State Energy Regulation Commission (SERC) fixed the quotas of electricity local plants will be allowed to negotiate directly with big-scale consumers in 2005 by decision date December 20 2004, thus settling the argument between the energy ministry and the privatization agency. The institutions were not able to reach a common stand on the proposals, made by the consultant in the privatization of the thermal power plants, to sign 10-year contracts with the National Electricity Distribution Company (NEC) for buy up of the electricity produced in the plants in Rousse, Varna and Bobovdol. Ministry of energy and energy resources stated this would block the liberalization of the market and suggested the term of the contracts should be 2.5 years. Following SERC’s decision, TPP – Varna will be able to release freely 574 mln kWh of electricity – more than NPP Kozloduy, which is allowed to release 500 mln kWh. TPP Bobov dol has the right to sell 258 mln kWh. One of the units of TPP-Rousse will be able to release 42 mln kWh. The rest of the produced electricity will have to be sold to NEC at prices, determined by SERC no December 22. TPP Varna and TPP Rousse so far sold to NEC at price of respectively BGN 47.78 and BGN 49.28/mWh. As of January 1 2005, they will sell at respectively BGN 42.39 and BGN 46.64. The prices are VAT not included. The price for TPP Bobov dol will be changed from BGN 48.56 to BGN 48.54/mWh. In 2004, only 9 per cent of the Bulgarian energy market war liberalized., this year 40 per cent of it will have to be liberalized, and in 2007 the liberalization process should be completed. The limit of annual consumption for clients, who can choose their electricity producer themselves, will drop from the current 40 to 23 gWh annually from the middle of 2005 on. Big buildings will also be able to choose their electricity supplier. Currently, 10 enterprises have this right. They are mines Maritza Iztok, Stomana Industry, KCM – Plovdiv, Asarel-Medet, Umicore Med, Devnya Cement, LUKoil, Agropolychim, and Neochim.
Source: Sega (03.01.2005)

Ministry of Environment and Waters has issued a total of 23 complex permits to installation operators. In the end of last year, the ministry granted permits to 10 enterprises: Terem Ivaylo SP Ltd., Veliko Tarnovo, Panchim Ltd., Stara Zagora, Orgachim JSC, Rousse, Balkanpharma Dupnitza JSC, Metal Products JSC, Bourgas, Vetbiopharm Ltd., Vratza, Polychrom POAP JSC, Sofia, Vidima JSC, Sevlievo, Nova Plama JSC, Pleven, Agria JSC, Plovdiv.
Source: Construction City (10.01.2005)

Bulgaria needs some EUR 9 bln to be fully able to apply EU legislation in the field of ecology. Half of the money will have to be invested by the local business within the coming 10 years. In the field of environment protection, EU applies som 300 documents and 70 new directives, but when the Bulgarian Government closed the Environment chapter of the negotiations, we managed to negotiate only 10 transition periods for the most expensive measures. The rest of the investments are supposed to cover be covered by EU’s pre-accession funds, the state budget and the ecology ministry. They will come as gratuitous aids. Ecological improvements in the business sector are related to big investments, which should be made within tight deadlines. The companies to suffer most from these measures are the companies which have former pollution and big fuel installations. The first completed pilot project is worth USD 25 mln. The funds were assimilated by MDK – Pirdop. In 2003 alon, seventeen programmes for elimination of past ecological damages have been approved. Among them are some of Bulgaria’s biggest companies: MDK JSC, Assarel Medet JSC, Kremikovtzi JSC, Neftochim JSC, Neochim JSC, Sopharma JSC, Agropolychim JSC, Osogovo JSC, KCM JSC, Geosol JSC, Biovet JSC, Pirel JSC, Gorubso Lucky JSC, OCK JSC, Gorubso Rudozem JSC, etc.
Source: Pari (11.01.2005)

NSSI announced the top 20 most loyal employers with a personnel of over 1000 people for 2004, insuring a total of 104 959 men with an average insuring income of BGN 545: The company is included in the list.
Source: Other (08.02.2005)

The Board of Directors of Ecobulpack JSC - Sofia would like to announce that: 1. The capital of Ecobulpack JSC – Sofia was increased from BGN 51 000 up to BGN 100 500 through the issue of 495 registered shares with a par value of BGN 100 under the term that the newly issued shares are bought by certain entities at certain price; the shares are offered in 33 stakes each including 15 shares with an issue value of BGN 100; 2. Deprives company’s shareholders of the right of acquiring proportional part of the new shares, as they should be underwritten and acquired by the following waste makers: Megaport LTD - Veliko Tarnovo, Dobrudzhanski hlyab JSC - Dobrich, Marketsmetal - SPLTD, Sofia, Sopharma JSC - Sofia Bulgarian Yogurt LTD - Ravda, Daniela Ivanova – Specter coms ST - Kyustendil, TPK Mihalkovo - Mihalkovo, Devin Municipality, Hlyab i Hlebni Izdelia-Kazanlak LTD - Kazanluk Inter Business 91 LTD - Sofia, Hlyab i Hlebni Izdelia - Elhovo, RMZ-Iliantsi SPLTD - Sofia, Neochim JSC - Dimitrovgrad, Rodopea -Belev - SPLTD,Smolyan, Solvay-Sodi JSC - Devnia, Eldominvest LTD - Varna, Vinex-Preslav JSC - Preslav, Bulgartabac Holding JSC - Sofia, Vinprom - Peshtera JSC - Plovdiv Metal-Varna JSC - Varna, Darko JSC - Sofia, Kenar SPLTD - Sofia, Vinprom Alvina LTD - Dobrich, Loviko Lozari JSC - Sofia, Trivar LTD - Gabrovo, Maxim Srandev – M ST – Kyustendil Domaine Boyar JSC - Sofia, Topaz mel LTD - Sofia, Bulhart LTD - Pazardzhik, Zvezda JSC - Dolna Mitropolia, Pliska LTD - Shoumen, Sof Kao LTD - Sofia, Vinex-Slavyantsi JSC - Slavyantzi, Phoenix Inverse LTD - Lovetch; 3. Sets a 31-day term for shares’ underwriting as of the date of promulgation of the decision for capital’s increase.
Source: State Gazette (18.03.2005)

Dimitrovgrad-based fertiliser plant Neochim JSC said Q1 profits tumbled by 8.3% y/y to BGN 4.3 mln or BGN 1.63 per share. Net sales fell from BGN 57.13 mln a year earlier to BGN 54.26 mln in Q1. The assets of the fertiliser plant increased by BGN 4.4 mln to BGN 113.96 mln during the reviewed period.
Source: Dnevnik (27.04.2005)

Orders from the New World will save this summer the workers of the Dimitrovgrad-based Neochim from the usual long summer vacation. The fertilizer enterprise has received orders for some 20,000-25,000 tons from Brazil and the USA, the company's BoD Chairman Tosho Dimov told the BANKER weekly. "Because of these orders the plant will be working till June instead of going out on a 'summer holiday' as usual", Mr. Dimov added. He recalled that last year the company entirely renewed its main ammonia production, investing EUR6MN in it. "We'll continue the construction of an electricity generator that will serve Neochim", Mr. Dimov added. About EUR3MN has been invested in the generator so far and the amount may reach EUR5MN till the project's completion. Neochim's net profit for the first quarter of 2005 is BGN4.3MN, about BGN400,000 down year-on-year. Sales proceeds for the same period totalled BGN51.1MN, down from BGN54.9MN in January-March 2004. The plant's expenditures in the first three months of 2005 amounted to BGN37.5MN, and the undistributed profit was BGN59.5MN. Like all domestic fertilizer enterprises Neochim has huge liabilities to the state-run gas distributor Bulgargas - BGN14.1MN - rescheduled for ten years under an agreement from the end of 2002. The Necohim joint-stock company has equity capital of BGN2.7MN, distributed between Euro Fert AD - Dimitrovgrad (49%), Karifert International - Lebanon (16.05%), Agrofer International Establishment - Liechtenstein (7.68%), Albena Invest Holding (6.38%), and others. The company is managed by the Executive Director Dimiter Dimitrov and has 1,380 employees. Neochim has eight subsidiaries: Neochim Engineering, Himik, Neochim Catering, Neochim Tour, Neochim Protect, Trakia Press 21 Century, Neochim SA - Odrin, and Neochim Ltd. - Odrin. On October 25, 2002 and November 2004, respectively, the managers of the Dimitrovgrad-based firm made decisions to wind down Neochim SA - Odrin and Himik. The process in the Turkish subsidiary has not been completed yet, while Himik has already begun to get the statute of Neochim's workshop. At the expense of that the company's managers increased the capital of Neochim Tour EOOD to BGN740,000 by contributions in kind - land, buildings and equipment.
Source: Banker (03.05.2005)

The National Social Security Institute announced the 50 most loyal employers for the first quarter of 2005 with personnel of over 1000 people, insuring totally 106 811 people with an average insurance income of BGN 561. The company is included in the list.
Source: Other (09.05.2005)

The Board of Directors of Neochim JSC - Dimitrovgrad convenes an Annual General Meeting of the shareholders on June 24 2005.
Source: State Gazette (17.05.2005)

Neochim JSC - Dimitrovgrad, Bourse code NEOH, the General Meeting of which was held on June 24 2005, shall distribute gross dividend for 2004 of BGN 0.15. Neochim JSC - Dimitrovgrad reported a profit to the amount of BGN 3,300,000.
Source: Capital market (30.06.2005)

Haskovo District Court applies the audited and adopted 2003 financial report to the company case of Neochim JSC - Dimitrovgrad.
Source: State Gazette (15.07.2005)

Haskovo District Court registered the following changes for Neochim JSC - Dimitrovgrad: effaces as member of the Board of Directors TK - HOLD JSC - Sofia, represented by Mr. Stefan Marinov Nenov; registers as member of the Board of Directors Ms. Elena Simeonova Shopova; registers the decision made at the general meeting of the shareholders held on November 26 2005 about buyback of shares of the company’s capital.
Source: State Gazette (26.07.2005)

Fertiliser maker Neochim reported a BGN 9.851 million for the first half of 2005, as compared to BGN 4.649 million for the corresponding period last year. The company generated a profit of BGN 4.337 million for the first quarter of 2005. Favourable results are due to increased exports that showed a 22% year-on-year rise. Neochim's sales revenue marked a 24% jump for the first six months of the year, as compared to the situation a year earlier.
Source: Pari (29.07.2005)

The 2005’s first half top 50 most law-abiding employers with a personnel of over 1000 people, insuring a total of 106,852 employees with an average insurance income of BGN 592. The company is included in the list. 1. Nuclear Power Plant Kozloduy SPJSC - Kozloduy 9 Ideal Standard Bulgaria JSC - Sevlievo 13 Bulgarian Telecommunication Company JSC - Sofia 26 Asarel Medet JSC - Panagyurishte
Source: Other (08.08.2005)

The General Meeting of the Shareholders of Dimitrovgrad-based Neochim, which was held on 24 June 2005, decided to buy back up to 3 per cent of the total number of shares, issued by the company so far (i.e. up to 79 630 shares). The maximum price in the buy-back has been set at BGN 30 per share, while the minimum is seen at BGN 20.
Source: Monitor (22.08.2005)

Neochim JSC reported a net consolidated first half profit of BGN 10.897 mln, growing by 149.24 per cent compared to the same period last year when the profit stood at BGN 4.372 mln, company’s financial report presented at BSE - Sofia JSC showed. The general operating income increased by 10.22 per cent, reaching BGN 10.573 mln. The growth is mainly due to the higher sales income and the raised revenues in Others fund.
Source: Monitor (30.08.2005)

Neochim JSC registered a 150-per cent growth in its 2005 first-half profit. Operating income was up 10.22 per cent, reaching BGN 114 010 mln.
Source: Pari (30.08.2005)

While oil prices keep soaring, the fact that natural gas prices grew by 1.6% in a year came as a pleasant surprise to chemical plants which are among the largest blue fuel consumers in the country. Bulgargas currently sells 1,000 cubic metres of natural gas to chemical enterprises at BGN234.46. A year earlier plants paid BGN231.75 for the same quantity. However, even these figures will hardly satisfy the managers of fertilizer plants which pay 80% of their material costs for blue fuel. The only operating companies in the branch right now are Neochim and Agropolychim. They demonstrated enviable results for the first half of the year and still never stop seeking ways to raise their efficiency. Being a public company, Neochim drew the attention of the investors also due to the fact that its share prices grew up by 16.67% in the past three months. The company ended the first six months with a non-consolidated profit amounting to BGN9.85MN. It is worth mentioning that for the same period of 2004 the profit was twice lower - BGN4.6MN. Sales revenues of the Dimitrovgrad-based plant went up, too - from BGN94.5MN to BGN109.7MN. Neochim's swollen turnover is mainly due to sales abroad which brought it BGN66.7MN worth revenues. It should be noted that the plant went out in summer holiday a little later than it usually does because of orders from the USA and Brazil for about 20,000-25,000 tons of fertilizer. Ammonium nitrate is the most actively bought product on both the foreign and the domestic market and accounts for a half of the company's revenues. The expenses of the Dimitrovgrad-based fertilizer producer have grown, too, although with a slower speed - from BGN90.9MN to BGN101.3MN. BGN59.7MN of the money went for the purchase of natural gas. That is why it is no surprise that the company accumulated long-term liabilities to Bulgargas. They amount to BGN14.1MN as of June 30. In 2002, the managers of Neochim reached an agreement with the state monopolist to pay off their debt rescheduled in ten years with a two-year grace period. At present, large stakes in the company are held by Euro Fert AD - Dimitrovgrad (49%), Karifert International - Lebanon (16.07%), Agrofer International Establishment - Liechtenstein (7.68%), and Albena Invest Holding AD (6.38%). The managers of the other fertilizer plant operating now, the Devnya-based Agropolychim, did their best in 2005 to limit as much as possible the company's relationships with the monopolist Bulgargas. In July, the Commission for the Protection of Competition permitted the Swiss company Wintershall Erdgas Handelshaus Zug AG to acquire 51% of the shares of Agropolychim in Dexia Bulgaria EOOD - Devnya. The deal aims at improving the efficiency of the natural gas commercial operations. In fact, it is worth noting that Dexia-Bulgaria's only activity is to buy natural gas from the producer, Petreco Bulgaria EOOD, and sell it to the Devnya-based fertilizer plant. In 2004, Dexia-Bulgaria delivered about 27% of the blue fuel Agropolychim needed, and for the first half of 2005 its share in the supplies reached 78 per cent. The Swiss company's role is to propose a solution for the construction of energy saving production installation. The partnership also stipulates a future possibility for additional natural gas supplies. Currently, Bulgargas controls 92.15% of the natural gas trade in the country, and companies from the chemical branch consume 33.79% of the raw material. Another big natural gas consumer is the Rousse-based producer of paints, lacquers and glues Orgachim. The company became a hit on the Bulgarian stock exchange as its share prices jumped from BGN40.40 to BGN63 for three months. It ended the first half of the year with a net profit amounting to BGN880,000. For comparison, the profit amounted to BGN571,000 a year earlier. It should be noted, however, that the company ended the first quarter at a BGN833,000 loss which its managers explained with the changed dollar/lev rate and the slack market of paints and lacquers. However, Orgachim's half-year revenues indicate that the new season is much more beneficial. They are up from BGN21.5MN to BGN37.5MN. Sales revenues (grown from BGN21.2MN to BGN34.4MN) contributed most to that growth. Orgachim holds about 37% of the domestic paints and lacquers market. Still, export accounts for 57% of its revenues. The company exports its products to Turkey, Greece, Romania, Egypt, Central Europe, the Near East and the former Soviet republics. Its operating costs have increased, too (up from BGN20.5MN to BGN33.4MN). As it happened with Agropolychim, Orgachim's market position attracted the interest of a western company. In June, the Spanish Nubiola acquired a unit of the Bulgarian chemical enterprise and paid EUR1.5MN. A great part of the products will be used in the production of the Rousse-based company. Orgachim was established almost one century ago. In 1998, 51% of its capital was privatized by the Maltian Whitebeam Holdings Limited (which currently controls 64.21%). However, the actual owner is the Romania-registered Policolor AD which is also Orgachim's trade partner.
Source: Banker (07.09.2005)

Haskovo’s district governor Ms. Raina Yovcheva and the manager of Neochim JSC Mr. Dimitar Dimitrov gave the official start of the construction of a turbo-generator plant to produce electricity independently of the National Electric Company. Overheated, never used so far steam of the “Nitric Acid” workshop in Neochim, will be used for the manufacture. The plant will supply Neochim with one third of the electricity needed and is supposed to start operating by March 2006.
Source: Monitor (13.09.2005)

On September 20 Neochim JSC – Dimitrovgrad kicks off the payment of the dividend voted for 2004, the company announced. At the general meeting of the shareholders, held on June 24, a decision was made that the company should distribute a dividend for 2004 to the amount of BGN 0.15 per share. The net dividend per share is BGN 0.1395.
Source: Dnevnik (17.09.2005)

Local trade unions and employers strongly oppose high fuel prices Trade unions and employers in Bulgaria are ready to sue the State Energy and Water Regulation Commission (SEWRC) for the increase in natural gas prices, the leader of the Confederation of Independent Trade Unions in Bulgaria, Zhelyazko Hristov, said at a meeting with representatives of the most affected sectors: metallurgical enterprises, fertiliser plants, producers of inert materials. The meeting was held just a few hours before SEWRC's closed-door session, which had to approve Bulgargas's proposal for appreciation of natural gas by 22.54% from October 1. However, the regulator did not take a decision on the issue, nor on the suggested increase in electricity prices for low- and medium-voltage users. Such a drastic raise will result in lay-offs and wage freeze; it will affect the cost prices of the products of energy-intensive sectors and the enterprises using natural gas as raw material, employers warned. The companies working on international contracts base on the old prices expect to suffer enormous losses. If the proposal is approved, both employees and employers will go to the streets, the trade union said. The drastic jump in natural gas prices will result in collapse in local metallurgy, although this sector is developing very well at the moment, Ms. Politimi Paunova, CEO of the Branch Chamber of Ferrous and Non-ferrous Metallurgy said. 37 per cent of the total consumption of natural gas in Bulgaria goes for this sector and when the price of the material becomes unfavourable, the company may choose to use cheaper energy sources, such as fuel oul and solid fuel. This will have negative effect on the environment and the companies won’t be able to meet EU ecological requirements. The prime cost of Kremikovtzi’s production has increased by 6 per cent due to higher natural gas prices, the member of the plant’s managing board Mr. Bojko Bojkov said. By the end of this year, the company will work at loss. The successful implementation of the investment programme is under threat, because at the time of its privatization, the price of fuel was BGN 170/1000 cu m, while now it has already reached BGN 280. Agropolychim is planning an 18-per cent increase in ready-produce prices, which means the prices of fertilizers on the domestic market will jump by BGN 35-40/t. This will result in higher grain prices – by over 6 per cent, and a 7 per cent rise in the price of bread, Mr. Vasil Alexandrov, CEO of Agropolychim said. The planned loss of the company under export contracts will increase to 50 per cent. A series of installations may be stopped. Similar forecasts were made by the Dimitrovgrad-based fertilizer plant Neochim. Kaolin JSC expects an annual loss of over BGN 1 mln due to higher natural gas prices and growing annual costs (this year, they are higher by BGN 200 000) due to the 5-per cent rise in electricity prices, mid-voltage. The company warned it might have to cut 150 jobs. The problem is that the market is not liberalized and Bulgargaz is a monopolist in the import of natural gas, Mr. Konstantin Stamenov from Stomana Industry summarized.
Source: Pari (28.09.2005)

Bourgas Port installs new equipment Bourgas Port has started to replace its old equipment for lifting and transportation of metals, the port’s management announced. The port already uses the new fork lifter Kalmar to unload cargo. By the end of this year, a special facility for container processing Reachstaker will arrive. The two machines will be used for the new ship slots, opened under a project for expansion of the port complex. Three special trailers for transportation of cargo in the region of the quays are also expected to arrive. Recently, a new rear mobile equipment for processing of loose cargo in the warehouse regions, loading of wagons and cleaning of the ship holds, were also recently delivered under the expansion project. In the last year alone, over BGN 1.2 mln were invested in new equipment, another over BGN 400 000 were spent on repair works, the administration of the port pointed out. This year, the building and equipment of the first three ship slots under the expansion project is due to be completed. The work under this project was officially launced on 10 August 1999, and the building of the facility began in June 001. “Some of the biggest loaders in Bulgaria work with Port – Bourgas SP JSC – Kremikovtzi, Stomana, Promet, which is developing very rapidly, as well as other big enterprises such as Neochim and the KCM in Plovdiv. We also have other clients, who would love to work with Bourgas, but due to the poor infrastructure we are not able to serve all of them,” the port’s CEO Mr. Krustan Zolumov commented. In his opinion, the building and equipment of the 2A terminal and the overall expansion of the port is one of the ways to create conditions for faster and cheaper processing of cargo and to attract new clients. At this stage, about 40 per cent of the container traffic to and from Bulgaria passes through the Thessaloniki port. “This traffic can be redirected to Bourgas, which would be of great help for the local business,” Mr. Zolumov stated.
Source: Dnevnik (19.10.2005)

Neochim announced a net non-consolidated profit of BGN 11,056 mln (BGN 4,16 per share) for the nine-month period of 2005, versus BGN 2,771 mln (BGN1,04 per share) y/y, Bulgarian Stock Eschange (BSE) data shows. The net sales revenues reported a growth by 15,39 per cent to BGN 143,417 mln, mostly on sales production revenues increase, while expenses by type reported a rise by 9,04 per cent to BGN 133,026 mln. The capital stock of the company is BGN 2,654 mln, and the owner’s equity – BGN 71,331 mln.
Source: Monitor (30.11.2005)