TIDM74JJ
RNS Number : 6495R
Petrol AD
25 August 2010
Consolidated financial statements
as of June 30, 2010
and Notes to the consolidated financial statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended June 30, 2010
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| |Note | Six | | Six | | Three | | Three |
| | | months | | months | | months | | months |
| | | ended | | ended | | ended | | ended |
| | | June | | June | | June | | June |
| | | 30, 2010 | | 30, 2009 | | 30, 2010 | | 30, 2009 |
| | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Revenue | 6 | 506,468 | | 470,456 | | 267,847 | | 266,491 |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Other income | 7 | 2,256 | | 7,193 | | 1,131 | | 5,569 |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Cost of goods sold | | (459,454) | | (426,805) | | (243,427) | | (239,493) |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Materials and consumables | 8 | (4,655) | | (4,085) | | (2,149) | | (1,944) |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Hired services | 9 | (15,319) | | (17,722) | | (8,199) | | (10,269) |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Employee benefits expenses | 10 | (10,715) | | (11,239) | | (5,472) | | (5,508) |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Depreciation and | 14 | (7,462) | | (9,131) | | (3,545) | | (4,146) |
| amortization expenses | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Other expenses | 11 | (2,729) | | (3,601) | | (1,445) | | (2,367) |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Finance income | 12 | 2,997 | | 1,784 | | 1,612 | | 769 |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Finance costs | 12 | (20,806) | | (11,541) | | (12,186) | | (7,614) |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Share of profit of | 15 | 130 | | 335 | | 24 | | 146 |
| associates | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Profit (loss) before taxes | | (9,289) | | (4,356) | | (5,809) | | 1,634 |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Income tax benefit | 13 | 591 | | 103 | | 557 | | (424) |
| (expense) | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Net profit (loss) for the | | (8,698) | | (4,253) | | (5,252) | | 1,210 |
| period | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Attributable to: | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Owners of the Parent | | (8,607) | | (4,211) | | (5,187) | | 1,255 |
| company | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Non-controlling interest | | (91) | | (42) | | (65) | | (45) |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Total comprehensive income | | (8,698) | | (4,253) | | (5,252) | | 1,210 |
| for the period | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| | | | | | | | | |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
| Earnings per share (BGN) | 29 | (0.14) | | (0.07) | | (0.08) | | 0.02 |
+-----------------------------+------+-----------+----------+-----------+----------+-----------+-+-----------+
These consolidated financial statements have been approved on behalf of Petrol
AD by:
Svetoslav Yordanov
Desislava Todorova
Executive Director
Chief Accountant
August 24, 2010
(The accompanying notes from page 8 to page 36 are an integral part of these
consolidated financial statements)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of June 30, 2010
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| |Note | June | | March | | December | |
| | | 30, | | 31, | | 31, | |
| | | 2010 | | 2010 | | 2009 | |
| | | BGN'000 | | BGN'000 | | BGN'000 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Non-current assets | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Property, plant and equipment | 14 | 164,252 | | 165,970 | | 168,173 | |
| and intangible assets | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Investments in associates | 15 | 15,169 | | 15,405 | | 15,299 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Goodwill | 17 | 18,297 | | 18,297 | | 18,297 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Deferred tax assets | 13 | 2,733 | | 1,634 | | - | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Loans granted | 18 | 63,016 | | 21,034 | | 21,034 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Total non-current assets | | 263,467 | | 222,340 | | 222,803 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Current assets | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Inventories | 19 | 80,241 | | 66,700 | | 55,902 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Loans granted | 18 | 7,877 | | 42,338 | | 35,961 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Trade and other receivables | 20 | 71,053 | | 74,933 | | 78,246 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Cash | 21 | 5,264 | | 11,765 | | 18,549 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Total current assets | | 164,435 | | 195,736 | | 188,658 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| Total assets | | 427,902 | | 418,076 | | 411,461 | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Shareholder's equity | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Share capital | 22 | 63,566 | | 63,566 | | 63,566 |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Reserve from adoption of IFRS | 23 | 9,276 | | 9,364 | | 20,657 |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Legal reserves | | 18,864 | | 18,864 | | 18,864 |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Accumulated loss | | (77,905) | | (72,806) | | (80,679) |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Total equity, attributable the | | 13,801 | | 18,988 | | 22,408 |
| owners of the Parent Company | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Non-controlling interest | | (192) | | (127) | | (101) |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Total equity and reserves | | 13,609 | | 18,861 | | 22,307 |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Non-current liabilities | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Borrowings | 24 | 195,854 | | 195,529 | | 195,505 |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Obligations under finance | 25 | 3,116 | | 3,508 | | 3,935 |
| lease | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Retirement benefits | 26 | 205 | | 205 | | 205 |
| obligations | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Deferred tax liabilities | 13 | - | | - | | 45 |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| Total non-current liabilities | | 199,175 | | 199,242 | | 199,690 |
+--------------------------------+------+----------+-+----------+----------+---------------------+
| | | | | | | | |
+--------------------------------+------+----------+-+----------+----------+----------+----------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of June 30, 2010 (continued)
+--------------------------------+------+---------+-+---------+-+----------+
| |Note | June | | March | | December |
| | | 30, | | 31, | | 31, |
| | | 2010 | | 2010 | | 2009 |
| | | BGN'000 | | BGN'000 | | BGN'000 |
+--------------------------------+------+---------+-+---------+-+----------+
| | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| Current liabilities | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| Trade and other payables | 27 | 186,072 | | 177,750 | | 171,695 |
+--------------------------------+------+---------+-+---------+-+----------+
| Borrowings | 24 | 25,393 | | 18,976 | | 15,290 |
+--------------------------------+------+---------+-+---------+-+----------+
| Obligations under finance | 25 | 1,633 | | 1,707 | | 1,746 |
| lease | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| Retirement benefits | 26 | 35 | | 35 | | 35 |
| obligations | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| Current income tax payable | 28 | 1,985 | | 1,505 | | 698 |
+--------------------------------+------+---------+-+---------+-+----------+
| | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| Total current liabilities | | 215,118 | | 199,973 | | 189,464 |
+--------------------------------+------+---------+-+---------+-+----------+
| | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| Total liabilities | | 414,293 | | 399,215 | | 389,154 |
+--------------------------------+------+---------+-+---------+-+----------+
| | | | | | | |
+--------------------------------+------+---------+-+---------+-+----------+
| Total equity and liabilities | | 427,902 | | 418,076 | | 411,461 |
+--------------------------------+------+---------+-+---------+-+----------+
These consolidated financial statements have been approved on behalf of Petrol
AD by:
Svetoslav Yordanov
Desislava Todorova
Executive Director
Chief Accountant
August 24, 2010
(The accompanying notes from page 8 to page 36 are an integral part of these
consolidated financial statements)
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
For the period ended June 30, 2010
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | Equity attributable to the owners of the Parent Company | | Non-controlling | | Total |
| | | | Interest | | equity |
| | | | | | |
| | | | | | |
| | | | BGN'000 | | |
| | | | | | BGN'000 |
+---------------+----------------------------------------------------------------------------------------------------------+----------+ +----------+ +
| | Share | | | Reserve | | | Legal | | Accumulated | | Total | | |
| | Capital | | | from | | | reserves | | loss | | | | |
| | | | | adoption | | | | | | | | | |
| | | | | of IFRS | | | | | | | | | |
| | BGN'000 | | | BGN'000 | | | BGN'000 | | BGN'000 | | BGN'000 | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Balance at | 63,471 | | 21,780 | | 18,864 | | (67,395) | | 36,720 | | - | | 36,720 |
| January 1, | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Loss for the | - | | - | | - | | (4,211) | | (4,211) | | (42) | | (4,253) |
| period | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Total | - | | - | | - | | (4,211) | | (4,211) | | (42) | | (4,253) |
| comprehensive | | | | | | | | | | | | | |
| income | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Redemption | 97 | | - | | - | | 601 | | 698 | | - | | 698 |
| of own | | | | | | | | | | | | | |
| shares | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Reserve of | - | | (835) | | - | | 835 | | - | | - | | - |
| disposed | | | | | | | | | | | | | |
| assets | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Balance at | 63,568 | | 20,945 | | 18,864 | | (70,170) | | 33,207 | | (42) | | 33,165 |
| June 30, | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Loss for the | - | | - | | - | | (10,827) | | (10,827) | | (59) | | (10,886) |
| period | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Total | - | | - | | - | | (10,827) | | (10,827) | | (59) | | (10,886) |
| comprehensive | | | | | | | | | | | | | |
| income | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Redemption | (2) | | - | | - | | (16) | | (18) | | - | | (18) |
| of own | | | | | | | | | | | | | |
| shares | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Dividends | - | | - | | - | | 46 | | 46 | | - | | 46 |
| payable | | | | | | | | | | | | | |
| written off | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Reserve of | - | | (288) | | - | | 288 | | - | | - | | - |
| disposed | | | | | | | | | | | | | |
| assets | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Balance at | 63,566 | | 20,657 | | 18,864 | | (80,679) | | 22,408 | | (101) | | 22,307 |
| December 31, | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Loss for the | - | | - | | - | | (8,607) | | (8,607) | | (91) | | (8,698) |
| period | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Total | - | | - | | - | | (8,607) | | (8,607) | | (91) | | (8,698) |
| comprehensive | | | | | | | | | | | | | |
| income | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Reserve of | - | | (11,381) | | - | | 11,381 | | - | | - | | - |
| disposed | | | | | | | | | | | | | |
| assets | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
| Balance at | 63,566 | | 9,276 | | 18,864 | | (77,905) | | 13,801 | | (192) | | 13,609 |
| June 30, | | | | | | | | | | | | | |
| 2010 | | | | | | | | | | | | | |
+---------------+---------+----------+-----------------+----------+---------+----------+----------+----------+-------------+----------+-----------------+----------+----------+
These consolidated financial statements have been approved on behalf of Petrol
AD by:
Svetoslav Yordanov
Desislava Todorova
Executive Director
Chief Accountant
August 24, 2010
(The accompanying notes from page 8 to page 36 are an integral part of these
consolidated financial statements)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended June 30, 2010
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Cash flows from operating | | | | | | | |
| activities | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Net profit (loss) before taxes | (9,289) | | (4,356) | | (5,809) | | 1,634 |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Adjustments for: | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Depreciation/amortization of | 7,462 | | 9,131 | | 3,545 | | 4,146 |
| property, plant and equipment | | | | | | | |
| and intangible assets | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Interest expense, bank fees and | 7,794 | | 7,994 | | 3,862 | | 4,179 |
| commissions, net | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Shortages and scrapped assets, | 171 | | 823 | | 256 | | 589 |
| net of excess assets | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Provisions for unused paid | 287 | | 260 | | 218 | | (16) |
| leave and retirement benefits | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Impairment of assets | - | | 2 | | - | | - |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Loss on liquidation of assets | 138 | | - | | (85) | | - |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Net effect from applying the | (130) | | (335) | | (24) | | (146) |
| equity method | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Loss on transactions with | 121 | | 1,146 | | 121 | | 2,330 |
| derivative | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Gain on sale of property, plant | (284) | | (5,757) | | (154) | | (4,492) |
| and equipment | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Unrealized foreign exchange | 2,620 | | - | | 1,846 | | - |
| differences | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Cash flows provided | 8,890 | | 8,908 | | 3,776 | | 8,224 |
| by operating activities | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Interest and bank fees and | (1,747) | | (1,808) | | (925) | | (848) |
| commissions paid | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Income taxes paid | (899) | | (7,393) | | (62) | | (7,365) |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Operating profit (loss) before | 6,244 | | (293) | | 2,789 | | 11 |
| changes in working capital | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Increase (decrease) in trade | 14,256 | | (5,316) | | 6,930 | | 17,731 |
| payables | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Decrease (increase) in | (24,510) | | (4,747) | | (13,797) | | (12,829) |
| inventories | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Decrease (increase) in trade | 7,544 | | 16,983 | | 4,209 | | 9,456 |
| receivables | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| Net cash provided by operating | 3,534 | | 6,627 | | 131 | | 14,369 |
| activities | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+----------+----------+
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended June 30, 2010 (continued)
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Cash flows from investing | | | | | | | |
| activities | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Payments for acquisition of | (4,225) | | (5,999) | | (1,276) | | (4,732) |
| property, plant and equipment | | | | | | | |
| and intangible assets | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Proceeds from sale of property, | 452 | | 597 | | 293 | | 314 |
| plant and equipment | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Interest received on loans and | 440 | | 1,318 | | 433 | | 990 |
| deposits granted | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Net proceeds (payments) from | (121) | | (1,181) | | (121) | | (2,382) |
| transactions with derivatives | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Proceeds from (payments for) | (13,898) | | 8,000 | | (7,521) | | 950 |
| loans and deposits granted, net | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Net cash provided by (used | (17,352) | | 2,735 | | (8,192) | | (4,860) |
| in) investing activities | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Cash flows from financing | | | | | | | |
| activities | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Proceeds from bank and trade | 2,123 | | 1,295 | | 2,123 | | (4,153) |
| loans | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Payments for bank and trade | (231) | | (5,746) | | (98) | | (1,098) |
| loans and bond issue | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Payments for buy-back of own | - | | 698 | | - | | 834 |
| shares, net | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Dividends paid | (1) | | - | | - | | - |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Lease payments | (932) | | (1,122) | | (466) | | (523) |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Net cash provided by (used | 959 | | (4,875) | | 1,559 | | (4,940) |
| in) financing activities | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Net increase (decrease) in cash | (12,859) | | 4,487 | | (6,502) | | 4,569 |
| and cash equivalents for the | | | | | | | |
| year | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Cash and cash equivalents at | 18,118 | | 10,014 | | 11,761 | | 9,932 |
| the beginning of the period | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
| Cash and cash equivalents at | 5,259 | | 14,501 | | 5,259 | | 14,501 |
| the end of the period (see also | | | | | | | |
| note 21) | | | | | | | |
+---------------------------------+----------+----------+----------+----------+---------+----------+---------+
These consolidated financial statements have been approved on behalf of Petrol
AD by:
Svetoslav Yordanov
Desislava Todorova
Executive Director
Chief Accountant
August 24, 2010
(The accompanying notes from page 8 to page 36 are an integral part of these
consolidated financial statements)
Notes
to the consolidated financial statements
as of June 30, 2010
1. Legal status
Petrol AD (the Parent Company) is registered in the city of Sofia. The
registered office of the Parent Company is 43 Cherni Vruh Blvd, Sofia city. As
of June 30, 2010 the majority shareholder of Petrol AD is Petrol Holding AD with
55.47% ownership of the share capital. (see also note 22).
As of July 1, 1998 Petrol AD is registered as a public company in the public
register of the Financial Supervision Commission.
The main activities of Petrol AD and its subsidiaries (the Group) are retail and
wholesale of oil and non-oil products, rendering of transport and maintenance
services. The Parent Company is one of the oldest commercial companies in
Bulgaria and owns the largest network of fuel stations in the country.
These consolidatedfinancial statements were approved for issue by the Management
on August 24, 2010.
2. Basis for preparation of the consolidated financial statements and
accounting principles
2.1. General
The Group prepares and presents its consolidated financial statements in
accordance with International Financial Reporting Standards (IFRS), issued by
the International Accounting Standards Board (IASB) and the interpretations,
issued by the International Financial Reporting Interpretations Committee
(IFRIC), as approved by the European Union Commission (the Commission) and
applicable in the Republic of Bulgaria. IFRS as adopted by the Commission do not
differ from IFRS, issued by the IASB, and are effective for reporting periods
beginning on or after January 1, 2010, except for certain requirements for hedge
reporting in accordance with the IAS 39 Financial Instruments: Recognition and
Measurement, which has not been adopted by the Commission. The management
believes that if the hedge requirements have been approved by the Commission it
would have no influence on these consolidated financial statements.
These financial statements are prepared under the historical cost convention,
except for the assets (liabilities), which are stated at fair value - financial
assets (liabilities), including derivatives, reported at fair value in profit or
loss and represent consolidated financial statements, the preparation of which
is required by the Bulgarian accounting legislation and IAS 27 Consolidated and
Separate Financial Statements.
These consolidated financial statements have been prepared on accrual basis and
going concern assumption.
2.2. Applying new and revised IFRS
2.2.1. Standards and interpretations adopted with no effect on the financial
statements
The following new and revised standards and interpretations have been adopted
for the first time in these financial statements. Their adoption has not had any
significant impact on the presented information in these financial statements
but it may have in the future.
+----------------------+------------------------------------------+
| Amendment to IFRS 1 | Amendments relating to oil and gas |
| First-time Adoption | assets and determining whether an |
| of IFRS | arrangement contains a lease |
+----------------------+------------------------------------------+
| | |
+----------------------+------------------------------------------+
| Amendment to IFRS 2 | Amendments relating to group |
| Share-based Payment | cash-settled share-based payment |
| | transactions |
+----------------------+------------------------------------------+
| | |
+----------------------+------------------------------------------+
| Amendments resulting | Amendments relating to: |
| from April 2009 | |
| Annual Improvements | Scope of IFRS 2 Share-based Payment and |
| to IFRSs | revised IFRS 3 Business Combinations; |
| | IFRS 5 Non-current Assets Held for Sale |
| | and Discontinued operations - |
| | disclosures of noncurrent assets |
| | classified as held for sale or |
| | discontinued operations; |
| | IAS 1 Presentation of Financial |
| | Statements - current/non-current |
| | classification of convertible |
| | instruments; |
| | IAS 7 Statement of Cash Flows- - |
| | classification of expenditures on |
| | unrecognized assets; |
| | IAS 17 Leases - classification on leases |
| | of land and buildings; |
| | IAS 18 Revenue - determining whether an |
| | entity is acting s a principal or as an |
| | agent; |
| | IAS 36 Impairment of assets - unit of |
| | accounting for goodwill impairment test; |
| | IAS 38 Intangible assets -- measuring |
| | the fair value of an intangible asset |
| | acquired in a business combination; |
| | IAS 39 Financial Instruments: |
| | Recognition and Measurement - treating |
| | loan prepayments penalties as closely |
| | related embedded derivatives, scope |
| | exemption for business combination |
| | contracts and cash flow accounting; |
| | IFRIC 16 Hedges of a Net Investment in a |
| | Foreign Operation - restriction on the |
| | entity that can hold hedging |
| | instruments/ |
+----------------------+------------------------------------------+
| | |
+----------------------+------------------------------------------+
2.2.2. Standards and interpretations issued but not yet adopted
Changes in IFRS and interpretations adopted by IASB and IFRIC and approved by
the Commission as of the date of the financial statements, but effective for
annual periods beginning on or after February 1, 2010.
+--------------------------------+--------------------------------+
| Standard or interpretation, | Title of the standard or |
| effective date | interpretation |
+--------------------------------+--------------------------------+
| IFRS 1 (Revised), effective | First-time Adoption of |
| for annual periods, beginning | International Financial |
| on or after July 1, 2010 | Reporting Standards |
+--------------------------------+--------------------------------+
| Amendments to IAS 32, | Financial instruments: |
| effective for annual periods, | Presentation |
| beginning on or after February | |
| 1, 2010 | |
+--------------------------------+--------------------------------+
2.2.2. Standards and interpretations issued but not yet adopted (continued)
Changes in IFRS and interpretations, adopted by IASB and IFRIC, but not approved
by the Commission as of the date of the financial statements.
+--------------------------------+--------------------------------+
| Standard or interpretation, | Title of the standard or |
| effective date | interpretation |
+--------------------------------+--------------------------------+
| IFRS 9, effective for annual | Financial Instruments |
| periods beginning on or after | |
| January 1, 2013 | |
+--------------------------------+--------------------------------+
| Amendments to IFRIC 14, | The Limit on a Defined Benefit |
| effective for annual periods | Asset, Minimum Funding |
| beginning on or after January | Requirements and their |
| 1, 2011 | Interaction |
+--------------------------------+--------------------------------+
| IFRIC 19, effective for annual | Extinguishing Financial |
| periods beginning on or after | Liabilities with Equity |
| July 1, 2010 | Instruments |
+--------------------------------+--------------------------------+
| Amendments to IFRS 1, | First-time Adoption of |
| effective for annual periods | International Financial |
| beginning on or after January | Reporting Standards |
| 1, 2010 | |
+--------------------------------+--------------------------------+
| IAS 24 (Revised) effective for | Related Party Disclosures |
| annual periods beginning on or | |
| after January 1, 2011 | |
+--------------------------------+--------------------------------+
Most of the standards and interpretations stated above are not applicable to the
Group's activity. Therefore, they will have no material effect on the financial
statements.
2.3. Functional and presentation currency of the consolidated financial
statements
Functional currency is the currency of the primary economic environment in which
an entity operates and in which it primary generates and expends cash. An
entity's functional currency reflects the major transactions, events and
conditions that are significant to the Group.
The Group keeps its records and prepares its financial statements in the
national currency of the Republic of Bulgaria - the Bulgarian Lev, which is
adopted by the Group as its functional currency. Effective January 1, 1999, the
Bulgarian Lev is fixed to the EUR at the rate of BGN 1.95583 =
EUR 1.
These consolidated financial statements are presented in thousand Bulgarian
Levs.
2.4. Foreign currency
Transactions in foreign currency are initially recorded at the official rate of
exchange of the Bulgarian National Bank (BNB) as of the date of the transaction.
The foreign exchange rate differences, arising upon the settlement of these
monetary positions or at restatement of these positions at rates, different from
those when initially recorded, are reported in profit or loss for the period in
which they arise.
The monetary positions denominated in foreign currency as of June 30, 2010,
March 31, 2010 and December 31, 2009 are stated in these consolidated financial
statements at the closing exchange rate of BNB. The closing exchange rates of
BGN against USD for the respective reporting period of the consolidated
financial statements are as follows:
+------------------------------------+----------------------------+
| June 30, 2010: | 1 USD = BGN 1.59386 |
+------------------------------------+----------------------------+
| March 31, 2010: | 1 USD = BGN 1.45102 |
+------------------------------------+----------------------------+
| December 31, 2009: | 1 USD = BGN 1.36409 |
+------------------------------------+----------------------------+
2.5. Subsidiary companies and consolidation
The consolidated financial statements incorporate the financial statements of
the Parent company and its subsidiaries. A subsidiary is an entity that is
controlled by the Parent company. Control is the power to govern the financial
and operating policies of an enterprise, so as to obtain benefits from its
activities.
For consolidation purposes, the separate financial statements of the Parent
Company and its subsidiaries have been combined on a line-by-line basis by
adding together like items of assets, liabilities, equity, income and expenses.
For consolidation purposes all intragroup balances as at June 30, 2010, March
31, 2010 and December 31, 2009 and intragroup transactions, as well as all
intragroup profits and losses, including unrealised profits and losses as of
June 30, 2010, March 31, 2010 and 2009 are eliminated in full.
The carrying amount of the investments in each subsidiary, held by the Parent
company or any of the subsidiaries and the Parent company's portion of equity of
each subsidiary are eliminated.
The results of subsidiaries, which have been acquired or disposed by the Group
during the reporting period, are included in the consolidated statement of
comprehensive income from the date of the acquisition, till the date at which
control ceases.
Non-controlling interest is the equity in a subsidiary not attributable,
directly or indirectly to the Parent Company. Non-controlling interest is
represented within equity in the consolidated statement of financial position,
separately from the equity of the owners of the parent. In each business
combination the acquirer measure any non-controlling interest in the acquiree
either at fair value or by the proportional share of the non-controlling
interest in the identifiable net assets of the acquiree. Profit or loss or any
component of the other comprehensive income is attributed to the owners of the
Parent Company and non-controlling interests. The total comprehensive income is
attributable to the owners of the Parent Company and non-controlling interests
even if this results in the non-controlling interests having a deficit balance.
2.6. Associates
An associate is an enterprise over which the Group has significant influence.
Significant influence is the right of participation in, but not control over,
the financial and operating policy decisions of the investee.
Investments in associates are presented in the statement of financial position
in accordance with IAS 28 Investments in Associates, using the equity method of
accounting, according to which the investment is recorded initially at cost and
adjusted by post-acquisition changes in the investor's share in the net assets
of the associate.
2.7. Goodwill
Goodwill, arisen in business combination, is recognized as an asset at the date
when control over the company, subject to business combination, is acquired.
Goodwill represents the excess of the aggregate of the consideration
transferred, the amount of any non-controlling interest in the acquiree and the
acquisition date fair value of the acquirer's previously held equity interest in
the acquiree over the net acquisition date amounts of the identifiable assets
acquired and the liabilities assumed. When the acquisition cost is lower than
the fair value of the net assets acquired by the Group, the acquirer should
reassess the identification and measurement of the acquiree's identifiable
assets, liabilities and the cost of the business combination and any excess
remaining after that reassessment should be recognized immediately in profit or
loss.
Subsequent to its initial recognition goodwill is not amortized, in compliance
with IFRS 3 Business combinations, applicable for reporting periods after March
31, 2004. At the end of each reporting period a test for impairment is performed
(see also note 4).
2.8. Accounting estimates and reasonable assumptions
The preparation of consolidated financial statements in accordance with IFRS
requires management to make certain accounting estimates and reasonable
assumptions that affect some of the reported amounts of assets, liabilities,
revenues and expenses. These estimates and assumptions are based on the best
estimate of management, taking into account historical experience and analysis
of all factors of significance in the circumstances as of the date of the
consolidated financial statements. The actual results could differ from those
estimates, presented in these consolidated financial statements.
3. Definition and valuation of the statement of financial position and
the statement of comprehensive income items
3.1. Property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets are initially carried at
acquisition cost, including the purchase price, import duties and non-refundable
taxes, as well as any costs directly attributable to bringing the asset to the
location and condition necessary for it to be capable of operating in the manner
intended by management. After initial recognition, property, plant and equipment
and intangible assets are stated at cost less accumulated
depreciation/amortization and impairment loss, if any (see also note 3.2).
When property, plant and equipment include significant items having various
useful lives, such items are reported as separate assets.
Subsequent costs, including costs for replacement of components of property,
plant and equipment are capitalized in the amount of the asset, if they satisfy
the recognition principle. The carrying amount of the replaced item is
derecognized in accordance with the requirements of IAS 16 Property, Plant and
Equipment. All other subsequent costs are recognized as expenses for the period
as incurred.
Depreciation and amortization are charged over the estimated useful lives, using
the straight-line method.
3.1. Property, plant and equipment and intangible assets (continued)
The assets' estimated useful lives are as follows:
+------------------------------------+------------+--------------+
| Useful life | 2010 | 2009 |
+------------------------------------+------------+--------------+
| | | |
+------------------------------------+------------+--------------+
| Administrative and trade buildings | 25 years | 25 years |
+------------------------------------+------------+--------------+
| Property, plant and equipment | 2 - 25 | 2 - 25 years |
| | years | |
+------------------------------------+------------+--------------+
| Vehicles | 4 - 10 | 4 - 10 years |
| | years | |
+------------------------------------+------------+--------------+
| Office equipment | 7 years | 7 years |
+------------------------------------+------------+--------------+
| Intangible assets | 2 - 7 | 2 - 7 years |
| | years | |
+------------------------------------+------------+--------------+
Depreciation of an asset begins in the month following the month in which it is
available for use and ceases at the earlier of the date that the asset is
classified as held for sale, in accordance with IFRS 5 Non-current Assets Held
for Sale and Discontinued Operations and the date that the asset is
derecognized.
Land, assets under construction and fully depreciated assets are not
depreciated.
3.2. Impairment of property, plant and equipment, intangible assets and
goodwill
As of the end of each reporting period, the Group's management estimates if
there are indications for impairment of property, plant and equipment,
intangible assets and goodwill. If such indication exists, the recoverable
amount of the asset is estimated. Where it is not possible to estimate the
recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit, to which the asset belongs.
The recoverable amount is the higher of the asset's fair value less costs to
sell the asset and its value in use. If the recoverable amount of an asset (or
cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset is reduced to its recoverable amount. Impairment
loss is recognized in profit or loss immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(cash generating unit) is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognized
for the asset in prior periods. A reversal of an impairment loss is recognized
immediately in profit or loss.
Impairment loss is recognized for a cash-generating unit to which goodwill was
allocated if and only if the recoverable amount is lower than its carrying
amount. The impairment loss reduces the carrying amount of the assets in the
cash-generating unit, first the carrying amount of goodwill is reduced and then,
the carrying amount of other assets in the unit, pro rata on the basis of the
carrying amount of each asset to the total amount of the unit. The impairment
loss of goodwill could not be reversed.
3.3. Inventories
Inventories are stated at lower of cost and net realizable value. Cost comprises
purchase price, transportation, customs duties and other similar costs. Net
realizable value represents the estimated selling price less all estimated costs
to be incurred in selling.
Upon consumption, the cost of inventories is calculated using the following
methods:
+------------------------+----------------------------------------+
| Petroleum | Specific identification price of each |
| | delivery |
+------------------------+----------------------------------------+
| Fuel and other goods | Weighted average cost |
+------------------------+----------------------------------------+
| Materials | Weighted average cost |
+------------------------+----------------------------------------+
3.4. Financial instruments
A financial instrument is a contract that gives rights to both a financial asset
of one enterprise and a financial liability or equity instrument of another
enterprise.
Financial assets/liabilities are recognized in the statement of financial
position only when the Group becomes a party to the contractual provisions of
the instrument. Financial assets are removed from the statement of financial
position after the contractual rights for receiving cash flows have expired or
the asset is transferred and the transfer meets the derecognition requirements
under IAS 39 Financial Instruments: Recognition and Measurement. Financial
liability is removed from the statement of financial position when, and only
when, it is extinguished - that is when the obligation specified in the contract
is discharged, cancelled, or expires..
On initial recognition financial assets/liabilities are measured at fair value.
Transaction costs, which are directly attributable to the acquisition or issue
of the financial assets/liabilities are included in their value, except when the
financial assets/liabilities are measured at fair value through profit or loss.
For the purposes of subsequent measurement, in accordance with the requirements
of IAS 39 Financial Instruments: Recognition and Measurement, the Group
classifies the financial assets and liabilities as financial assets
(liabilities) measured at fair value through profit or loss, loans granted and
receivables and financial liabilities at amortized cost. The Group does not
apply this classification of the assets and liabilities for the purposes of
their presentation in the statement of financial position.
3.4.1. Financial assets (liabilities), measured at fair value through profit
or loss
After their initial recognition these financial assets measured at fair value
though profit or loss are measured at fair value as of the end of the reporting
period and all the differences from this value are recognized in profit or loss
for the period in which they originate.
3.4.2. Loans granted and receivables
Loans granted and receivables are non-derivative financial assets with fixed or
determinable terms for settlement, which are not quoted on an active market. The
assets from this category are presented in the statement of financial position
of the Group as receivables on interest loans, trade and other receivables and
cash.
Receivables on interest-bearing loans, trade and other receivables
After initial recognition, trade receivables and receivables on interest bearing
loans are measured at amortized cost by using the effective interest rate
method, less impairment loss, if any. Current receivables are not subject to
amortization. Impairment loss is accrued if any objective evidence exists, such
as significant financial difficulties of the borrower, probability the borrower
to be entered into liquidation and other (see also note 3.4.3).
Cash
For the purposes of the statement of cash flows preparation, cash comprise cash
in hand, cash at banks and cash in transfer, with the exception of restricted
cash, which the Group temporarily has no right to use.
3.4.3. Impairment of financial assets
As of the end of the reporting period, the management reviews whether there is
any indication for impairment of all financial assets, except for financial
assets measured at fair value through profit or loss. Financial assets are
impaired only when there is any objective evidence that as a result of one or
more events occurred after their initial recognition, the expected cash flows
have declined.
If any such evidence exists regarding assets measured at cost, the impairment
loss is determined as the difference between the carrying amount and the present
value of expected future cash flows discounted by the present market interest
rate for similar assets.
Impairment loss on loans granted and receivables carried at amortized cost is
measured as the difference between the asset's carrying amount and the present
value of the estimated future cash flows, discounted by the financial asset's
original effective interest rate. Impairment loss is immediately recognized in
profit or loss. It is recovered if a subsequent increase of the recoverable
amount could be objectively tied to the occurrence of an event after the date on
which the impairment loss was recognized.
3.4.4. Financial liabilities at amortized cost
After their initial recognition, the Group measures all financial liabilities at
amortized cost except for the financial liabilities, reported at their fair
value through profit or loss; financial liabilities, that arise when the
transfer of an asset does not meet the derecognition requirements; contracts for
finance guarantee, arrangements for granting credit with interest rate lower
than the market interest rate. These liabilities are presented in the Group's
statement of financial position as trade and other payables and payables on
loans.
Trade and other payables
Trade and other payables incur as a result from purchased goods or services.
Current liabilities are not amortized.
Interest bearing loans
Interest bearing loans are initially recognized at fair value, determined from
the cash proceeds less transaction costs. After initial recognition, interest
bearing loans are measured at amortized cost, as any difference between the
initial value and the value at maturity is recognized in profit or loss over the
loan period, using the effective interest rate method. If no transaction costs
have been incurred in negotiating an interest bearing loan, the loan is not
subject to amortisation. The same applies to bank overdrafts, where the borrower
is entitled to utilize or repay the borrowed funds many times within the
pre-determined overdraft limit.
Finance costs, including direct costs for obtaining the loan, are accounted for
on an accrual basis using the effective interest rate method, except for
transaction costs on bank overdrafts, which are recognized in profit or loss on
a straight line basis over the overdraft period.
3.4.4. Financial liabilities at amortized cost (continued)
The effective interest rate method is a method of calculating the amortized cost
of a financial asset or a financial liability and of allocating the interest
income or interest expense over the relevant period. The effective interest rate
is the rate that exactly discounts estimated future cash payments or proceeds
through the expected life of the financial instrument or, when appropriate, a
shorter period to the net carrying amount of the financial asset or financial
liability. When calculating the effective interest rate, the Group estimates
cash flows considering all contractual terms of the financial instrument, except
for anticipated future impairment losses. The calculation includes all fees,
transaction costs, premiums or discounts paid or received between parties to the
contract that are an integral part of the effective interest rate.
Interest bearing loans are classified as current when they are expected to be
settled within twelve months after the end of the reporting period.
3.4.5. Share capital and purchased own shares
The share capital of the Parent company is presented at historical cost as of
the date of its registration.
When at the end of the reporting period the Group - through Parent company or
subsidiary - has reacquired shares of the Parent company, their par value is
presented as decrease of share capital, and the difference below or above the
par value - in retained earnings, according to IAS 32 Financial Instruments:
Disclosure and Presentation.
3.5. Retirement benefits obligations
The Government of the Republic of Bulgaria is liable to provide pensions
according to defined retirement benefits schemes. Costs related to payment of
contributions under these schemes are recognized by the Group in profit or loss
in the period they occur.
In accordance with the Labour Code, the Group has an obligation to pay
retirement benefits to its employees, based on length of service, age and labour
category. In accordance with the requirements of IAS 19 Employee benefits and
its provisions, the Group recognizes the present amount of the benefits as a
liability. All actuarial gains and losses and past service cost is recognized
immediately in profit or loss.
3.6. Income tax
Income tax expense comprises current income tax and deferred tax.
The tax currently payable is based on the combined taxable profit (tax loss) for
the year of each company within the Group, as reported in their separate
corporate tax returns, applying the effective tax rate according to the tax
legislation as of the date of the financial statements. Deferred tax is the
income tax expected to be payable (recoverable) on taxable (deductible)
temporary differences. Temporary difference is the difference between the
carrying amount of an asset or liability in the statement of financial position
and its tax base. Deferred income taxes are calculated using the balance sheet
liability method. Deferred tax liabilities are recognized for all taxable
temporary differences, whereas deferred tax assets are recognized for deductible
temporary differences, only to the extent that it is probable that taxable
profit will be available against which the deductible temporary difference can
be utilized.
3.6. Income tax (continued)
Deferred tax assets and liabilities are calculated at the tax rates that are
expected to apply in the period when the liability is settled or the asset
realized, based on the information that the Company is provided for as of the
date of the issuance of the financial statements. Deferred tax is recognized as
an expense or income in profit or loss, except when they relate to items that
are recognized outside profit or loss, either in other comprehensive income or
directly in equity. In this case the tax is also recognized outside profit or
loss either in other comprehensive income or directly in equity.
Although income tax in Bulgaria is not calculated on a consolidation basis, the
Group has adopted the policy of accruing deferred tax assets (liabilities) on
all temporary differences, arising from the elimination of unrealized
intra-group income from sale of property, plant and equipment, which are treated
as temporary differences. These temporary differences are reversed by the
subsequent adjustments to depreciation expenses by the acquiring company or upon
disposal of the respective assets by the Group, when the profit on sale is
realized for the Group.
The carrying amount of deferred tax assets is reviewed by the Group at the end
of the reporting period and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow the benefit of all or
a part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are reported on a net basis when they are
subject to a unified tax regime.
In accordance with the tax legislation enforceable for 2010 and 2009, the tax
rates applied for the calculation of current tax liabilities of the Group is
10%, respectively. For the calculation of the deferred tax assets and
liabilities as of June 30, 2010, March 31, 2010 and December 31, 2009 the Group
has used a tax rate of 10%.
3.7. Revenue and expenses recognition
3.7.1. Revenue from sales of goods, services and other income
Revenues and expenses are accounted for on an accrual basis, regardless of cash
receipts and payments. They are reported in compliance with the matching
concept.
Revenue is recognized at the fair value of the consideration received or
receivable, less any discounts allowed and includes the gross economic benefits
received by or due to the Group. The amounts gathered on behalf of third parties
such as sales taxes, like value added tax, are excluded from the income. Revenue
generated from sale of fuel is reported on its gross amount with the excise due,
which is considered an integral part of the price of the goods.
Revenue from sales of goods is recognized when:
· The significant risks and rewards of ownership of the goods are transferred
to the buyer;
· The Group retains neither continuing managerial involvement nor effective
control over the goods sold;
· It is probable that the economic benefits associated with the transaction
will flow to the Group;
· The amount of revenue and costs incurred in respect of the transaction can
be reliably measured.
When the outcome of a transaction involving rendering of services can be
estimated reliably, revenue is recognised by reference to the stage of
completion of the transaction at the end of the reporting period. When the
outcome of a transaction cannot be estimated reliably revenue is recognized only
to the extent that the expenses recognized are recoverable.
Gain or loss from sales of property, plant and equipment, intangible assets and
materials is reported as other income or other expense.
3.7.2. Finance income and finance costs
Borrowing costs that may be directly attributed to the acquisition, construction
or production of an asset, when it takes significant time before it is ready for
use or sale, should be capitalized as part of the asset's cost. All other
finance income and finance costs are accrued through profit or loss measured at
amortized cost by using the effective interest rate method.
3.8. Deferred expenses and income
The Group has recognized in the statement of financial position as deferred
income and deferred expenses, income and expenses that are paid in the current,
but refer to future reporting periods - guarantees, insurances, subscriptions,
rents and other.
3.9. Lease
3.9.1. Finance lease
Finance lease is a lease agreement which substantially transfers all risks and
rewards incidental to the ownership of an asset.
Assets acquired under finance lease are recognized at the lower of their fair
value as of the date of acquisition or the present value of the minimum lease
payments. The corresponding liability to the lessor is included in the Group's
statements of financial position as obligations under finance leases.
Lease payments are divided in interest payments and payments on principal so
that a constant interest rate of the residual lease liability is obtained.
Finance lease causes depreciation expense for depreciable assets as well as
finance expense for each reporting period. The depreciation policy for
depreciable leased assets is consistent with the same for owned depreciable
assets.
For the purpose of presenting the financial instruments in categories, defined
in accordance with IAS 39 Financial Instruments: Recognition and measurement,
liabilities under finance lease are classified as financial liabilities at
amortized cost.
3.9.2. Operating lease
Costs incurred for assets leased under the operating lease contracts are
recognized in profit or loss over the terms of the contracts under the
straight-line method.
Revenue realized from assets under operating lease contracts is recognized in
profit or loss on a straight-line basis over the term of the lease contract.
Initial costs directly related to the signing of the lease contract are
capitalized in the cost of the asset and recognized as expenses on a
straight-line basis over the term of the lease contract.
3.10. Segment reporting
Operating segments data in these consolidated financial statements is presented
likewise the operating reports submitted to Group's management. Based on these
reports decisions are taken in respect of the resources to be allocated to the
segment and the results of its activity are evaluated.
4. Critical accounting estimates and key sources of estimation
uncertainty
In the application of the adopted accounting policy, management makes certain
estimates (other than the disclosed in note 2.8), which have significant effect
on these consolidated financial statements. Such estimates, by definition, may
differ from actual results. Due to their nature, they are subject to constant
review and update, and comprise the historical experience and other factors,
including expectation of future events, which the management believes are
reasonable under the present circumstances.
A critical accounting estimate, which includes significant risk of considerable
adjustments to the carrying amount of assets and liabilities in subsequent
reporting periods, is the test for impairment of goodwill, arising from business
combination. As of the end of the reporting period review of the carrying amount
of the goodwill was performed and as a result no necessity of impairment of
goodwill was determined (see note 17).
5. Segments reporting
The Group has identified the following operating segments based on the reports
presented to the Group's management which are used in the process of strategic
decision making:
· Wholesale of fuels - wholesale of oil products in Bulgaria in own storage
facilities of the Group; fuel bunkering abroad;
· Retail of fuels - retail of oil and other products in network of own
petrol stations; servicing of petrol stations and the belonging commercial
objects;
· Other activities - transportation of fuel with own and hired vehicles;
rental income and other activities.
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| June 30, 2010 | Wholesale | | Retail | | All | | Consolidated |
| | of fuels | | of | | other | | |
| | | | fuels | | segments | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Total segment | 476,854 | | 247,211 | | 1,907 | | 725,972 |
| revenue | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Inter-group revenue | 201,139 | | 15,067 | | 1,042 | | 217,248 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Revenue from | 275,715 | | 232,144 | | 865 | | 508,724 |
| external customers | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Adjusted EBITDA | 2,516 | | 12,487 | | 849 | | 15,852 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Depreciation/amortization | 1,284 | | 5,760 | | 418 | | 7,462 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Impairment | - | | - | | - | | - |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| June 30, 2009 | Wholesale | | Retail | | All | | Consolidated |
| | of fuels | | of | | other | | |
| | | | fuels | | segments | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Total segment | 442,442 | | 233,871 | | 1,858 | | 678,171 |
| revenue | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Inter-group revenue | 192,237 | | 7,399 | | 886 | | 200,522 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Revenue from | 250,205 | | 226,472 | | 972 | | 477,649 |
| external customers | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Adjusted EBITDA | (928) | | 13,986 | | 1,141 | | 14,199 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| | | | | | | | |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Depreciation/amortization | 1,942 | | 6,404 | | 785 | | 9,131 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
| Impairment | 2 | | - | | - | | 2 |
+---------------------------+-----------+-+---------+-+----------+-+--------------+
5. Segments reporting (continued)
The policies for recognition of intra-group sales and sales to external clients
for the purposes of the reporting by segments are not differing from these
applied by the Group for revenue recognition in the consolidated statement of
comprehensive income.
The Management of the Group evaluates the results and assesses the performance
of the segments on the basis of the adjusted EBITDA. In the calculation of the
adjusted EBITDA is not taken into account the effect of impairment of assets.
The reconciliation of the adjusted EBITDA and the loss before tax is presented
below:
+-------------------------------------------+----------+----------+----------+
| | June | | June |
| | 30, 2010 | | 30, 2009 |
| | BGN'000 | | BGN'000 |
+-------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------+----------+----------+----------+
| Adjusted EBITDA reporting segments | 15,003 | | 13,058 |
+-------------------------------------------+----------+----------+----------+
| Adjusted EBITDA all other segments | 849 | | 1,141 |
+-------------------------------------------+----------+----------+----------+
| Depreciation/amortization | (7,462) | | (9,131) |
+-------------------------------------------+----------+----------+----------+
| Impairment | - | | (2) |
+-------------------------------------------+----------+----------+----------+
| Finance expense, net | (17,809) | | (9,757) |
+-------------------------------------------+----------+----------+----------+
| Share of profit of associates | 130 | | 335 |
+-------------------------------------------+----------+----------+----------+
| | | | |
+-------------------------------------------+----------+----------+----------+
| Loss before tax | (9,289) | | (4,356) |
+-------------------------------------------+----------+----------+----------+
6. Revenue
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Sale of goods | 497,241 | | 464,213 | | 263,273 | | 262,893 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Sale of services | 9,227 | | 6,243 | | 4,574 | | 3,598 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | 506,468 | | 470,456 | | 267,847 | | 266,491 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
7. Other income
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Surplus of assets | 759 | | 276 | | 256 | | 212 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Income from penalties | 486 | | 286 | | 217 | | 176 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Gain from sales of | 284 | | 5,752 | | 154 | | 4,487 |
| property, plant and | | | | | | | |
| equipment, incl. | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Income from sales | 931 | | 7,048 | | 769 | | 5,500 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Carrying amount | (647) | | (1,296) | | (615) | | (1,013) |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Insurance claims | 142 | | 14 | | 77 | | 4 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Gain from liquidation of | - | | 5 | | - | | 5 |
| property, plant and | | | | | | | |
| equipment and materials, | | | | | | | |
| incl. | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Income from sales | - | | 8 | | - | | 8 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Carrying amount | - | | (3) | | - | | (3) |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Other | 585 | | 860 | | 427 | | 685 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | 2,256 | | 7,193 | | 1,131 | | 5,569 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
8. Materials and consumables
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Fuels and lubricants | 2,001 | | 1,511 | | 793 | | 682 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Electricity and heating | 1,517 | | 1,444 | | 636 | | 581 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Office consumables | 290 | | 375 | | 174 | | 169 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Spare parts | 245 | | 458 | | 121 | | 355 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Advertising materials | 171 | | 58 | | 107 | | 27 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Working clothes | 94 | | 57 | | 76 | | 34 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Water | 64 | | 54 | | 34 | | 35 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Other | 273 | | 128 | | 208 | | 61 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | 4,655 | | 4,085 | | 2,149 | | 1,944 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
9. Hired services
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Commissions | 2,711 | | 4,974 | | 1,402 | | 3,005 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Rents | 2,261 | | 2,603 | | 1,151 | | 1,639 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Transport | 1,418 | | 1,102 | | 871 | | 511 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Security | 1,106 | | 1,172 | | 590 | | 662 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Consulting and training | 1,052 | | 1,224 | | 461 | | 688 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Software licenses | 998 | | 736 | | 621 | | 361 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Holding fee | 978 | | 978 | | 489 | | 488 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Advertising | 953 | | 831 | | 803 | | 500 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Maintenance and repairs | 790 | | 1,154 | | 340 | | 717 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Insurances | 771 | | 469 | | 478 | | 230 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Communications | 722 | | 834 | | 326 | | 463 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| State and municipal fees | 596 | | 377 | | 123 | | 284 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Cash collection expense | 589 | | 546 | | 341 | | 279 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Other | 374 | | 722 | | 203 | | 442 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | 15,319 | | 17,722 | | 8,199 | | 10,269 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
10. Employee benefits expenses
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Wages and salaries | 8,997 | | 9,318 | | 4,610 | | 4,575 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Social security | 1,718 | | 1,921 | | 862 | | 933 |
| contributions and | | | | | | | |
| benefits | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | 10,715 | | 11,239 | | 5,472 | | 5,508 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
11. Other expenses
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Shortages and | 847 | | 756 | | 491 | | 458 |
| written-off assets | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Taxes and charges | 797 | | 823 | | 646 | | 282 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Penalties and | 396 | | 1,060 | | 121 | | 933 |
| indemnities | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Business trips | 190 | | 279 | | 96 | | 146 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Loss on liquidation of | 138 | | - | | (85) | | - |
| non-current assets, | | | | | | | |
| including: | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Income from liquidation | (103) | | - | | (103) | | - |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Carrying amount | 241 | | - | | 18 | | - |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Entertainment expenses | 96 | | 227 | | 54 | | 171 |
| and sponsorship | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Scrapped assets | 83 | | 343 | | 21 | | 343 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Impairment of assets | - | | 2 | | - | | - |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Other | 182 | | 111 | | 101 | | 34 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | 2,729 | | 3,601 | | 1,445 | | 2,367 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
12. Finance income and costs
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Finance income | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest income, | 2,996 | | 1,784 | | 1,611 | | 769 |
| including: | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest income on loans | 2,571 | | 1,367 | | 1,371 | | 591 |
| granted | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest income on trade | 397 | | 306 | | 219 | | 80 |
| and other receivables | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Other interest income | 28 | | 111 | | 21 | | 98 |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Other finance income | 1 | | - | | 1 | | - |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | 2,997 | | 1,784 | | 1,612 | | 769 |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Finance costs | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest expenses, | (9,592) | | (9,673) | | (4,849) | | (4,855) |
| including: | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest expenses on | (8,982) | | (9,042) | | (4,530) | | (4,487) |
| debenture loans | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest expenses on | (379) | | (311) | | (197) | | (184) |
| bank loans | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest expenses on | (94) | | (208) | | (45) | | (88) |
| obligations under | | | | | | | |
| finance lease | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Interest expenses on | (117) | | - | | (73) | | - |
| trade loans | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Other interest expenses | (20) | | (112) | | (4) | | (96) |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Loss from dealings with | (121) | | (1,146) | | (121) | | (2,330) |
| derivatives, including: | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Loss on transactions | (121) | | (1,021) | | (121) | | (2,205) |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Revaluations at fair | - | | (125) | | - | | (125) |
| value | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Foreign exchange rate | (9,894) | | (30) | | (6,591) | | 27 |
| losses, net | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Bank fees, commissions | (1,199) | | (692) | | (625) | | (456) |
| and other costs | | | | | | | |
| financial expenses | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| | (20,806) | | (11,541) | | (12,186) | | (7,614) |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
| Finance costs, net | (17,809) | | (9,757) | | (10,574) | | (6,845) |
+--------------------------+----------+----------+----------+----------+----------+----------+---------+
13. Taxation
Tax expense recognized in profit or loss comprises the amount of current and
deferred income tax in accordance with the requirements of IAS 12 Income taxes.
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Current tax expense | 2,187 | | 1,067 | | 542 | | 780 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Change in deferred | (2,778) | | (1,170) | | (1,099) | | (356) |
| taxes, incl.: | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Temporary differences | (748) | | 408 | | 190 | | 236 |
| recognized during the | | | | | | | |
| year | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Temporary differences | (2,030) | | (1,578) | | (1,289) | | (592) |
| originated during the | | | | | | | |
| year | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
| Total tax benefit | (591) | | (103) | | (557) | | 424 |
+--------------------------+----------+----------+----------+----------+---------+----------+---------+
The reconciliation between accounting loss and tax benefit is presented in the
table below:
+--------------------------------------------+---------+-+----------+
| | Six | | Six |
| | months | | months |
| | ended | | ended |
| | June | | June |
| | 30, | | 30, |
| | 2010 | | 2009 |
| | BGN'000 | | BGN'000 |
+--------------------------------------------+---------+-+----------+
| | | | |
+--------------------------------------------+---------+-+----------+
| Accounting loss | (9,289) | | (4,356) |
+--------------------------------------------+---------+-+----------+
| Applicable tax rate | 10% | | 10% |
+--------------------------------------------+---------+-+----------+
| Tax expense (benefit) at the applicable | (929) | | (436) |
| tax rate | | | |
+--------------------------------------------+---------+-+----------+
| | | | |
+--------------------------------------------+---------+-+----------+
| Aggregate tax effect from permanent | (65) | | 22,283 |
| differences | | | |
+--------------------------------------------+---------+-+----------+
| Tax effect from unrecognized during the | 1 | | 50 |
| current year temporary difference | | | |
| originated during the current period | | | |
+--------------------------------------------+---------+-+----------+
| Recognized tax assets originated in prior | | | (11) |
| periods | | | |
+--------------------------------------------+---------+-+----------+
| Tax effect from consolidation adjustments | 402 | | (21,989) |
+--------------------------------------------+---------+-+----------+
| | | | |
+--------------------------------------------+---------+-+----------+
| Tax expense (benefit) | (591) | | (103) |
+--------------------------------------------+---------+-+----------+
| | | | |
+--------------------------------------------+---------+-+----------+
The deferred tax asset (liability) presented in the consolidated statement of
financial position arises as a result of income tax charges on deductible
temporary differences, the effect of which is as follows:
13. Taxation (continued)
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | June 30, 2010 | | March 31, 2010 | | December 31, 2009 |
+-----------------+---------------------------------+----------+---------------------------------+----------+---------------------------------+
| | Temporary | | Tax | | Temporary | | Tax | | Temporary | | Tax |
| | difference | | effect | | difference | | effect | | difference | | effect |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Balance at the | | | | | | | | | | | |
| beginning of | | | | | | | | | | | |
| the period | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Property, plant | (22,594) | | (2,261) | | (22,594) | | (2,261) | | (22,603) | | (2,260) |
| and equipment | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Tax loss carry | 1,231 | | 123 | | 1,231 | | 123 | | 2,718 | | 272 |
| forward | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Unused paid | 2,087 | | 210 | | 2,087 | | 210 | | 2,459 | | 247 |
| leave and | | | | | | | | | | | |
| retirement | | | | | | | | | | | |
| compensations | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Subsequent | - | | - | | - | | - | | 206 | | 20 |
| measurement of | | | | | | | | | | | |
| assets | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Excess of | 30,532 | | 3,053 | | 30,532 | | 3,053 | | 815 | | 81 |
| interest | | | | | | | | | | | |
| payments | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Investments in | (16,869) | | (1,687) | | (16,869) | | (1,687) | | (16,869) | | (1,687) |
| associates | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Impairment of | 4,107 | | 411 | | 4,107 | | 411 | | 6,793 | | 680 |
| assets | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Other | 1,052 | | 106 | | 1,052 | | 106 | | 3,501 | | 350 |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | (454) | | (45) | | (454) | | (45) | | (22,980) | | (2,297) |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Originated | | | | | | | | | | | |
| during the | | | | | | | | | | | |
| period | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Property, plant | 1,769 | | 178 | | 174 | | 18 | | (138) | | (15) |
| and equipment | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Tax loss carry | 4,696 | | 469 | | 332 | | 33 | | 494 | | 49 |
| forward | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Unused paid | 287 | | 28 | | 69 | | 7 | | 1,062 | | 107 |
| leave and | | | | | | | | | | | |
| retirement | | | | | | | | | | | |
| compensations | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Excess of | 13,549 | | 1,355 | | 6,819 | | 682 | | 29,717 | | 2,972 |
| interest | | | | | | | | | | | |
| payments | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Impairment of | - | | - | | - | | - | | 9 | | 1 |
| assets | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Other | 4 | | - | | 15 | | 1 | | 56 | | 6 |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | 20,305 | | 2,030 | | 7,409 | | 741 | | 31,200 | | 3,120 |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Recognized | | | | | | | | | | | |
| during the | | | | | | | | | | | |
| period | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Property, plant | 9,152 | | 915 | | 10,580 | | 1,058 | | 735 | | 73 |
| and equipment | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Tax loss carry | - | | - | | - | | - | | (1,981) | | (198) |
| forward | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Unused paid | (574) | | (58) | | (276) | | (28) | | (1,434) | | (144) |
| leave and | | | | | | | | | | | |
| retirement | | | | | | | | | | | |
| compensations | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Subsequent | - | | - | | - | | - | | (206) | | (20) |
| measurement of | | | | | | | | | | | |
| assets | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Impairment of | (37) | | (4) | | - | | - | | (2,695) | | (270) |
| assets | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Other | (1,058) | | (105) | | (918) | | (92) | | (2,505) | | (250) |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | 7,483 | | 748 | | 9,386 | | 938 | | (8,086) | | (809) |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Adjustments | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Property, plant | - | | - | | - | | - | | (588) | | (59) |
| and equipment | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | - | | - | | - | | - | | (588) | | (59) |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Balance at the | | | | | | | | | | | |
| end of the | | | | | | | | | | | |
| period | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Property, plant | (11,673) | | (1,168) | | (11,840) | | (1,185) | | (22,594) | | (2,261) |
| and equipment | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Tax loss carry | 5,927 | | 592 | | 1,563 | | 156 | | 1,231 | | 123 |
| forward | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Unused paid | 1,800 | | 180 | | 1,880 | | 189 | | 2,087 | | 210 |
| leave and | | | | | | | | | | | |
| retirement | | | | | | | | | | | |
| compensations | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Excess of | 44,081 | | 4,408 | | 37,351 | | 3,735 | | 30,532 | | 3,053 |
| interest | | | | | | | | | | | |
| payments | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Investments in | (16,869) | | (1,687) | | (16,869) | | (1,687) | | (16,869) | | (1,687) |
| associates | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Impairment of | 4,070 | | 407 | | 4,107 | | 411 | | 4,107 | | 411 |
| assets | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| Other | (2) | | 1 | | 149 | | 15 | | 1,052 | | 106 |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | | | | | | | | | | | |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
| | 27,334 | | 2,733 | | 16,341 | | 1,634 | | (454) | | (45) |
+-----------------+------------+----------+---------+----------+------------+----------+---------+----------+------------+----------+---------+
14. Property, plant and equipment and intangible assets
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | Land | | Buildings | | Plant | | Vehicles | | Other | | Assets | | Intangible | | Total |
| | | | | | and | | | | assets | | under | | assets | | |
| | | | | | equipment | | | | | | construction | | | | |
| | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Cost | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | 37,901 | | 46,503 | | 135,267 | | 25,084 | | 11,545 | | 9,613 | | 1,803 | | 267,716 |
| | | | | | | | | | | | | | | | |
| January 1, | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Additions | 38 | | 652 | | 1,369 | | - | | 428 | | 5,184 | | 4 | | 7,675 |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Disposals | - | | (78) | | (458) | | (111) | | (94) | | - | | (8) | | (749) |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Transfers | - | | 1,225 | | 3,612 | | - | | 525 | | (5,362) | | - | | - |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | 37,939 | | 48,302 | | 139,790 | | 24,973 | | 12,404 | | 9,435 | | 1,799 | | 274,642 |
| | | | | | | | | | | | | | | | |
| June 30, | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Additions | 38 | | 10 | | 190 | | 158 | | 210 | | 8,777 | | 680 | | 10,063 |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Disposals | (149) | | (178) | | (978) | | (450) | | (172) | | (145) | | - | | (2,072) |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Transfers | - | | 1,592 | | 5,758 | | 71 | | 935 | | (8,286) | | (70) | | - |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Transfers | 1,027 | | 908 | | 2,601 | | - | | 151 | | - | | 6 | | 4,693 |
| from | | | | | | | | | | | | | | | |
| assets | | | | | | | | | | | | | | | |
| held for | | | | | | | | | | | | | | | |
| sale | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | 38,855 | | 50,634 | | 147,361 | | 24,752 | | 13,528 | | 9,781 | | 2,415 | | 287,326 |
| December | | | | | | | | | | | | | | | |
| 31, 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Additions | - | | - | | 313 | | 11 | | 165 | | 3,592 | | 1 | | 4,082 |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Disposals | (28) | | (64) | | (1,351) | | (1,974) | | (273) | | - | | - | | (3,690) |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Transfers | - | | 1,245 | | 4,490 | | - | | 502 | | (6,267) | | 30 | | - |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | 38,827 | | 51,815 | | 150,813 | | 22,789 | | 13,922 | | 7,106 | | 2,446 | | 287,718 |
| | | | | | | | | | | | | | | | |
| June 30, | | | | | | | | | | | | | | | |
| 2010 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Accumulated | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Depreciation/ | | | | | | | | | | | | | | | |
| Amortization | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | - | | 18,008 | | 57,449 | | 15,888 | | 7,433 | | - | | 1,600 | | 100,378 |
| | | | | | | | | | | | | | | | |
| January 1, | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Charged | - | | 719 | | 6,275 | | 1,419 | | 668 | | - | | 50 | | 9,131 |
| for the | | | | | | | | | | | | | | | |
| period | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Disposals | - | | (15) | | (335) | | (1) | | (40) | | - | | (5) | | (396) |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | - | | 18,712 | | 63,389 | | 17,306 | | 8,061 | | - | | 1,645 | | 109,113 |
| | | | | | | | | | | | | | | | |
| June 30, | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Charged | - | | 751 | | 6,259 | | 1,305 | | 713 | | - | | 52 | | 9,080 |
| for the | | | | | | | | | | | | | | | |
| period | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Disposals | - | | (111) | | (546) | | (514) | | (177) | | - | | 2 | | (1,346) |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Transfers | - | | - | | - | | 19 | | - | | - | | (19) | | - |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Transfers | - | | 536 | | 1,613 | | - | | 151 | | - | | 6 | | 2,306 |
| from | | | | | | | | | | | | | | | |
| assets | | | | | | | | | | | | | | | |
| held for | | | | | | | | | | | | | | | |
| sale | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | - | | 19,888 | | 70,715 | | 18,116 | | 8,748 | | - | | 1,686 | | 119,153 |
| December | | | | | | | | | | | | | | | |
| 31, 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Charged | - | | 726 | | 4,942 | | 1,167 | | 550 | | - | | 77 | | 7,462 |
| for the | | | | | | | | | | | | | | | |
| period | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Disposals | - | | (17) | | (1,086) | | (1,955) | | (90) | | - | | (1) | | (3,149) |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Balance at | - | | 20,597 | | 74,571 | | 17,328 | | 9,208 | | - | | 1,762 | | 123,466 |
| | | | | | | | | | | | | | | | |
| June 30, | | | | | | | | | | | | | | | |
| 2010 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Carrying | 37,901 | | 28,495 | | 77,818 | | 9,196 | | 4,112 | | 9,613 | | 203 | | 167,338 |
| amount at | | | | | | | | | | | | | | | |
| January 1, | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Carrying | 37,939 | | 29,590 | | 76,401 | | 7,667 | | 4,343 | | 9,435 | | 154 | | 165,529 |
| amount at | | | | | | | | | | | | | | | |
| June 30, | | | | | | | | | | | | | | | |
| 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Carrying | 38,855 | | 30,746 | | 76,646 | | 6,636 | | 4,780 | | 9,781 | | 729 | | 168,173 |
| amount at | | | | | | | | | | | | | | | |
| December | | | | | | | | | | | | | | | |
| 31, 2009 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
| Carrying | 38,827 | | 31,218 | | 76,242 | | 5,461 | | 4,714 | | 7,106 | | 684 | | 164,252 |
| amount at | | | | | | | | | | | | | | | |
| June 30, | | | | | | | | | | | | | | | |
| 2010 | | | | | | | | | | | | | | | |
+---------------+---------+----------+-----------+----------+-----------+----------+----------+----------+---------+----------+--------------+----------+------------+----------+---------+
14. Property, plant and equipment and intangible assets (continued)
As of June 30, 2010 property, plant and equipment with carrying amount of BGN
10,557 thousand serves as collaterals under bank loans extended to the Group,
the Controlling Company and other related parties (see also note 32.2).
15. Investments in associates
As of June 30, 2010, December 31, 2009 and June 30, 2009 the group reports as
investment in associates the ownership of 36.92% from the equity of Eurocapital
Bulgaria AD.
+---------------------------------+---------+----------+----------+----------+---------+
| | June | | December | | June |
| | 30, | | 31, | | 30, |
| | 2010 | | 2009 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+---------+----------+----------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+----------+----------+---------+
| Investment at the beginning of | 15,299 | | 15,776 | | 15,776 |
| the period | | | | | |
+---------------------------------+---------+----------+----------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+----------+----------+---------+
| Group's share in the profit of | 130 | | 289 | | 335 |
| the associate | | | | | |
+---------------------------------+---------+----------+----------+----------+---------+
| Share of distributed dividends | (260) | | (766) | | (766) |
| from associate | | | | | |
+---------------------------------+---------+----------+----------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+----------+----------+---------+
| Investment at the end of the | 15,169 | | 15,299 | | 15,345 |
| period | | | | | |
+---------------------------------+---------+----------+----------+----------+---------+
The total amount of assets, liabilities, income and financial results of
associates as of June 30, 2010, December 31, 2009 and June 30, 2009 are as
follows:
+---------------------------------+----------+----------+----------+----------+----------+
| | June | | December | | June |
| | 30, | | 31, | | 30, |
| | 2010 | | 2009 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+
| Assets | 92,797 | | 92,829 | | 96,161 |
+---------------------------------+----------+----------+----------+----------+----------+
| Liabilities | (30,960) | | (30,641) | | (33,848) |
+---------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+
| Net assets | 61,837 | | 62,188 | | 62,313 |
+---------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+
| Income | 1,157 | | 5,779 | | 4,740 |
+---------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+
| Profit for the period | 353 | | 782 | | 908 |
+---------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+
| Group's share in the profit of | 130 | | 289 | | 335 |
| the associate | | | | | |
+---------------------------------+----------+----------+----------+----------+----------+
16. Investments in other companies
As of June 30, 2010, March 31, 2010 and December 31, 2009 the Group owns 6.92%
of the equity of Capital 3000 AD. The investment in Capital 3000 AD has been
fully impaired in prior reporting periods.
17. Goodwill
Goodwill with carrying amount of BNG 18,297 thousand as of June 30, 2010, March
31, 2010 and December 31, 2009 has arisen as a result of the acquisition of the
subsidiary Naftex Petrol EOOD.
A review for impairment of the carrying amount of goodwill originated as a
result of the acquisition of Naftex Petrol EOOD is performed as of June 30, 2010
and the method of discounted net cash flows is used. The method is based on the
cash flows forecasts prepared by the subsidiary's management for four-year
period after June 30, 2010. The assumption that the net cash flows after the
last forecast period will be constant is used. The used discount rate of 12% is
calculated as subsidiary's weighted average cost of capital. The result of the
applied method shows that the amount of the investment in the subsidiary exceeds
the total amount of net assets and goodwill as of June 30, 2010 and therefore no
impairment loss on goodwill is recognized.
18. Loans granted
+---------------------------------+---------+----------+---------+----------+----------+
| | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Non-current receivables | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Loans to related parties | 63,016 | | 21,034 | | 21,034 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 63,016 | | 21,034 | | 21,034 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Current receivables | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Loans and deposits to related | 7,826 | | 42,287 | | 35,910 |
| parties | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Loans to third parties | 51 | | 51 | | 51 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 7,877 | | 42,338 | | 35,961 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 70,893 | | 63,372 | | 56,995 |
+---------------------------------+---------+----------+---------+----------+----------+
Receivables on loans granted to related parties are disclosed in note 31.
19. Inventories
+---------------------------------+---------+----------+---------+----------+----------+
| | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Goods, including: | 77,820 | | 64,027 | | 53,137 |
+---------------------------------+---------+----------+---------+----------+----------+
| Fuels | 65,109 | | 51,366 | | 45,358 |
+---------------------------------+---------+----------+---------+----------+----------+
| Lubricants and other goods | 12,711 | | 12,661 | | 7,779 |
+---------------------------------+---------+----------+---------+----------+----------+
| Materials | 2,421 | | 2,673 | | 2,765 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 80,241 | | 66,700 | | 55,902 |
+---------------------------------+---------+----------+---------+----------+----------+
As of June 30, 2010 available fuels are pledged as collateral under utilized by
the Group bank loans (see also note 24).
20. Trade and other receivables
+---------------------------------+----------------+----------+-------------+----------+-----------+
| | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| | | | | | |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Receivables from customers, | 51,264 | | 58,706 | | 61,342 |
| incl. | | | | | |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Initial cost | 53,368 | | 60,810 | | 63,446 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Allowance for doubtful debts | (2,104) | | (2,104) | | (2,104) |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Receivables from related | 8,143 | | 6,128 | | 5,742 |
| parties | | | | | |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Litigations and writs | 2,884 | | 2,916 | | 2,904 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Initial cost | 2,901 | | 2,933 | | 2,921 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Allowance for doubtful debts | (17) | | (17) | | (17) |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Guarantees for tender | 2,255 | | 3,567 | | 3,844 |
| participation | | | | | |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Advances granted | 1,016 | | 794 | | 994 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Refundable taxes, incl. | 201 | | 113 | | 281 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| VAT | 124 | | 108 | | 277 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Other taxes | 77 | | 5 | | 4 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| Other | 5,290 | | 2,709 | | 3,139 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| | | | | | |
+---------------------------------+----------------+----------+-------------+----------+-----------+
| | 71,053 | | 74,933 | | 78,246 |
+---------------------------------+----------------+----------+-------------+----------+-----------+
Group's management believes that the carrying amount of trade and other
receivables approximates their fair value as of June 30, 2010, March 31, 2010
and December 31, 2009.
Receivables from related parties are disclosed in note 31.
As of June 30, 2010 a company within the Group has receivables at the amount of
BGN 34,750 thousand, which are provided as collateral under utilized bank loans
(see also note 24).
21. Cash
+---------------------------------+-----------+----------+---------+----------+------------+
| | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+-----------+----------+---------+----------+------------+
| | | | | | |
+---------------------------------+-----------+----------+---------+----------+------------+
| Cash at banks | 2,722 | | 9,387 | | 13,890 |
+---------------------------------+-----------+----------+---------+----------+------------+
| Cash in transit | 2,414 | | 2,262 | | 4,085 |
+---------------------------------+-----------+----------+---------+----------+------------+
| Cash on hand | 123 | | 112 | | 143 |
+---------------------------------+-----------+----------+---------+----------+------------+
| | | | | | |
+---------------------------------+-----------+----------+---------+----------+------------+
| Cash as of statement of cash | 5,259 | | 11,761 | | 18,118 |
| flows | | | | | |
+---------------------------------+-----------+----------+---------+----------+------------+
| | | | | | |
+---------------------------------+-----------+----------+---------+----------+------------+
| Restricted cash | 5 | | 4 | | 431 |
+---------------------------------+-----------+----------+---------+----------+------------+
| | | | | | |
+---------------------------------+-----------+----------+---------+----------+------------+
| Cash as of statement of | 5,264 | | 11,765 | | 18,549 |
| financial position | | | | | |
+---------------------------------+-----------+----------+---------+----------+------------+
Cash in transit is cash collected from the petrol stations as of the end of the
reporting period which is to be received on the Group's accounts in the
beginning of the next reporting period.
As of June 30, 2010 cash at banks to the amount of BGN 2,490 thousand serves as
collaterals under bank loans extended to the Group (see also note 32.2).
22. Share capital
The share capital of the Group is presented at its nominal value, according to
the court decision for registration. In 2009 the Group, through one of its
subsidiary, performed block transactions on the Bulgarian Stock Exchange and
acquired and sold own shares. The acquired own shares are not subject to legal
cancelation. As a result of these transactions the Group realized net profit
amounting to BGN 585 thousand in 2009, which is recorded in accordance with IAS
32 Financial Instruments: Disclosure and Presentation directly in equity against
retained earnings.
As of June 30, 2010, March 31, 2010 and December 31, 2009 the shareholders of
the Parent company are as follows:
+---------------------------------+---------+----------+---------+----------+----------+
| Shareholders | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | % of | | % of | | % of |
| | share | | share | | share |
| | capital | | capital | | capital |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Petrol Holding AD | 55.47% | | 55.47% | | 55.47% |
+---------------------------------+---------+----------+---------+----------+----------+
| Naftex Petrol EOOD | 41.82% | | 41.82% | | 41.82% |
+---------------------------------+---------+----------+---------+----------+----------+
| Ministry of Economics | 0.70% | | 0.70% | | 0.70% |
+---------------------------------+---------+----------+---------+----------+----------+
| Other minority shareholders | 2.01% | | 2.01% | | 2.01% |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 100% | | 100% | | 100% |
+---------------------------------+---------+----------+---------+----------+----------+
23. Reserve from adoption of IFRS
The reserve from adoption of IFRS as of June 30, 2010, March 31, 2010 and
December 31, 2009 amounts to BGN 9,276 thousand, BGN 9,364 thousand and BGN
20,657 thousand, respectively, and has been formed as a result of a revaluation
of property, plant and equipment and intangible assets, carried out in the
period 1998 - 2001, as well as of revaluation as of December 31, 2002, in
relation to the first time adoption of IFRS in the preparation of Parent
company's separate financial statements.
24. Borrowings
+---------------------------------+---------+----------+---------+----------+----------+
| | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Non-current liabilities | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Loans from financial | 3,778 | | 3,689 | | 3,822 |
| institutions | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Debenture loans | 192,076 | | 191,840 | | 191,683 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 195,854 | | 195,529 | | 195,505 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Current liabilities | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Loans from financial | 10,345 | | 10,545 | | 10,895 |
| institutions | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Debenture loans | 11,171 | | 7,136 | | 3,100 |
+---------------------------------+---------+----------+---------+----------+----------+
| Trade loans from related | 3,877 | | 1,295 | | 1,295 |
| parties | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 25,393 | | 18,976 | | 15,290 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 221,247 | | 214,505 | | 210,795 |
+---------------------------------+---------+----------+---------+----------+----------+
24. Borrowings (continued)
The average effective interest rate on loans from financial institutions is
within the range of 3.5% to 7%. Goods, cash in current accounts, receivables and
promissory notes are pledged as collateral for the loans.
In October 2006 the Parent company issued 2,000 registered, transferable bonds
with fixed annual interest rate of 8.375% and issue value - 99.507% of the face
value, which is determined at EUR 50,000 per one bond. The term of the bond
issue is 5 years and the maturity date is in October 2011. The principal is due
in one payment at the maturity date. The issue is secured by Group's receivables
under loans, granted to related parties and a corporate guarantee, issued by a
subsidiary. The transaction costs for the bond issue amount to BGN 3,049
thousand. Interest is paid once a year. The annual effective interest rate is
8.955%. The purpose of the issue is working capital financing, financing of
investment projects and restructuring of the Company's debt.
The liabilities to related parties are disclosed in note 31.
25. Obligations under finance lease
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | Minimum lease payments | | Present value of minimum lease |
| | | | payments |
+----------------------+------------------------------------------------------+----------+------------------------------------------------------+
| | June | | March | | December | | June | | March | | December |
| | 30, 2010 | | 31, 2010 | | 31, 2009 | | 30, 2010 | | 31, 2010 | | |
| | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 | | 31, 2009 |
| | | | | | | | | | | | BGN'000 |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| Amounts payable | | | | | | | | | | | |
| under finance leases | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| Within one year | 1,771 | | 1,861 | | 1,916 | | 1,633 | | 1,707 | | 1,746 |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| From one to two | 1,410 | | 1,584 | | 1,669 | | 1,328 | | 1,489 | | 1,560 |
| years | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| From three to five | 1,867 | | 2,114 | | 2,488 | | 1,788 | | 2,019 | | 2,375 |
| years | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| Less: Interest | | | | | | | | | | | |
| payable | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| Within one year | (138) | | (154) | | (170) | | | | - | | - |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| From one to two | (82) | | (95) | | (109) | | | | - | | - |
| years | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| From three to five | (79) | | (95) | | (113) | | | | - | | - |
| years | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| Present value of | 4,749 | | 5,215 | | 5,681 | | 4,749 | | 5,215 | | 5,681 |
| finance lease | | | | | | | | | | | |
| obligations | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| Less: Present value | | | | | | | (1,633) | | (1,707) | | (1,746) |
| of finance lease | | | | | | | | | | | |
| obligations with | | | | | | | | | | | |
| maturity less than 1 | | | | | | | | | | | |
| year | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
| Present value of | | | | | | | 3,116 | | 3,508 | | 3,935 |
| finance lease | | | | | | | | | | | |
| obligations with | | | | | | | | | | | |
| maturity over 1 year | | | | | | | | | | | |
+----------------------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+----------+
Assets acquired by the Group under finance leases comprise of vehicles. The
lease term of the contracts is between 3 to 6 years.
Management believes that the fair value of the obligations under finance leases
does not differ significantly from their carrying amount.
Liabilities under finance lease agreements are secured by promissory notes
issued by the Group in favour of the lessors and expire at the termination date
of the respective agreements.
26. Retirement benefits obligations
The Group accrues liabilities for retirement benefits at the amount of BGN 240
thousand (BGN 35 thousand as short-term portion and BGN 205 thousand as
long-term portion). The amount of the liabilities is based on an actuary
valuation, taking into consideration assumptions for mortality, disability,
employment turnover, salaries' growth, etc. The present value of the liability
is calculated by applying a discount factor of 4%.
27. Trade and other payables
+---------------------------------+---------+----------+---------+----------+----------+
| | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Payables to suppliers | 96,996 | | 87,665 | | 78,070 |
+---------------------------------+---------+----------+---------+----------+----------+
| Tax payables, incl.: | 36,088 | | 48,093 | | 39,461 |
+---------------------------------+---------+----------+---------+----------+----------+
| VAT | 9,351 | | 14,292 | | 13,036 |
+---------------------------------+---------+----------+---------+----------+----------+
| Excise duties and other taxes | 26,737 | | 33,801 | | 26,425 |
+---------------------------------+---------+----------+---------+----------+----------+
| Related party payables | 43,484 | | 33,907 | | 41,743 |
+---------------------------------+---------+----------+---------+----------+----------+
| Payables to personnel and | 3,055 | | 3,126 | | 4,186 |
| social security funds | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Advances received | 2,534 | | 632 | | 2,032 |
+---------------------------------+---------+----------+---------+----------+----------+
| Deferred income | 137 | | 168 | | 209 |
+---------------------------------+---------+----------+---------+----------+----------+
| Other | 3,778 | | 4,159 | | 5,994 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | 186,072 | | 177,750 | | 171,695 |
+---------------------------------+---------+----------+---------+----------+----------+
Related party payables are disclosed in note 31.
The Group accrues liabilities for unused annual paid leave of employees in
compliance with IAS 19 Employee Benefits. The movement of these liabilities for
the reported periods is as follows:
+---------------------------------+---------+----------+---------+----------+----------+
| | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
| | BGN'000 | | BGN'000 | | BGN'000 |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Balance at the beginning of the | 1,568 | | 1,568 | | 1,798 |
| period | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Accrued during the period | 287 | | 69 | | 906 |
+---------------------------------+---------+----------+---------+----------+----------+
| Utilized during the period | (574) | | (276) | | (1,135) |
+---------------------------------+---------+----------+---------+----------+----------+
| Other changes | - | | - | | (1) |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Balance at the end of the | 1,281 | | 1,361 | | 1,568 |
| period, including: | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Paid leave | 1,048 | | 1,118 | | 1,297 |
+---------------------------------+---------+----------+---------+----------+----------+
| Social security contributions | 233 | | 243 | | 271 |
+---------------------------------+---------+----------+---------+----------+----------+
The balance at the end of the period is presented in the statement of financial
position together with the current liabilities for employee benefits.
The management believes that the carrying amount of the current liabilities,
presented in the consolidated statement of financial position, approximates
their fair value.
28. Current income tax payable
Current income tax includes corporate income tax accruals for the current period
and prior periods up to the amount, which is not settled at the end of the
reporting period.
+---------------------------------+---------+----------+---------+----------+----------+
| | June | | March | | December |
| | 30, | | 31, | | 31, 2009 |
| | 2010 | | 2010 | | BGN'000 |
| | BGN'000 | | BGN'000 | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Income tax payable as of | 698 | | 698 | | 1,193 |
| January 1 | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Accrued corporate income tax | 2,187 | | 1,645 | | 1,403 |
+---------------------------------+---------+----------+---------+----------+----------+
| Corporate income tax paid | (899) | | (837) | | (7,472) |
+---------------------------------+---------+----------+---------+----------+----------+
| Offsetting against other tax | (1) | | (1) | | 5,574 |
| payables (receivables) | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
| Income tax payable at the end | 1,985 | | 1,505 | | 698 |
| of the period | | | | | |
+---------------------------------+---------+----------+---------+----------+----------+
29. Earnings (loss) per share
Earnings (loss) per share are calculated by dividing the net distributable
profit (loss) for the period by the weighted average number of ordinary shares
held during the reporting period. The Parent company has not issued any
potential ordinary shares.
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| Weighted average | 63,566 | | 63,490 | | 63,566 | | 63,156 |
| number of shares | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| Profit (loss) | (8,698) | | (4,253) | | (5,252) | | 1,210 |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| Earnings (loss) per | (0.14) | | (0.07) | | (0.08) | | 0.02 |
| share (BGN) | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
Weighted average number of shares in circulation in 2010 and 2009 is as follows:
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, 2010 | | 30, 2009 | | 30, | | 30, |
| | BGN'000 | | BGN'000 | | 2010 | | 2009 |
| | | | | | BGN'000 | | BGN'000 |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| Number of shares at | 63,566 | | 63,471 | | 63,566 | | 63,454 |
| the beginning of the | | | | | | | |
| period | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| Effect from redeemed | - | | 19 | | - | | 62 |
| own shares | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
| Weighted average | 63,566 | | 63,490 | | 63,566 | | 63,516 |
| number of shares | | | | | | | |
+------------------------+----------+----------+----------+----------+---------+----------+---------+
30. Subsidiaries
The subsidiaries, included in the consolidation, over which the Group has
control as of
June 30, 2010, March 31, 2010 and December 31, 2009 are as
follows:
+------------------+------------------+------------+------------+------------+
| Subsidiary | Main activity | Investment | Investment | Investment |
| | | as of | as of | |
| | | June 30, | March 31, | as of |
| | | 2010 | 2010 | December |
| | | | | 31, 2009 |
+------------------+------------------+------------+------------+------------+
| | | | | |
+------------------+------------------+------------+------------+------------+
| Naftex Petrol | Wholesale with | 100% | 100% | 100% |
| EOOD | fuels | | | |
+------------------+------------------+------------+------------+------------+
| Petrol Trans | Transport | 100% | 100% | 100% |
| Express EOOD | services | | | |
+------------------+------------------+------------+------------+------------+
| Petrol Technika | Service and | 100% | 100% | 100% |
| EOOD | maintenance of | | | |
| | fuel stations | | | |
+------------------+------------------+------------+------------+------------+
| Petrol Gas OOD | Wholesale with | 90% | 90% | 90% |
| | fuels | | | |
+------------------+------------------+------------+------------+------------+
| Petrol | Real estate and | 100% | 100% | 100% |
| Properties EOOD | moveable | | | |
| | property trade | | | |
+------------------+------------------+------------+------------+------------+
| Elite Petrol EAD | Real estate | 100% | 100% | 100% |
| | advisory and | | | |
| | intermediation | | | |
| | services | | | |
+------------------+------------------+------------+------------+------------+
31. Related party disclosures
The related parties which the Parent company controls and has significant
influence on are disclosed in notes 30 and 15.
The Parent company is controlled by Petrol Holding AD.
The following transactions with related parties have been performed during the
reporting period:
+---------------------------+-------------------------------------+
| Related party | |
+---------------------------+-------------------------------------+
| | |
+---------------------------+-------------------------------------+
| Petrol Holding AD | Controlling company |
+---------------------------+-------------------------------------+
| Naftex Security EAD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| Interhotel Bulgaria | Subsidiary of Petrol Holding AD |
| Burgas EOOD | |
+---------------------------+-------------------------------------+
| Jurex Consult AD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| Transcard ?D | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| ?ransat AD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| BPI EAD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| Varna Business Services | Subsidiary of Petrol Holding AD |
| EOOD | |
+---------------------------+-------------------------------------+
| Eurocapital Bulgaria AD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| ?rans Telecom AD | Associate of Petrol Holding AD |
+---------------------------+-------------------------------------+
| PSFC Chernomoretz ?D | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| SOCCRAT EAD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| Naftex Trade EOOD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
| Petrol Trade EOOD | Subsidiary of Petrol Holding AD |
+---------------------------+-------------------------------------+
31. Related party disclosures (continued)
The transactions performed relate primarily to:
· purchase and sale of liquid fuels;
· granting and receiving loans;
· purchase and sale of property, plant and equipment;
· Holding fees and services.
In first six months of 2010 and 2009 transactions with related parties are as
follows:
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Sale of goods, | Six | | Six | | Three | | Three |
| services and | months | | months | | months | | months |
| non-current assets | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, | | 30, | | 30, | | 30, |
| | 2010 | | 2009 | | 2010 | | 2009 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Related parties | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Controlling company | 108 | | 143 | | 55 | | 80 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Companies under | 1,853 | | 1,332 | | 1,004 | | 629 |
| common control | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Associates | 2 | | 6 | | 1 | | 4 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | 1,963 | | 1,481 | | 1,060 | | 713 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Purchase of goods, | Six | | Six | | Three | | Three |
| services and | months | | months | | months | | months |
| non-current assets | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, | | 30, | | 30, | | 30, |
| | 2010 | | 2009 | | 2010 | | 2009 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Related parties | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Controlling company | 1,812 | | 1,847 | | 901 | | 814 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Companies under | 37,903 | | 132,819 | | 1,227 | | 73,295 |
| common control | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Associates | 123 | | 212 | | 57 | | 199 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | 39,838 | | 134,878 | | 2,185 | | 74,308 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Finance income | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, | | 30, | | 30, | | 30, |
| | 2010 | | 2009 | | 2010 | | 2009 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Related parties | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Controlling company | 2,574 | | 1,366 | | 1,374 | | 581 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Companies under | 25 | | 9 | | 20 | | - |
| common control | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | 2,599 | | 1,375 | | 1,394 | | 581 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Finance costs | Six | | Six | | Three | | Three |
| | months | | months | | months | | months |
| | ended | | ended | | ended | | ended |
| | June | | June | | June | | June |
| | 30, | | 30, | | 30, | | 30, |
| | 2010 | | 2009 | | 2010 | | 2009 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Related parties | BGN'000 | | BGN'000 | | BGN'000 | | BGN'000 |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Controlling company | - | | 16 | | - | | - |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| Companies under | 119 | | - | | 74 | | - |
| common control | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | | | | | | | |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
| | 119 | | 16 | | 74 | | - |
+----------------------+---------+----------+---------+----------+---------+----------+---------+
31. Related party disclosures (continued)
The outstanding balances with related parties as of June 30, 2010, March 31,
2010 and December 31, 2009 are as follows:
+-------------------------------+-------------+-+-------------+-+-------------+
| Related parties | June | | March | | December |
| | 30, | | 31, | | 31, |
| | 2010 | | 2010 | | 2009 |
+-------------------------------+-------------+-+-------------+-+-------------+
| | BGN'000 | | BGN'000 | | BGN'000 |
+-------------------------------+-------------+-+-------------+-+-------------+
| | Receivables | | Receivables | | Receivables |
+-------------------------------+-------------+-+-------------+-+-------------+
| | | | | | |
+-------------------------------+-------------+-+-------------+-+-------------+
| Controlling company, | 74,695 | | 65,932 | | 59,075 |
| including: | | | | | |
+-------------------------------+-------------+-+-------------+-+-------------+
| Interest-bearing loans | 63,016 | | 21,034 | | 21,034 |
| -non-current portion | | | | | |
+-------------------------------+-------------+-+-------------+-+-------------+
| Interest-bearing loans - | 7,826 | | 42,287 | | 35,910 |
| current portion | | | | | |
+-------------------------------+-------------+-+-------------+-+-------------+
| Companies under common | 4,023 | | 3,500 | | 3,599 |
| control | | | | | |
+-------------------------------+-------------+-+-------------+-+-------------+
| Associates | 267 | | 17 | | 12 |
+-------------------------------+-------------+-+-------------+-+-------------+
| | | | | | |
+-------------------------------+-------------+-+-------------+-+-------------+
| | 78,985 | | 69,449 | | 62,686 |
+-------------------------------+-------------+-+-------------+-+-------------+
+-------------------------------+----------+--+----------+--+----------+
| Related parties | June | | March | | December |
| | 30, | | 31, 2010 | | 31, 2009 |
| | 2010 | | | | |
+-------------------------------+----------+--+----------+--+----------+
| | BGN'000 | | BGN'000 | | BGN'000 |
+-------------------------------+----------+--+----------+--+----------+
| | Payables | | Payables | | Payables |
+-------------------------------+----------+--+----------+--+----------+
| | | | | | |
+-------------------------------+----------+--+----------+--+----------+
| Controlling company | 1,081 | | 2,505 | | 1,452 |
+-------------------------------+----------+--+----------+--+----------+
| Companies under common | 44,893 | | 31,287 | | 40,154 |
| control, including: | | | | | |
+-------------------------------+----------+--+----------+--+----------+
| Interest-bearing loans - | 2,582 | | - | | - |
| current portion | | | | | |
+-------------------------------+----------+--+----------+--+----------+
| Associates | 92 | | 115 | | 137 |
+-------------------------------+----------+--+----------+--+----------+
| ?ey management staff | 1,295 | | 1,295 | | 1,295 |
+-------------------------------+----------+--+----------+--+----------+
| Interest-bearing loans - | 1,295 | | 1,295 | | 1,295 |
| current portion | | | | | |
+-------------------------------+----------+--+----------+--+----------+
| | | | | | |
+-------------------------------+----------+--+----------+--+----------+
| | 47,361 | | 35,202 | | 43,038 |
+-------------------------------+----------+--+----------+--+----------+
32. Contingent assets and liabilities
32.1. Contingent assets
In 2006 the Group invoiced and recognized income from penalties at the amount of
BGN 8,196 thousand which were accrued to counterparty due to quantitative
non-execution of a contract for fuel supply. As of December 31, 2006 this
recorded income was reversed as the management estimated that the criteria for
income recognition in compliance with IAS 18 Revenue were not met. In this
relation a contingent receivable at the amount of BGN 8,196 thousand occurred
for the Group because the receivable from the Counterparty is not recognized in
the financial statements.
32.2. Contingent liabilities
As of June 30, 2010 the Group has contingent liabilities on issued promissory
notes in relation to loan contracts and finance lease agreements at the amount
of BGN 97,251 thousand, promissory notes guaranteed to third partiesunder
obligations of related parties at the amount of BGN 29,913 thousand, issued
corporate guarantees serving as collateral for bank loans of related parties at
the amount of BGN 39,847 thousand, issued bank guarantees in favor of the
Customs Agency for deferred payment of excise at the amount of BGN 32,081
thousand and issued bank guarantees serving as collateral for delivery of fuels
at the amount of BGN 753 thousand.
As of June 30, 2010 assets with a carrying amount of BGN 131,323 thousand are
mortgaged and pledged as collateral on bank and trade loans, granted to the
Group, Controlling company and other related parties (see also notes 14, 19, 20
and 21).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUBGRUPUGQA
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