LARGEST COMPANIES’ PROFITS UP IN ARMENIA
news.am
April 21 2010
Armenia
The RA State Revenue Committee has reported the information on 344
largest Armenian companies for this February.
The companies’ sale proceeds totaled 143.2bn AMD (U.S. $376.4m) –
a 19.9% increase as compared with last February. Thus the average
profit per company totaled 0.4bn AMD (or U.S. $1.1m).
About 200 of the 344 largest taxpayers ensured an increased in their
profits, and 120, including Ardshininvestbank, with its worst results
among the largest banks, registered a decrease in February proceeds.
The ten largest companies showed the best results: the Zangezur Copper
and Molybdenum Combine, Alex Grig, Electric Network of Armenia,
Rusal Armenia, ArmRusgazprom, Armenian Copper Program, City Petrol
Group, Dino Gold Mining, Agarak Copper and Molybdenum Combine, and
Pure Iron Plant. This February the ten leaders’ profit increased by
21.3bn AMD or ¾ of the total increase in the proceeds of all the
344 largest taxpayers.
The data suggest the following conclusions, which cast a shadow on the
joy. First, the natural monopolies and mining industry, importer and
oil traders remain and (will remain) the leaders in profit. Secondly,
high-level concentration will remain a feature of the Armenian economy.
Last year showed well what the lack of economic diversification, and
all the hopes placed on the largest taxpayers, can lead to. When the
global crisis reached Armenia, many of the "largest" faced serious
problems, which, in turn, immediately affected both the Armenian
economy (a 14.4% decline in GDP last year as compared with 2008)
and tax revenues (a 15.9% decrease).