Petrol AD

Quarterly Report • Sep 30, 2011

STATEMENT OF COMPREHENSIVE INCOME For the period ended September 30, 2011

	Note	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Revenue	1	978,244	735,169
Other income	2	898	1,325
Cost of goods sold		(951,090)	(709,169)
Materials and consumables	3	(487)	(481)
Hired services	4	(11,679)	(10,805)
Employee benefits expenses	5	(3,786)	(3,368)
Depreciation and amortization expenses		(1,325)	(1,171)
Other expenses	6	(3,439)	(1,991)
Finance income	7	6,586	3,825
Finance cost	7	(214,902)	(226,256)
Loss before taxation		(200,980)	(212,922)
Income tax expense (benefit)		1,657	1,240
Loss for the period		(199,323)	(211,682)
Total comprehensive income for the period		(199,323)	(211,682)

STATEMENT OF FINANCIAL POSITION As of September 30, 2011

	Note	September 30, 2011 BGN'000	December 31, 2010 BGN'000
Non-current assets
Property, plant, equipment and intangible assets		47,550	46,918
Investments in subsidiaries	8	50,947	46,404
Interest-bearing loans granted	10	11,943	34,902
Compulsory stock		63,980	34,939
Deferred tax assets		5,396	3,739
Total non-current assets		179,816	166,902
Current assets
Inventories	9	18,356	35,195
Interest-bearing loans granted	10	10,312	9,239
Trade and other receivables	11	157,779	27,128
Short-term financial assets		194,799	363,645
Recoverable income tax	16	104	104
Cash	12	60,315	4,982
Total current assets		441,665	440,293
Total assets		621,481	607,195
Equity
Share capital	13	262,757	62,757
Retained earnings		(223,424)	(1,185)
Total equity		39,333	61,572
Non-current liabilities
Interest-bearing loans	14	4,467	4,454
Total non-current liabilities		4,467	4,454
Current liabilities
Trade and other payables	15	338,561	195,271
Interest-bearing loans	14	239,120	345,898
Total current liabilities		577,681	541,169
Total liabilities		582,148	545,623
Total equity and liabilities		621,481	607,195

STATEMENT OF CHANGES IN EQUITY For the period ended September 30, 2011

	Share capital BGN'000	Retained earnings BGN'000	Total BGN'000
Balance as of January 1, 2010	62,757	(24,101)	38,656
Loss for the period	-	(211,682)	(211,682)
Balance as of September 30, 2010	62,757	(235,783)	(173,026)
Profit for the period	-	234,598	234,598
Balance as of December 31, 2010	62,757	(1,185)	61,572
Contributions by owners Loss for the period Distribution of dividends	200,000 - -	- (199,323) (22,916)	200,000 (199,323) (22,916)
Balance as of September 30, 2011	262,757	(223,424)	39,333

STATEMENT OF CASH FLOWS For the period ended September 30, 2011

	September 30,	September 30,
	2011 BGN'000	2010 BGN'000
Cash flows from operating activities
Proceeds from customers	1,013,598	795,669
Payments to suppliers	(644,582)	(463,150)
VAT and excise duty paid to the state budget	(343,984)	(303,996)
Payments to employees	(3,802)	(3,132)
Cash generated from operations	21,230	25,391
Income tax paid	-	(181)
Net cash generated by operating activities	21,230	25,210
Cash flows from investing activities
Proceeds from sale of financial assets	2,304	-
Payments for acquisition of financial assets	(4,961)	-
Payments for purchase of property, plant and equipment	(2,629)	(2,919)
Proceeds from sale of property, plant and equipment	73	44
Interest-bearing loans granted	(75,653)	(25,298)
Interest received	453	816
Dividends received	-	260
Cash flows from dealing with derivatives, net	-	(121)
Net cash used in investing activities	(80,413)	(27,218)
Cash flows from financing activities
Proceeds from borrowings	81,033	8,264
Repayment of borrowings	(18,127)	(9,998)
Interest and commissions paid	(7,252)	(2,922)
Net cash from financing activities	55,654	(4,656)
Net decrease of cash and cash equivalents during the period	(3,529)	(6,664)
Cash and cash equivalents at the beginning of the period	4,833	9,117
Effect of foreign exchange rate changes	(713)	(166)
Cash and cash equivalents at the end of the period	591	2,287

NOTES TO THE FINANCIAL STATEMENTS

1. Revenue

	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Goods	967,791	725,728
Services	10,453	9,441
	978,244	735,169

2. Other income

	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Surplus of assets	732	998
Other	166	327
	898	1,325

3. Materials and consumables

	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Electricity and heating	336	358
Office consumables	43	41
Spare parts	10	14
Water	13	11
Fuels and lubricants	5	5
Work clothes	13	-
Other	67	52
	487	481

4. Hired services

	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Transport	5,500	5,268
Security	1,478	1,035
Holding fee	999	968
Rents	857	701
Maintenance and repairs	666	608
Insurances	535	438
Fees and commissions	882	427
Software licenses	379	501
Consulting and training	218	672
Communications	90	114
Advertising	13	14
Other	62	59
	11,679	10,805

5. Employee benefits expenses

	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Wages and salaries	3,258	2,919
Social security contributions and benefits	528	449
	3,786	3,368

6. Other expenses

	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Shortage of assets	2,311	1,402
Entertainment expenses and sponsorship	407	36
Business trips	96	89
Local taxes and taxes on expenses	166	112
Penalties and indemnities	54	289
Other	405	63
	3,439	1,991

7. Finance income and costs

	September 30, 2011 BGN'000	September 30, 2010 BGN'000
Finance income
Interest income, including:	6,182	3,565
Interest income on loans and deposits granted	3,212	2,884
Interest income on financial assets, held for trading	2,650	-
Interest income on trade receivables	320	681
Other interest income	-	-
Dividends received	-	260
Foreign exchange rate gain, net	404	-
	6,586	3,825
Finance costs
Interest costs, including:	(24,047)	(23,322)
Interest expenses on bank loans	(1,872)	(240)
Interest expenses on trade loans	(18,793)	(22,199)
Interest expense on reverse leasing	(252)
Interest expenses on trade and other payables	(3,130)	(883)
Loss from dealings with financial assets, held for trading	(188,995)	(199,639)
Loss from dealings with derivatives	-	(121)
Foreign exchange rate loss, net	-	(1,463)
Bank fees, commissions and other finance costs	(1,860)	(1,711)
	(214,902)	(226,256)
Finance costs, net	(208,316)	(222,431)

8. Investments in subsidiaries

Investments in subsidiaries	Activity	September 30, 2011		December 31, 2010
		BGN'000	% of capital	BGN'000	% of capital
Eurocapital Bulgaria AD	Property
	management	50,692	100.00%	46,149	89.97%
Jurex Consult AD	Legal services	205	79.95%	205	79.95%
Naftex Security EAD	Security	50	100.00%	50	100.00%
		50,947	-	46,404	-

9. Inventories

	September 30, 2011 BGN'000	December 31, 2010 BGN'000
Goods, including	17,932	34,771
Fuels	17,895	34,299
Lubricants and other goods	37	472
Materials	424	424
	18,356	35,195

10. Interest-bearing loans granted

	December 31, 2010 BGN'000	December 31, 2010 BGN'000
Non-current liabilities
Interest-bearing loans to related parties	11,943	34,902
Current liabilities
Interest-bearing loans to related parties Interest-bearing loans	9,299 1,013	9,239 -
	22,255	44,141

11. Trade and other receivables

	September 30, 2011 BGN'000	December 31, 2010 BGN'000
Receivables from customers and advances granted	122,314	12,472
Related party receivables	25,583	11,930
Litigations and writs	3,530	2,585
Recoverable taxes	36	5
Deferred expenses	197	124
Other	6,119	12
	157,779	27,128

12. Cash and cash equivalents

	September 30, 2011 BGN'000	December 31, 2010 BGN'000
Cash at bank accounts	513	4,739
Cash on hand	78	94
Total cash according to statement of cash flows	591	4,833
Restricted cash	59,724	149
Cash according to the statement of financial position	60,315	4,982

13. Share capital

The share capital of the Company is presented at nominal value, at the amount of BGN 262,757 thousand, distributed into 26,275,733 shares with a nominal value of BGN 10 each.

As of the date of the accompanying financial statements the sole owner of the share capital is Petrol AD.

14. Interest-bearing loans

	September 30, 2011 BGN'000	December 31, 2010 BGN'000
Non-current payables
Sale and leaseback liabilities	4,467	4,454
	4,467	4,454
Current payables
Bank loans	42,729	10,002
Sale and leaseback liabilities	116	312
Trade loans from related parties	117,779	335,584
Trade loans - other	78,496	-
	239,120	345,898
	243,587	350,352

15. Trade and other payables

	September 30, 2011 BGN'000	December 31, 2010 BGN'000
Payables to suppliers	173,018	67,999
Related parties payables	75,161	68,926
Tax payables, including:	73,437	40,165
VAT	35,505	13,557
Excise duty and other taxes	37,932	26,608
Advances received	13,033	17,422
Payables to personnel and to social security funds	572	548
Other	3,340	211
	338,561	195,271

16. Income tax recoverable

	September 30, 2011 BGN'000	December 31, 2010 BGN'000
Payable (recoverable) income taxes at the beginning of the year	(104)	114
Corporate income tax charged	-	-
Corporate income tax paid	-	(218)
Adjusted corporate tax	-	-
Deducted corporate tax with VAT	-	-
Income tax payable (recoverable) at the end of period	(104)	(104)