşova" S.A. consists in the construction of river ships (CAEN code rev.2: 3011 “Construction of ships and floating structures”). This activity represented 92,47% of the 2021 turnover, most of the ships being exclusively designed for intra-community supplies.

Although in the previous years, at Agigea Branch, the activity which highly contributed to the turnover consisted in renting the ships, especially barges, during the year 2021, the most significant activity for the branch’s turnover was that of repair work of river/marine ships (71,03%). The income from the barges’ rental represented 16,43% out of the 2021 turnover (26,60% during 2020). The branch’s turnover has known a slight increase since the previous year, by 5,05% which also caused an increase in its total turnover by 0,1% (from 6,6% during 2020 to 6,7% during 2021).

b) Stipulation of the set up date of Șantierul Naval Orșova SA

The company was set up under Government Decision No. 19/10.01.1991, by converting and taking over the patrimony of the former Orsova Shipyard from the Ministry of Transports and Telecommunications.

The company is registered with the Trade Register under no. J25/150/1991.

In 1998, it became a privately-owned company, with domestic and foreign capital through the sale of the shares held by the former FPS ( State Owned Property Fund ).

c) Description of any merger or significant reorganization of the company, its subsidiaries or controlled companies during the financial year

There were no such events in 2021.

The only merger since the company’s set up until the present days took place in 2008. It is about a merge by absorption between Şantierul Naval Orşova SA, Mehedinţi County – the absorbing company - and S.C. Servicii Construcţii Maritime SA Agigea, Constanţa County – the absorbed company. Following this merge, the headquarters remained in Orşova and the former company in Agigea became a branch of Şantierul Naval Orşova SA. Occasioned by this, the social capital of the company increased from 21.643.150 lei to 28.557.297,5 lei, and the number of the shares increased from 8.657.260 to 11.422.919 shares, each share having a nominal value of 2.5 lei/share. The social capital and the number of shares have remained the same from the fusion until the date of the present report.

d) Description of assets acquisitions and/or sales:

Acquisitions and sales of assets are described in section 5.4 of this report and in the NOTES to the financial statements for 2021, which are attached to this report.

e) Description of the main results of the company’s activity assessment:

1.1.1. General assessment elements for the period under review (year 2021):

• total income, out of which: 75.533.784 lei

▪ Agigea Branch 5.104.612 lei

• total costs 75.022.945 lei

▪ out of which Agigea Branch 7.269.944 lei

• gross profit, out of which: 510.839 lei

▪ Agigea Branch -2.165.332 lei

▪ Orsova headquarters 2.676.171 lei

• market share held:

▪ the production obtained at the headquarters addresses the market share of intra- community river ships, where the company holds a share of approximately 1 - 2%;

▪ the rental of ships (barges) through the branch was done during the last part of the year, within the country where the share is approximately 4%;

• as of 31.12.2021, the company’s available funds in accounts amounted to 17.452.475 Lei, out of which:

▪ 3.094.120 lei in the Lei account

▪ 14.347.867 lei in the foreign currency accounts

▪ 6.254 lei , petty cash

▪ 4.234 lei other values, in petty cash

The main characteristics of the year 2021, compared with the previous years, could be shortly synthesized by:

- Maintenance of a relatively low demand on the river vessel construction market, on which our company performs activity, even if a price growth was felt for the vessels sale, that was a consequence of raw materials price increase on one hand and of services, on the other hand. Even under these conditions, the company succeeded in having covered the entire production capacity for the year 2021 and also to preserve an increased level of efficiency to the head-office.

- A decrease in the activity from Agigea Branch in comparison to the previous years was noticed subsequently to the rental of the 3 barges out of 5 type vessels, that the company owns at this branch. The income from the ships’ repairing activities became predominant over the branch’s turnover yet not sufficient to cover the operating costs.

- Our good name which our company has on the shipbuilder market in Europe, highly contributed to obtaining new orders.

- The activity of the year 2021 was carried out in the epidemic context of the COVID-19 pandemic.

More information and comments regarding these indicators and the company’s activity are presented under 4 point of the present report and in the NOTES to the financial statements, which are attached to this report.

1.1.2 The assessment of the technical level of the trading company

The work scope of the company is diverse, the two head-offices having different purposes, yet complementary for achieving the scope. Thus, the activities carried out consist in: the construction and

Șantierul Naval Orșova makes available for its clients a wide range of products. At present, it is possible to build any type of river ship for transport of goods (containers, fuel transport tanker, chemical products, food products, pharmaceutical) yet also the building of coaster vessels and passenger vessels.

Company management team manifested and manifest a continuously preoccupation for production process modernization through the acquisition of most modern tools specifically for shipbuilding. Being aware that the company should maintain an appropriate equipment level in according to the actual requests, major investments were done , for the acquisition of modern machinery, tools and equipment specific to shipbuilding. Training courses were done, qualified employees were selected, experience share within the country and abroad, yet also modernization of the already existing installations both at the head-office in Or șova and also at the branch in Agigea. Likewise, competitive equipment specific to shipyards has been imported, respectively (electric cranes 80+25to, board cutting machines with numerical control, painting and blasting equipment, welding sources in gas protective environments) and IT equipment, together with the necessary licenses and programs for a good operation.

If during the years 2013 and 2014 was carried out the modernization and capacity increase for launching and lifting of Orsova’s slipway, and at present there are in progress of completion of the modernization/repairing works for Agigea`s slipway, which was started 4 years ago and is about to be completed during the year 2022 (initially this action should have been completed during the year 2019, but this could not have been achieved because of objective reasons with reference to the delayed delivery of the 14 new wedge bogies which should replace the old ones, namely locking the slipway with the second coaster, respectively with the ships brought to repairing).

In the year 2021, for the head-office in Orșova, several welding machines, effective and automate were procured, as well as an OMNICUT cutting machine, two VTB-18000 air-heaters, an air dryer, an under-pressure pump and a belt saw, IT equipment. Likewise, the process of repair and modernization of the transport and lifting equipment carried on, the blasting station and the vertical quay were modernized.

At Agigea branch they proceeded with the repair and modernization of the launching slipway, 3 WELDYCAR bogies were procured together with two hydraulic pumps, an electrical forklift and two HYSTER forklifts, two welding equipments. As well, a container barrack was modernized into a storage place.

The long and fruitful collaboration with partners from the Netherlands may be attributed to the fact that the company, had been aiming at meeting their requirements, especially, by rigorously observing the quality standards imposed. Special care was given to the execution of the touch up work, especially in the esthetical areas.

The implemented quality system is able to cope with the most modern requirements, and the company is certified by Lloyd Register Quality Assurance. The company has obtained during the year 2019 also the Quality System Certification in compliance with the new standard DIN ISO 9001:2015 (the certificate no. 10186440 field “ Construction and repair of ships and boats”).

SANTIERUL NAVAL ORSOVA SA has at its disposal:

- Procedures : - Documents control – revision 1/03.03.2011

• Registration Control – revision 1/27.05.2014

• Control of non-conform product – revision 2/ 12.01.2018

• Corrective actions – revision 2/12.01.2015

• Preventive actions – revision 2/12.01.2015

- Working instructions

• Purchased material/products’ acceptance

• Release from storages – revision 1/13.10.2012

• Testing the product provided by the Client – revision 1/13.01.2012

• Maintenance of the equipments– revision 1/08.11.2012

The favourable technical situation of Orşova Shipyard represents the premises for long-lasting progress and is given by the following facts:

• good locations for both the headquarters in Orşova (town situated on the Danube’s bank) and the Agigea Branch (Constanţa harbour);

• adjustment to the market demands is highly possible, the medium-sized shipyard opens the perspective of business diversity;

• pollution is at normal levels, (pollution does not constitute any disturbing factor);

• range of external deliveries and services is beyond 95% from the turnover;

• personnel structure is balanced and correlated with the requirements of the technological process; we have noticed, though, an increase of medium age of personnel, in parallel;

• endowment with specific fixed assets is to an acceptable level, comparable to other competing shipyards; in this respect and many years ago, the company has started an investment programme aimed, on one hand, at increasing the weight of active fixed assets, and on the other hand at replacing obsolete fixed assets with more efficient ones that can lead to enhanced productivity; by means of this strategy, the company intended to ensure increased flexibility and efficiency of fixed assets and bringing them to a technical and technological level that would allow global alignment and building of products that meet the standards required by foreign partners;

• procurement of ships mean the conclusion of direct contract agreements with the shipyards equipping the ship hulls or with European seafarers;

• for shipbuilding, there is a certain stability of intra-community clients (from Netherlands, Belgium, Germany, Austria);

The year 2021 did not bring any major modifications regarding the shipbuilding requests for marine/inland vessels, these being at a medium level, even most recent information from the ship market shows that the present situation will be preserved also during the year 2022, and also during the years to come. This is the reason why we consider that a strategy for future should be realistically analyzed, in order to can find – continuously- prices and financing policies to ensure the continuity of the activity under performance and competiveness terms.

1.1.3 Assessment of the technical supply activity (domestic sources, foreign sources imports).

In the year 2021, there were some major changes in terms of main supply sources of raw materials and materials, yet it was insignificant. As in the previous years, the equipment was mainly bought from

Material inventories were always at an optimum level, which ensured business continuity, hence there were no interruptions in the manufacturing process due to lack of raw materials and materials.

The main domestic suppliers of raw materials and materials, according to the value of the supplies and to their importance were:

• LIBERTY GALATI: for medium and thick plates;

• DUCTIL Buzău: welding consumables;

• LINDE GAZ Timişoara: technical gases

• S.C. PENTAGON SRL TECUCI: grinding stones

• NIMFA COM SRL BUC.: pipes and various profiles

• MAIRON S.A. GALATI various profiles

• TRIVALENT RM. VALCEA pipes and various profiles

• NORDEX TG. JIU safety gloves and glasses, filters

• EURONERA DISTRIBUTION gloves, screens, safety goggles, filters

Just as during the previous years, the main foreign supplier of materials:

• JULIUS HANDELS GMBH from Austria for profiles and pipes,

• OUTOKUMPU STAINLESS, for naval plates

• NELF MARINE PAINTS

Even if they were at a lower level than in previous years, collaboration with sub contractors continued also in the year 2021. These collaborations were necessary for the progress of the activity, referring to hull painting, steel construction, hull equipments, hull transport, etc. Among the collaboration companies we are mentioning the most important:

- MANELI SERV ship painting;

- GRIMEX SRL TARGU JIU ship equipment parts and metal constructions

- ELECTROSCOICA MAR SRL metallic structures

- ECO STEEL SOLUTION SRL for the ships’ repair activity

- BERG BANAT zinc coating

1.1.4 Assessment of sales activity

Turnover knows an increase of approx. 4,06 %, from the previous year. It is to be mentioned that while the income from the ships’ construction activity increased by approx. 4,16 %, the income from the

All 7 vessels finalized and delivered from Orsova in 2021 were scoped to be delivered to the West-European market, among which there was the second coastal ship out of the two which constituted the litigation with the company VEKA.

Please see below a comparative statement of intra-community supplies and Romania, for the last three years, expressed in percentage of total ship delivered (according to IFRS 8):

According to the above mentioned information, the company Rensen Driessen continued also in 2021 to detain the first position regarding the amount of the deliveries.

The contractual payment terms were ensured either through advance payments from 10% up to 75% and payment of the difference through letter of credits.

For the future, just as during the previous years, the main concern of the board and executive management is to find solutions for concluding contracts at prices that would ensure development in cost-effective conditions and with guaranteeing the price payment. This is also due to the fact that under the new foreign conditions on the market in which we operate, rapid and unexpected changes can always occur from one day to another.

Under the new market conditions, competition in this activity field is quite tough, because most orders come from the European Community and business partners are more demanding in terms of quality work. The company has a technical and technological level that meets these requirements and we believe it is able to win more contracts compared to its competitors.

The company’s main competitors in terms of shipbuilding and repair works are the following, just as in the previous years:

- Domestic – all shipyards

- Abroad – especially shipyards in China and Korea, and then Poland, Serbia, Turkey, Slovakia, Czech Republic and Ukraine.

1.1.5 Assessment of aspects related to employees / company staff

Lack of personnel continues to manifest also in the year 2021, yet only to a small extent, all steps taken at executive level by recruiting new skilled workers in the trades of welders and locksmiths who will replace those who left, especially because of retirement. Related to the company’s staff, we may conclude the following:

- on one hand, it is registered an aging phenomenon of the staff, which will continue also in the next period;

- on the other hand, it is registered a decrease of qualified staff number, especially on the main works (welders and locksmiths) this fact forced and forcing us to outsource some steel construction works, fact which will not be present concurrency at the hiring.

- Not on the last place it is a growth of working force fluctuation.

Nevertheless, during the year 2021, the number of staff increased by 4,01% in comparison to the year 2020.

The average number of employees throughout 2021 is 359 employees compared to 374 employees in the previous year. As of 31.12.2021, the number of employees was of 361, out of which 314 at the headquarters in Orşova and 47 at the Agigea Branch.

Out of the total number, as of 31.12.2021, the situation per activity sectors is as following:

• 359 – industrial activity

• 1 – canteen activity

• 1 – medical activity

The structure is as following:

• 45 – technical, financial, professional and administrative staff, out of which:

o 38 – employees in Orsova (out of which 32 with higher studies);

o 7 – employees in Agigea (out of which 5 with higher studies).

• 5 foremen, out of which 5 in Orsova;

• 311 workers, out of which:

o 271 employees in Orsova;

o 40 employees in Agigea.

Personnel structure in terms of gender is as follows:

• men – 309 persons (325 in the previous year);

• women - 52 persons (51 in the previous year).

During the year 2021, a number of 56 new employees and 77 releases were registered; the latter were released through: retirements, dismissals for reasons of employee’s character, expiry of the individual labour contract and with agreement from the parties, the latter being the most common cause.

A permanent preoccupation of the company’s management was to improve the skills of its employees, following that this activity becomes a permanent one also in the next period, according to the provisions in the Labour Code.

At the level of the company, there are legally, two unions formed.

Out of the total of employees, approximately 76% are members of a union, and the relations between the administration and the employees on good terms.

Other aspects concerning the employees/the company’s staff have been shown in the NOTES to the financial situations which are integer part of the present report.

1.1.6 Assessment of the impact of the company’s core business on environment

As a whole of actions, documents or programmes that identify, describe and assess the potential material effects on environment, the environmental policy of SC Santierul Naval Orsova SA is closely related to both the company’s economic policy and compliance with the principles of the European Directives on environment protection (CE Directive 2002/42/CE, SEA Directive 2001/42/CE and Habitats Directive 92/43/EC, Directive 2004/35/CE concerning the responsibility for the prejudice brought to the environment and DRM Directive), given that the entire company’s activity is developed in an area protected by law, in the area of the National Park “The Iron Gates”, focusing on the following main directions:

- integration of environmental considerations in the development and adoption of the company’s plans and programs;

- better use of primary resources of raw materials and energy, hence minimising waste, waste water, air and water pollution, and decrease of costs per product tonne;

- continuous improvement of environmental issues, especially the material ones, according to the environment management programs, action plans (integer part of the environmental permit) with targets, objectives, timelines and responsibilities;

- increase education related to environment protection by providing the organisational frame and implementing projects on waste water disposal, waste storage (especially hazardous ones), soil protection;

- compliance with Romanian environment legislation and alignment to the European Union’s Directives;

- mitigation of impact of the company’s core business on environment;

The company has a monitoring system for all environment factors by specialised institutes and companies, based on firm contracts.

It is worth mentioning the maintenance of insignificant impact on the environment in activity of heating and hot water supplying for the company’s employees, following the conservation from 01.09.2010 of heating plant. The heating of our company (administrative centre and locker rooms) being done presently helped by 8 (eight) water heating power plants, with 36 kw power each, and one of 24 KW, type ROMSTAL EKCO. L.1, with boilers of high capacity for hot water provision.

In the same idea, in the second half of 2019, the modernization of the company’s cranes started, operation which is carried on also at the moment, in order to restrict influence on the environmental factors.

During 20201, the company fulfilled all the obligations resulting from the Environment Permit no. 21/27.02.2013, valid for a period of 10 years, until 27.02.2023, approved by the National Agency for Environment Protection Mehedinți for the years 2021 and 2022, complying also with the obligation of self-monitoring discharged wastewater imposed by the Waste Water Management Permit no.108/20.08.2020, avoiding the occurrence of any effect with a negative impact on the environment. (proof is the inspection documents issued by the representatives of the environment authorities that are without any measure of correction during 2021).

1.1.7 Assessment of research and development activities

Just as in the previous years, during 2021 the company did not record any research and development expenses, and for 2022 it does not intend to incur such expenditure, due to the fact that the technical design of the built ships is usually provided by clients or they use designs bought in previous years with the right to use them at new constructions to be done in the future.

1.1.8 Assessment of company activities regarding risk management

Starting from the specific of the main activity of the company, respectively shipbuilding and floating structures construction, and also fact that our products are sold in intra community area, can be identified a series of risks. In this moment, because of the concurrencies medium, of quick swings at European level and worldwide it is normal as the exposure degree (vulnerability) at risks to be much higher than in the past periods.

Also, therewith the company felt and still feels, fully, the effects of the economic and financial worldwide crisis.

Therefore, the list of potential risk sources could include:

- market risk

- price risk

- currencies risk

- environment risk

- information security risks

- cash-flow risk, etc.

As it was shown before, the decrease of ship request, accompanied by lowering of selling prices, as an effect of worldwide economic crisis, affected in latest years, including 2021, directly, the company’s activity.

To overcome this difficult period, the executive staff had to initiate actions and program aimed at helping with costs management, thus ensuring its resistance on the river ship market. This aims at reducing costs according to the evolution of foreign markets, which continues to be a basic concern of the company’s management.

Considering the estimates/forecasts on the exchange rate developments for 2021, the company made some small transactions for covering the currency risk (hedging). These operations with derivates were effective, being concluded in 2020 and completed in 2021 at a parity, above the official one from the respective period, which contributed to an unfavourable difference in the exchange rate for 2021 from such operations to be of approximately 34 thousands of lei.

Also, to assure a better security of informatics system and data basis, company continued the action started in the previous years- when a project of reconstruction of computer network was performed and bought an informatics system based on Oracle technology – by purchasing new IT equipments which ensure security.

Other aspects related to the risk management (credit, currency, liquidity) have been submitted in the NOTES to the financial statements, which are an integrant part of this report.

1.1.9 Perspectives on the company’s activity

In terms of the company’s business perspectives, we can say the following:

- the company has over 29 years of experience in shipbuilding and repairs; these are performed at quality standards imposed by foreign clients and the company’s name is already well-known to the West-European shipbuilders;

- the financial crisis has resulted in reduced demand for ships and price decreases, so that starting with 2009 the company was forced to resize its headcount; this action continued until early 2013; as of 2014, no layoffs have been done;

- At present, the company has concluded contracts for 2022 which assure 100% of production capacity. Negotiations which are done in the present, for new contracts signing, give us a perspective of activity continuation, by new contract signing, for the next years also, to this date contracts existing also for the year 2023;

- with regards to the Agigea Branch, it currently has 6 ships (hydro-clap barges, floating cranes, which are described at section 2.1 b of this report), out of which 5 barges have been repaired and obtained the exploitation authorisations; because of the pandemic, during the year 2021, they were lent only during the last part of the year, and at present the branch avails of the necessary facilities and capacity in order to carry out ship building and repair works, the activity of ship repair works having known an increase from the previous years.

- Considering the concluded contracts, the production structure and salary costs evolution and those with raw materials and materials, the company has foreseen in the Budget of income and expenses for the year 2022 on an amount of income, expenses and profit that are close to the one accomplished during the year 2021.

- the company also intends for 2022 to have higher investments, consisting in:

o Continue works for finalising the modernisation of the slipway at Agigea, namely replacement of wedge bogies; this work will be finished during 2022 and will increase safety of ships lifting-launching operations;

o Welding machines acquisitions, especially for the head-office in Orsova (welding techniques and robots)

o IT equipments

o Purchase of ventilation systems

o Purchase of machinery and equipment for mechanical cutting, profiling

o Purchase of photo-voltaic plants

o Purchase of special tools and devices

o Modernization of cranes

o Modernization of technical platforms, inner roads and buildings

o Modernization/purchase of rolled mill

2 COMPANY’S FIXED ASSETS

2.1 The company’s main production capacities are located at the headquarters in Orşova (4 Tufări Street, Orşova, Mehedinţi county), and at the branch in Agigea, at the premises of Constanţa South Harbour, Constanţa County.

During the year 2021, no major change was produced in their consistency, the biggest expenses of investment were those related to the repair, replacement and modernization of the existing ones, as shown. We stipulate the fact that the two lands, amounting to 4.924 sm surface, owned in Orsova, in Gratca area, were sold through bidding at the end of the year 2021.

a) The company owns 85.790 square meters of land, confirmed by Land Registry excerpts, to the administrative building;

The fixed assets at the headquarters in Orşova are mainly formed of:

- a lifting-launching hold of 1,800 t with ten wires on a length of 100 linear meters – used for launching ships with a maximum length of 135 linear meters and a width of 15 linear meters, which one was modernized in 2014;

- a technological platform that allows the simultaneous assembly of 5 ships and the execution of sections and block sections related to shipbuilding;

- 5 portal cranes of 80+25 t purchased in recent years for the assembling platform and 2 portal cranes of 16 t together with 2 magnetic beams for handling plates in the plates warehouse and the blasting station and also a 5 to Gantry crane, purchased during the year 2019; these offer much more safety and lead to increased productivity by replacing the existing crane trucks, which were worn out and obsolete;

- 1 cutting machine in OMNIMAT coordinates based on computer programs and 4 with OMNICUT plasma, commissioned in 2007 and 2009, 2018 and 2021;

- Hydraulic press for plate bending , bought in 2017

- Compressors (4 pcs.) type ACU 9 L8 from HAFI;

- a horizontal automated blasting and painting line purchased in 2009 for plates of up to 3000 mm width;

- buildings, storages, material warehouses, administrative building, a floating dock;

- cranes of 10 - 50 t, welding and painting equipment, plate rolling machine, 2 hydraulic bending-off presses for profiles of 200 t for profiles moulding at the retreat areas (stern, fore part), etc.

b) At the Agigea Branch, the company owns 210 square meters of land located in Constanţa, with a building where the company’s former administrative headquarters was located until 2009, before the merger. Currently, the company’s offices are in Agigea, and the building in Constanţa, in the year 2016 was put in conservation, lacking solutions for renting. During the last period of 2019 this building was rented, being re-classified as real estate investment. The rental contract was extended up to the end of 2023, including clauses with regards to the renegotiation of the fee at every 5 years and a value of the annual rent subject to indexation. The cadastral intabulation work was suspended until the litigation with the Town Hall in Constanta is closed, this litigation concerns certain amendments brought to this building by the old owner. During the first half of the year 2022, the works ordered by the The surface of 57,710 square meters in Agigea, where the branch currently develops its activity, is property of the State-Owned Company “Administraţia Porturilor Maritime Constanţa” (Administration of Maritime Harbours), and the branch has a usage contract for the harbour area with this company.

Main fixed assets owned by the Branch are the same as in the previous years, mentioning that within the year 2021 were carried on a series of expenses for repairing and modernizations of the slipway.

Regarding the slipway, within year 2015 was done the first stage of replacing damaged railways, in the year 2016 was solved problem of traction system for vessels launching, improvement action continues also along 2017 and 2018.In 2019, the investment plan considered also the replacement of the wedge bogies at this stowage. The 14 bogies which must be replaced had been fabricated in the year 2019, part-wise replaced during 2020, following that during 2021, the replacement is finalized.