Bulgarian fertiliser makers Agropolychim and Neochim are urging the economy ministry to reinstate protectionist customs duties on Russian ammonia nitrate imports. An 18% import duty on ammonia nitrate was installed in July 2002 as a 3-year safeguard measure at the insistence of the Bulgarian Fertiliser Industry Association. The economy ministry said on Tuesday it had received no request from either plant to reinstated the import duty. The fertiliser producers fear that farmers would no longer be able to buy their output if Russian state-controlled gas monopoly Gazprom goes through with its plans to raise the price of gas sold to Bulgaria to $230-260 per 1,000 cu m. The plants currently sell their ammonia nitrate products at around 200 levs/t. Bulgaria imported 8,000 tons ammonia nitrate in January-October 2004, shows data of the Bulgarian Customs Agency. Domestic consumption of ammonia nitrate totals 400-500,000 tons annually. Agropolychim produced 360,000 tons of ammonia nitrate last year while Neochim logged a record output of 560,000 tons. The Bulgarian plants are also concerned that the hiked gas prices would make the export to Bulgaria profitable for Russian fertiliser makers. The economy ministry said the Russian trade attache in Bulgaria inquired in December if the import duties on fertilisers had been lifted.
Source: Dnevnik (04.01.2006)

Ovcharov asks business community about the price of gas Bulgarian Minister of Economy and Energy Rumen Ovcharov and the largest consumers of natural gas will discuss the country's supply with natural gas. Representatives of Bulgaria's national gas transit system operator Bulgargaz will also take part in the talks. The meeting is occasioned by the demand of Gazexport (Russia) for amendments to the gas transit contract, which would regulate higher wholesale prices of natural gas for Bulgaria. "The state and the business community will come up with a common stand on the problem," Ovcharov told Nova TV. Representatives of the central heating companies, which consume eighty percent of the Bulgarian natural gas, will also be present at the forum, along with their colleagues of LUKoil Bulgaria, the Neochim and Agropolychim mineral fertilizers plants, the Kremikovtzi smelter and Stomana steel works. At the end of December 2005, Gazexport sent a letter to Bulgargaz, in which they demanded that the prices of transit of Russian natural gas through Bulgaria should be re-negotiated. Bulgargaz replied that the proposal was unacceptable. Shortly before the end of 2005, the wholesale price of natural gas went up by eighteen percent to BGN296 (EUR151) per 1,000 cubic meters (VAT excluded).
Source: Standart (16.01.2006)

The fertilizer producer Neochim reached another historical maximum Monday of BGN 38.15 per share. A total of 2503 shares traded for the day, as the average price settled at BGN 37.23, which makes a daily growth of BGN 3.50. The chemical company attracted investors’ interest and went dearer after reporting extremely good financial results for 2005. According to the preliminary non-consolidated financial report for 2005 the company posted a profit of BGN 12.57 mln, which makes BGN 4.74 profit per share, or some 4 times higher than the one in 2004. The profit increase is reasoned mainly by the increased core activity revenues up to BGN 184.82 mln or growth by 22.6 per cent.
Source: Dnevnik (31.01.2006)

The net consolidated profit of Neochim for 2005 grew by over 3.5 times up to BGN 12.51 mln, company’s report showed. The 2004 profit was BGN 3.5 mln. Net sales revenues increased by 22.5 per cent at annual base up to BGN 188.93 mln. Production sales in 2005 totaled BGN 178.77 mln, as BGN 60.54 mln came from sales on the domestic market and BGN 118.23 mln – from export. The aggregated expenditures of the company posted growth by 15.8 per cent at annual base up to BGN 176.27 mln. The share capital of Neochim is BGN 2.65 mln, as the majority stakeholder is Euro Fert JSC – Dimitrovgrad holding 49.17 per cent. Karifert International, Lebanon holds 16,07 per cent, and Agrofer International Establishment, Liechtenstein and Albena-Invest Holding JSC hold respectively 7.68 and 6.38 per cent of the capital.
Source: Monitor (01.03.2006)

The Board of Directors of Neochim JSC - Dimitrovgrad convenes an annual general meeting of the shareholders of June 9, 2006.
Source: State Gazette (17.03.2006)

A June 9 meeting of the shareholders of Neochim, the Dimitrovgrad-based fertiliser maker, will vote on a proposal to buy back 79,630 shares which represent 3% of the company's capital. Neochim will offer a price of BGN 30 to 35 per share, somewhat below the BGN 38.48 at which the company closed on Friday on the Bulgarian stock exchange. The company did not specify the aim of the buyback. Neochim has rallied 18% on the bourse so far in 2006. The company's consolidated profit quadrupled to BGN 12.512 mln in 2005.
Source: Dnevnik (20.03.2006)

Neochim, the Dimitrovgrad-based fertiliser maker, posted a net profit of BGN 13.46 mln for 2005, up from BGN 10.16 mln a year ago, shows the audited financial statement of the company. The figure beat slightly the preliminary results announced by the company. 2005 revenues rose to BGN 185.8 mln from BGN 151.1 mln a year ago. Neochim bought back 663,000 shares in 2005 and intends to redeem 79,630 shares this year.
Source: Dnevnik (03.04.2006)

The Q1 net profit of Dimitrovgrad-based fertilisers maker Neochim fell by 137,000 levs y/y to 4.2 mln levs, shows the interim non-consolidated report of the company. The 16% jump in earnings to 62.9 mln levs was matched by the growth in expenses which increased to 58.3 mln levs. Neochim's share capital is divided between Euro Fert (49.17%), Karifert International, Lebanon (16.07%), Agrofer International Establishment, Liechtenstein (7.68%) and Albena Invest Holding (6.38%).
Source: Dnevnik (28.04.2006)

The apathy towards the Bulgarian shares again revived in the last session of BSE last week. A little more intense was the bidding for the securities of Central Cooperative Bank, Neochim and Sunny Beach. The shares of the bank turned round over BGN 32 000 and increased by almost 0,5 per cent to BGN 6,50. Neochim won 3,36 per cent and the average price of the shares was BGN 43,41, but there were deals for BGN 43,80. The securities of the south Black sea resort added 10,40 per cent to BGN 19,64.
Source: Monitor (12.06.2006)

Neochim JSC - Dimitrovgrad, Bourse code NEOH, the annual general meeting of which was held on June 9, 2006, will distribute gross dividend for the year 2005 of BGN 0.35 per share (net amount BGN 0.3255). Neochim JSC - Dimitrovgrad reported a profit for 2005 in the amount of BGN 13,460,000.The company shall allocate the residual part of the profit in the Additional Reserves fund.
Source: Capital market (16.06.2006)

Neochim is successor to the chemical plant in Dimitrovgrad, which opened in November 1951 with the production of nitrogen and phosphorous fertilisers. The production facilities were later on expanded, restructured and upgraded. A new complex for ammonia, nitric acid, and ammonium nitrate was put into operation in 1987. The installations for sulphuric and phosphorous acid, phosphorous fertilisers, aniline, and nitrobenzene were shut down in 1992-93. Neochim's line of business includes production of inorganic and organic chemicals, research, engineering, and trade. Neochim is Bulgaria's only manufacturer of formalin, carbamide-formaldehyde resins, sodium nitrate, sodium nitrite, ammonium bicarbonate, liquefied sulphur dioxide, nitrous oxide, polyethylene oxide etc. The forms of product marketing include direct sales and intermediation. The company has storehouses in different regions of the country. It works with 50 to 60 distributors, thus covering the whole territory of Bulgaria. Various incentives are used to encourage sales: discounts, preferential prices, sharing transport costs, storage at the company's warehouses etc. Neochim's products are well received on the international markets. The company has trade relations with partners from Great Britain, France, Italy, Saudi Arabia, Jordan, Israel, Syria, Greece, Turkey, Macedonia, Poland, Serbia and Montenegro, Romania etc. Exports account for 40 to 60% of the sales income. Despite the considerable growth over the past year, the available public information and our own forecasts about Neochim's financial condition show that the stock is undervalued. The shares of the company have followed an upward trend for the past two years, except for the period February-June 2005. After the correction, the price of the stock continued increasing steadily, backed up by good financial results. Neochim's return is bigger than Sofix's but the risk is also higher. The price of natural gas is one of the reasons for the volatility of rates.
Source: Pari (21.07.2006)

BG40 ended the yesterday session at –0.75 per cent which is the biggest decrease of two months. For the mentioned period the index has reported negative result only 10 times, and the yesterday drop was the first in 12 sessions. SOFIX however reported fourth serial hike – by 0.07 percent. The price increase in the shares of Orgachim – by 2.8 percent, and Neochim – by 1.29 per cent, was most useful for both indexes. Petrol (+0.3 per cent) was the third company with increased shares price within the SOFIC frameworks, as only 8 of the blue chips were traded. The decreases were three as well - Central Cooperative Bank lost 0.41 per cent of its capitalization, DZI Insurance and Re-insurance JSC dropped by 0.28 per cent, and Albena – by 0.05 per cent. Biovet and Sopharma were traded without change, and the total turnover in the index shrank to 9498 lots. The session’s most traded company reported the highest increase among the 40 positions in BG40 – after 27,846 traded shares of Alcomet their price upped by 5.89 per cent up to the record of BGN 6.11 per share. Right after it came Chimko (+4.55 per cent), Industrial Capital Holding (+4.23 per cent) and Favorit Holding (+4.17 per cent). The drop of Odessos Shiprepair Yard S.A. (by 6.31 per cent) however did not allow the index reach a new record.
Source: Pari (27.07.2006)

Neochim, the Dimitrovgrad-based fertiliser maker, posted an H1 profit decline of 36% to BGN 6.285 mln from BGN 9.851 mln a year ago. Net sales edged north, going from BGN 109.7 mln a year earlier to BGN 112.1 mln in the first half of '06. Sales abroad fell to 59% of total sales. The assets of the company appreciated to 122.4 mln from BGN 117.3 mln a year ago.
Source: Dnevnik (28.07.2006)

Neochim, the Dimitrovgrad-based fertiliser plant, posted a 43 per cent decline to BGN 6.1 mln in consolidated net profit for the first half of '06, shows the financial report of the company. The main drag on H1 operating costs, reported at BGN 108.8 mln, was fuel. Domestic sales reached BGN 43.5 mln while exports fell slightly to BGN 66 mln.
Source: Dnevnik (31.08.2006)

The Sofix blue-chip index on the Bulgarian Stock Exchange (BSE) rose by 29.39 points on Wednesday to hit an all-time high of 1002.88 points. The strong performance can be put down to the trade in shares of DZI Insurance and Reinsurance company and DZI bank, which resumed on the day. The stock of the insurer appreciated by 20.6% to an all-time high of BGN 120. DZI Bank gained 26.8% also to hit a record high BGN 7.5 per share. Trade in shares of both insurer DZI and DZI Bank was suspended for nine sessions, until the new owner of the majority stake in the bank would become clear. Greece's Eurobank EFG will pay EUR 157.76 million for 74.26% of the capital of DZI Bank, it emerged at the end of last week. Trade in DZI Bank's shares also influenced the performance of the broader BG40 index, which advanced to an all-time high 181.84 points.
Source: Monitor (05.10.2006)

Assenova Krepost, the Asenovgrad-based producer of consumer and transportation packaging materials, said it will kick off next month the construction of a EUR 20 mln cellophane plant in its home town. The new plant, which will be the biggest of its type in Southeast Europe, should be ready in 8 months, boosting annual cellophane production 6 times to 20,000 tons, said Tanyo Banchev, chairman of the company supervisory board. The new equipment is supplied by French company DMT. Assenova Krepost, 56 per cent-owned by Inplastrade, manufactures over 40,000 tons of polyethylene products annually. Famtex, the other main cellophane producer in Bulgaria, has also announced plans to expand its production operations based in the village of Aksakovo, in the Varna region, which have an annual capacity of 7,000 tons. The cost of the project is EUR 15 mln.
Source: Dnevnik (16.10.2006)

Fertiliser plant Neochim said profit fell almost 4 times to 2.651 mln levs in Jan-Sept mainly as a result of higher natural gas prices. The gas bills of the company rose to 76.4 mln levs versus 73.12 mln levs a year earlier. Operating costs were flat at 130 mln levs. Sales fell 7.4% to 122.92 mln levs. Sales abroad were reported at 70.285 mln levs.
Source: Dnevnik (31.10.2006)