Lukoil Neftochim Burgas Posts 24.238 Mln Leva Loss For 2006

Lukoil Neftochim Burgas Posts 24.238 Mln Leva Loss For 2006

Lukoil Neftochim Burgas AD posted a loss in the amount of 24.238 mln leva (12 392 692.61 euros) for 2006 after taxes, BTA reports. The reason for the negative result is the state of the international oil markets in 2006 characterized by a steady high price of crude oil and a sharp slump on the ready production market, the company's press service announced after today's annual meeting of shareholders.

Shareholders controlling a total of 28 620 201 shares (93.7% of the capital) attended the meeting. For 2006 the company paid a total of 1.80 bln leva in taxes – VAT, excise and others.

The meeting was attended by Mihail Antonov – chair of the Supervisory Board, Valentin Zlatev – vice-chairman of the Supervisory Board, Yordan Dimov – Deputy Minister of Energy and member of the company's SB, Hristo Hajikolev – representative of minor shareholders and member of the company's SB, Abulgas Klichmuradov – chair of the Board of Directors and all the members of the Board of Directors.

Lukoil Neftohim processed a total of 7.1 mln tonnes of oil in 2006, which is 10.1% more than in 2005.

The investment program of Lukoil Neftochim Burgas AD during the year was aimed at modernization of production, improvement of production quality, and environmental sustainability.

Installation Gas Sulphur 3 started operation, which solved the problem with the increased quantity of hydrogen sulphide from fuel production. The installation's operation is in compliance with the Euro 4 standard for low-sulphur fuel production.

The production of biodiesel fuel was launched in 2006. At the moment the company is constructing an installation for butane izomerization which is almost completed. Lukoil Neftohim Burgas has invested a total of 80 mln dollars during 2006.

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