74JJ Petrol 4.24%

RNS Number:9538X
Petrol AD
07 June 2007

                                 PRESS RELEASE


                 PETROL AD FIRST QUARTER 2007 RESULTS PUBLISHED

               Working capital debt reduced under BGN 60 million


Sofia, 7 June 2007.


Petrol AD, Bulgaria's leading filling stations and storage capacity operator
published its first quarter 2007 results. Petrol AD posted BGN 229.7 million of
revenues vs. 316.4 during 1Q 2006. These produced a gross margin of BGN 32.2
million vs. BGN 25.8 million in 1Q 2006 and EBITDA of BGN 13.8 million vs. BGN
7.9 million in 1Q 2006. Operating expenses were down from BGN 26.3 million to
BGN 23.9 million. Net financial costs increased to BGN 13.0 million due mainly
to BGN 9.0 million loss on hedging in a price uptrend market environment. As a
result Petrol AD posted a net loss of BGN 3.3 million vs. a net profit of BGN
0.3 during 1Q 2006.


In the company's balance sheet the non-current assets and liabilities stayed at
stable levels of BGN 288.7 million and BGN 212.9 million respectively. The
capital base of the company stood at BGN 172.2 million. Inventories were up to a
level of BGN 158.0 million (compared to BGN 104.3 at 1Q 2006) in anticipation of
possible disruptions of supplies from Lukoil Bulgaria for Petrol's network of
filling stations taking into account Lukoil Bulgaria's legal action against
Petrol AD. This led to an increase of the interest bearing debt to BGN 302.7
million, consisting of Petrol's Eurobond and Local bond issues and the working
capital lines available to Naftex Petrol. As the legal dispute unfolds the
operational relationship with Lukoil Bulgaria proceeds on a business-as-usual
basis hence management has already undertook measures to gradually bring the
inventory levels down. As a result the working capital debt has been reduced
under BGN 60.0 million as at today. Over the months of June and July 2007 the
inventory will be further brought down to such levels as to ensure both
operational efficiency and stability.


Wholesale.

The drop in consolidated sales is attributable to the wholesale division Naftex
Petrol, which has started to apply since 4Q 2006 a new pricing formula for its
products based on the international quotations for the respective types of
fuels. Until then the company was using as a benchmark the prices of Bulgaria's
only refinery, owned by Lukoil. The new pricing mechanics implies daily
adjustment of prices and has positioned Naftex Petrol generally above the main
competitor on the market and reflects a strategy whereby the focus is on gross
margins rather than on volumes. This led to a gross margin in wholesale of BGN
9.3 million vs. BGN 6.8 million during 1Q 2006. Going forward the intention is
to apply a balanced approach focused on margins and taking into account the
volumes sold and the competitive environment in order to safeguard the company's
market position.



Retail.

The retail business demonstrated stable growth in 1Q 2007 with sales increasing
by 27% from BGN 123 million in 1Q 2006 to BGN 156.1 million in 1Q 2007 which is
attributable mainly to a 24% increase in volumes sold. This led to a gross
margin in retail of BGN 20.5 million vs. BGN 16.0 million during 1Q 2006 and
EBITDA of BGN 7.6 million vs. BGN 5.8 million in 1Q 2006. The net profit during
1Q 2007 has increased by 39% to BGN 3.9 million compared to BGN 2.8 million in
1Q 2006.


Legal dispute with Lukoil Bulgaria



In March 2007 Lukoil Bulgaria filed a claim in the Sofia City Court against
Petrol AD demanding BGN 89.9 million of alleged amounts due. The first hearing
of the court took place in May 2007. Lukoil Bulgaria were asked by the court to
specify their claim in a more understandable manner and to make a breakdown of
the amounts claimed for each of the five years envisaged in the claim. Next
hearing is scheduled for September 2007.



On its turn Petrol AD filed a claim against Lukoil Bulgaria for BGN 118.0
million of unpaid expenses due to Petrol AD since 2001 relating to the execution
of the retail fuel supply agreement between the parties signed in 2001. The
first hearing under this case was scheduled for the end of May 2007 but was
postponed for the second week of June 2007 allowing  Lukoil Bulgaria's lawyers
more time to prepare their defense.



Petrol AD is confident in the strength of its legal position based on legal
opinions sought from both in-house and outside lawyers and law firms, including
reputed international law firms represented in Bulgaria.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

QRFUUUPAQUPMGUM

Petrol 4.24% (LSE:74JJ)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024

Petrol 4.24% (LSE:74JJ)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024