Neochim JSC Neochim was set up as a chemical plant in 1951. The enterprise was privatised in June 2000, when 51% of the capital was acquired by a consortium between Eurofert and Karifert International. Neochim has six subsidiaries dealing with support activities, such as trade, security, publishing, design, engineering etc. Capital The capital of the company is distributed in 2,654,358 shares with a par value of BGN 1 each. Eurofert holds 49.17% of the capital, followed by Karifert International (17.16%), Agrofer International (7.68%) and Albena Invest Holding (6.38%). It should be noted that Neochim buys back its own shares and 1.43% of the capital has been repurchased so far. Nearly 15,000 shares were bought back in 2006 alone. Markets Neochim is leader in Bulgaria in production of formalin, urea-formaldehyde resins, sodium nitrate, sodium nitrite, ammonium bicarbonate, liquefied sulphur dioxide, nitrous oxide, polyethylene oxide etc. The bulk of output is exported to the EU, the USA, Latin America etc. The company's exports increased in the past few years in terms of volume and as a relative share of sales and accounted for 60 to 70% of the total sales. The trend changed in 2006, when exports dropped by 21.58% and their relative share shrunk to 53.47% of the total sales. That was due to a decrease in the volume of orders from Brazil and the USA, which accounted for the bulk of sales in 2005, as well as to the lower international prices and the poorer demand for the company's fertilisers. To a great extent the rise in domestic sales by 30.96% offset the loss of foreign markets, so that the total decrease in sales was just 3.58%. Competitors Neochim's profitability is closely related to the price of natural gas. The fuel accounts for 78-79% of the company's material expenses. The new agreement on natural gas supply between Bulgaria and Russia's Gazprom will raise the prices close to market levels, which will affect the competitiveness of Neochim's products. The company's main competitor on the Bulgaria market is Agropolichim. SWOT Strengths * Bulgaria's only producer of ammonium nitrate etc. * Bulgaria's EU entry will boost the products' competitiveness on the European market * Good technological equipment * Stable positions on the international markets * Well developed distribution channels * Stable financial condition Weaknesses * The company will have to make considerable investments in order to comply with EU's environmental requirements * Strong dependence on natural gas prices * Seasonal character of sales * High fixed expenses on production equipment maintenance Opportunities * Increasing sales in the EU * Higher domestic consumption of fertilisers due to the expected rapid development of the agriculture sector * Maximum utilisation of production capacities * Optimisation of costs except for those related to natural gas Threats * Inability to comply with EU's environmental standards
Source: Pari (16.01.2007)

Two foreign investment banks have spoken with the Bulgarian stock exchange (BSE) in connection with plans to offer financial instruments based on the local blue chip index, SOFIX. The Bulgarian bourse withheld the names of the banks at their request. The BSE said the banks in question intend to style their products after the SOFIX-based open-end certificate launched recently by ABN AMRO. The market fortunes of 8 Bulgarian stocks - Sopharma, DZI, Bulgartabac, Albena, Orgachim, Neochim, CCBank and Biovet, are tracked by an Erste Bank certificate. The BSE specified the 2 banks mulling SOFIX derivatives are not among the 27 non-native investment outfits that have notified the Bulgarian financial regulator of plans to enter the local market. Dnevnik found that the notifications from some of the interested companies, including Morgan Stanley, Panmure Gordon&Co. and Numis Securities Ltd., were filed as a matter of routine and they do not intend to start marketing their products immediately.
Source: Dnevnik (14.02.2007)

One of Bulgaria's biggest fertiliser makers, Neochim, will invest nearly BGN 18 million in new facilities in 2007. The company will carry out a project for intensification of ammonium nitrate production, which has to be finalised before the existing line is closed at the end of the year, Neochim's executive director, Dimitar Dimitrov, said in an interview for the Pari daily. The reconstruction will raise the company's output by 30% and improve the quality of the product. Neochim also plans to invest a considerable amount in production management. The first stage of the project is the automation of ammonia production. Meetings have been held already with leading companies for design, delivery and implementation of such systems. The investment is estimated at some BGN 10 million.
Source: Pari (28.03.2007)

Bulgarian chemical manufacturer Neochim, which is 28th in market capitalisation on the Bulgarian Stock Exchange, posted a BGN 10 million drop in profit to BGN 3.58 million for 2006. The financial result decreased fourfold from BGN 13.5 million for 2005, mainly due to the rapid increase in natural gas prices. Neochim spent BGN 108.24 million on fuel last year, compared with BGN 99.6 million in 2005. That affected the company's material costs, which went up to BGN 136.8 million. Sales revenue declined by BGN 8 million to BGN 166 million, down from BGN 174.9 million a year earlier. Nevertheless, the company's cash resources amounted to BGN 7.45 million at the end of 2006, which shows it has sufficient reserves.
Source: Pari (10.04.2007)

An upcoming general meeting of shareholders of Dimitrovgrad-based fertiliser maker Neochim will vote on a proposal to redeem 3% of the company's capital. The minimum repurchase price for the targeted 79,630 shares is 30 levs with the maximum price at 40 levs. The company has performed buybacks in each of the last 3 years. The last operation could cost the fertiliser maker between 2.38 mln and 3.18 mln levs.
Source: Dnevnik (13.04.2007)

Neochim is the leading chemical stock listed on the Bulgarian Stock Exchange (BSE). Neochim posted BGN 181.5 million operating revenue in 2006. The company also has BGN 76.8 million equity capital and BGN 116.446 market capitalisation. The profit of the company, however, declined by BGN 10 million in 2006, compared to 2005. Neochim's market capitalisation has grown by only 18% on an annual basis, which is the lowest figure among the chemical stocks on BSE. Neochim's stock price depreciated by 3.87% to BGN 43.26 per share during BSE's session on Thursday. Orgachim's stock price in turn has appreciated by 153% to BGN 191 per share over the last three months and a half. The market capitalisation of Rousse based Orgachim rose to nearly BGN 95 million, which is just BGN 24 million less compared to Neochim's.
Source: Pari (20.04.2007)

The chemical industry is among the fastest developing sectors on the Bulgarian Stock Exchange (BSE). The sector also has great potential. The chemical sector ranked fourth among all sectors on BSE in terms of turnover in 2006. A total of 32,400 deals for BGN 213.7 million were sealed in in chemical stocks on BSE in 2006. The seven representatives of the chemical industry include Neochim, Orgachim, Polimeri, Kauchuk, Vidachim, Rozachim and Chimco. The combined market capitalisation of the seven companies amounts to BGN 350.3 million, accounting for 2% of BSE's market capitalisation. At the same time their combined sales totalled BGN 388.6 million in 2006. The companies also have a great potential to grow judging from their investment programmes. Polimeri's future plans envisage EUR 180 million investments aimed mainly in securing raw materials and energy efficiency. One of the major issue in the sector is whether Vratsa-based Chimco, which was once the largest chemical plant in Bulgaria, will launch operations again. The stock price of the plant, which is plagued by insolvency procedures and court cases, goes up at even the slightest indication that the plant may start operations. Then subsequently returns to down to its usual levels. The increasing price of natural gas, which is a problem for all chemical plants, affected negatively Neochim's performance. The company's 2006 profit declined by BGN 10 million from the BGN 13.3 million profit netted in 2005.
Source: Pari (20.04.2007)

The chemical industry is among the fastest developing sectors on the Bulgarian Stock Exchange (BSE). The sector also has great potential. The chemical sector ranked fourth among all sectors on BSE in terms of turnover in 2006. A total of 32,400 deals for BGN 213.7 million were sealed in in chemical stocks on BSE in 2006. The seven representatives of the chemical industry include Neochim, Orgachim, Polimeri, Kauchuk, Vidachim, Rozachim and Chimco. The combined market capitalisation of the seven companies amounts to BGN 350.3 million, accounting for 2% of BSE's market capitalisation. At the same time their combined sales totalled BGN 388.6 million in 2006. The companies also have a great potential to grow judging from their investment programmes. Polimeri's future plans envisage EUR 180 million investments aimed mainly in securing raw materials and energy efficiency. One of the major issue in the sector is whether Vratsa-based Chimco, which was once the largest chemical plant in Bulgaria, will launch operations again. The stock price of the plant, which is plagued by insolvency procedures and court cases, goes up at even the slightest indication that the plant may start operations. Then subsequently returns to down to its usual levels. The increasing price of natural gas, which is a problem for all chemical plants, affected negatively Neochim's performance. The company's 2006 profit declined by BGN 10 million from the BGN 13.3 million profit netted in 2005.
Source: Pari (20.04.2007)

Neochim is the leading chemical stock listed on the Bulgarian Stock Exchange (BSE). Neochim posted BGN 181.5 million operating revenue in 2006. The company also has BGN 76.8 million equity capital and BGN 116.446 market capitalisation. The profit of the company, however, declined by BGN 10 million in 2006, compared to 2005. Neochim's market capitalisation has grown by only 18% on an annual basis, which is the lowest figure among the chemical stocks on BSE. Neochim's stock price depreciated by 3.87% to BGN 43.26 per share during BSE's session on Thursday. Orgachim's stock price in turn has appreciated by 153% to BGN 191 per share over the last three months and a half. The market capitalisation of Rousse based Orgachim rose to nearly BGN 95 million, which is just BGN 24 million less compared to Neochim's.
Source: Pari (20.04.2007)

Belgian-US concern Hamon enters Bulgaria Belgian-US concern Hamon set foot on the Bulgarian market after signing a strategic partnership contract with ProStream Group. The two companies will offer technologies for air pollution control in Bulgaria. Hamon's technologies will reduce considerably the harmful gas emissions of thermal power plants (TPP) operating on coal, according to Kristiyan Georgiev, manager at ProStream Group. The new technologies may also be used in the steel, cement and glass industries, as well as in refineries and mines. The ones that most urgently need to introduce these new technologies are the TPPs in Rousse, Varna and Bobovdol. Talks with potential clients will be launched in 2007, while the first projects will be implemented in 2008, according to Miladin Boyadjiev, manager of ProStream Group. ProStream Group posted BGN 14 million revenue in 2006. The company implemented successfully environmental equipment projects at LUKoil, Maritsa-Iztok, Solvay-Sodi, Agropolychim, Neochim etc.
Source: Pari (30.05.2007)

Fertiliser maker Neochim netted BGN 6.5 million profit for the first quarter of 2007, up 40% year on year. The net sales revenue of the company amounted to BGN 75.177 million for the first three months of 2007, up from the BGN 66.838 million generated a year earlier. The increase in net profit may be put down mainly to the rising core business revenue, which totalled BGN 75 million in the first quarter of 2007. Neochim's business expenses totalled BGN 68.253 million in the first quarter of 2007, up from BGN 61.797 million a year earlier. The increase may be attributed to the material costs, which rose from BGN 47.501 million to BGN 53.886 million. Neochim will invest nearly BGN 18 million in 2007, Dimitar Dimitrov, executive director of the company, said. The company invested some BGN 3 million in long-term tangible assets in the first quarter of 2007. Despite the strong performance, Neochim's stock depreciated by 1.4% to BGN 46.34 per share during Wednesday's trade on the Bulgarian Stock Exchange (BSE).
Source: Pari (31.05.2007)

Only five of the 16 companies included in the calculation of the Sofix blue-chip index of the Bulgarian Stock Exchange (BSE) will pay dividends in 2007. The Bulgarian American Credit Bank (BACB), the Bulgarian Telecommunications Company (BTC), M+S Hydraulic, Petrol and Sopharma have decided to distribute dividend. The shareholders of BTC will decide next week how much of the company's BGN 283 million profit for 2006 will be distributed as dividend. Sopharma's board of directors decided to distribute BGN 13.2 million of the company's BGN 22.034 million profit for 2006 as dividend. Sopharma's capital is distributed in 132 million shares, which means that the gross dividend per share will stand at BGN 0.1. The general shareholders' meeting is scheduled for June 26. The shareholders of M+S Hydraulic have already decided to allocate 1.12 million or 34% of the company's profit for 2006 for dividend distribution. The shareholders will be paid BGN 0.08 dividend per share. Dividend will be paid between August 17 and November 16 through the Central Depositary and International Asset Bank. BACB will pay BGN 0.75 gross dividend per share to its shareholders. A total BGN 9,468,543 of BACB's BGN 33.686 million profit for 2006 will be distributed as dividend. Payments started on may 31. Petrol's general shareholders' meeting was held on Monday. The shareholders had to decide whether 50% of the BGN 16.853 million profit should be allocated for dividend distribution. The company did not disclose information on the decisions taken at the meeting. The remaining eleven companies within the Sofix will reinvest their 2006 profit, a survey of the Pari daily shows.
Source: Pari (12.06.2007)

Dimitrovgrad-based fertiliser plant Neochim has shareholder approval to pay a dividend of BGN 0.20 per share for '06, the company said in a filing with the Bulgarian Stock Exchange. The company will also redeem 3 per cent of shares sold to investors at prices between BGN 40 and BGN 44 per share. The shareholders also decided that BGN 3 mln from Neochim's profits should be allocated to the additional reserves.The shareholders of fuel retailer Petrol have approved dividend payment of BGN 0.0771 per share for '06, the company said in a filing with the Bulgarian bourse. The company will transfer BGN 8.1 mln to reserves and book BGN 327,233 as retained earnings. The shareholders have also okayed the sale of Petrol's stake in New-Co Zagora for BGN 9.375 mln to parent company Petrol Holding.
Source: Dnevnik (13.06.2007)

Neochim JSC - Dimitrovgrad, Bourse code NEOH, the annual general meeting of which was held on June 8, 2007, will distribute gross dividend for the year 2006 to the amount of BGN 0.20 (net dividend – BGN 0.186). Neochim JSC - Dimitrovgrad reported a profit for 2006 in the amount of BGN 3,573,000. The company shall allocate BGN 3,045,891.52 as Additional Reserves.
Source: Capital market (14.06.2007)

Polish fertiliser maker Pulawy is planning to buy about a dozen petrochemical companies abroad, including a couple of unnamed acquisition targets in Bulgaria, managing board chairman Krzysztof Lewicki tells Polish publication Parkiet. The company executive said Pulawy is eyeing one company each in Germany and Slovakia, 4 in Romania, 2 in Bulgaria and another 2 in the Balkan region. The Polish company declined to give further details, saying the acquisition plans are still taking shape.
Source: Dnevnik (25.06.2007)

Fertiliser maker Neochim posted BGN 6.5 million profit for the first quarter of 2007, up 43% year on year. The strong result shows an upward trend in Neochim's performance, which posted BGN 3.241 million profit for 2006, a nearly fourfold year on year decrease. Euro Fert is a major shareholder in Neochim with a 49-percent stake. Lebanese Karimex Chemicals International Sal and Albena Invest Holding own 16% and 4% in the fertiliser maker, respectively. A total of 567 shares in Neochim were traded on the Bulgarian Stock Exchange (BSE) on Friday. The stock appreciated by 1.45% to BGN 48.99 per share. The stock has added 7.77% to its value over the last year.
Source: Pari (02.07.2007)

Kaolin, Sparky Eltos and Euro Ins are the three new companies included in the blue-chip index of the Bulgarian Stock Exchange (BSE), Sofix. The changes were approved by BSE's management on Wednesday, September 5. Biovet and DZI insurance company were excluded from the blue-chip team. The Bulgarian Telecommunications Company (BTC) remains part of Sofix for the time being, though its new majority owner has announced plans to delist the company from the public register. After the changes, the number of companies in the index is now 17. These include Albena, BTC, Elana Agricultural Land Opportunity Fund, Industrial Holding Bulgaria, M+S Hydraulic, Monbat, Neochim, Orgachim, Petrol, Sopharma, Bulgarian-American Credit Bank, Central Cooperative Bank, Toplivo, Chimimport and the three new companies. On Wednesday, which was the last business day last week, Sparky Eltos closed at BGN 18.01 per share, up by 0.45%. Euro Ins rose by 0.46%, reaching BGN 17.37. But Kaolin's shares cheapened by 6.30%, closing the week at BGN 15.16.
Source: Pari (10.09.2007)

Albena Invest Holding (Albena IH) posted BGN 1.43 million consolidated profit for the first half of 2007, a decrease compared to the BGN 2.13 million profit booked for the year-ago period. The sales revenue of the company went down from BGN 12.39 million in the first quarter of 2006 to BGN 7.9 million a year later. Albena Invest Holding's non-consolidated profit went up to BGN 1.49 million for the first six months of 2007. The decrease in consolidated profit may be put down to the sale of Torgoterm AD in 2006. The proceedings from the sale, however, have been reinvested, Albena Invest Holding said. The holding company also plans to establish two new companies specialising in real estate. The value of Albena Invest Holding's consolidated assets totalled BGN 137.11 million for the first half of 2007, up from BGN 133.33 million for the year-ago period. The increase may be put down to the fixed assets of the company, which went up from BGN 19.14 million to BGN 23.12 million. The consolidated equity capital of Albena Invest Holding also went up from BGN 114.33 million to BGN 115.21 million. Albena Invest Holding's stock appreciated by 4.26% to an average of BGN 20.54 per share on Thursday. Thus the market capitalisation of the company amounts to nearly BGN 113 million.
Source: Pari (14.09.2007)

Petrol is the local champion The biggest Bulgarian companies reported revenues of BGN 3.65 bln Petrol JSC - Sofia is the local leader by revenues among the Bulgarian companies, showed the H1 reports of the public companies. Bulgaria’s biggest fuel distributor generated BGN 565 mln for the first six months, reporting a drop of 13% y/y. Company’s revenues exceed its market capitalization totaling BGN 502 mln. Second ranks BTC, generating slightly less revenues of BGN 502 mln. The growth compared to June 2006 is just 0.1%. The top three includes also Chimimport reporting BGN 373 mln. The growth here, however is record-high – over 120 percent. Very soon the company will become the local top one by capitalization after the former leader BTC is delisted from trade. The top 20 public companies reporting the highest revenues have collected a total of over BGN 3.65 bln, the rating prepared by profit.bg revealed. Kremikovtzi, Bulgartabac, Sopharma, Synergon Holding, First Investment Bank, Alcomet, and Neochim also ranked among the top 10. Besides Petrol, the only one company reporting revenues reduction is Kremikovtzi. The metallurgy plant reported BGN 363 mln, which is 22% less than the results in 2006. The second decade includes Toplivo, OTsK, DZI, Blagoevgrad BT, Bulstrad, Drujba Glass Works, Eurohold, Doverie - United Holding, Kaolin, and Orgachim.
Source: Standart (14.09.2007)

The net profit of Bulgaria's Neochim for the first nine months of 2007 dropped 1.4-fold. The financial result of the fertiliser maker stood at BGN 752,000 at the end of September, down from BGN 1.9 billion for the year-ago period. The company's equity capital remained unchanged at BGN 2.6 million. One of the reasons for the lower profit was the slight rise in business expenses to BGN 143.8 million. Neochim's net sales increased from BGN 132.2 million to BGN 147 million but its financial revenue slumped to BGN 334,000, compared with BGN 683,000 for the corresponding period in 2006. The main shareholders in the company are Euro Fert (49%) and Karimex Chemicals International Sal (16%). Albena Invest holds 4% of the capital. On Wednesday, the shares of the company lost 6.8% of their price on the Bulgarian Stock Exchange and traded at an average of BGN 90.2.
Source: Pari (31.10.2007)

Packaging waste recycling company Ecobulpack will float a bond issue. The decision will be taken at a general shareholders' meeting scheduled for December 6, 2007. The company refused to disclose additional information on the issue, as well as what the proceedings from the issue will be used for. The bonds will not be listed for secondary trade on the Bulgarian Stock Exchange (BSE). The issue will be offered to less that 100 individuals. If there is lack of quorum, the meeting will be rescheduled for December 21. Ecobulpack has more than 120 shareholder companies, including Sopharma, Aroma, Domaine Boyar, Druzhba Glass Works, Zaharni Zavodi of Gorna Oryahovitsa, Lomsko Pivo and Neochim.
Source: Pari (05.11.2007)

A new plant for mixed fertilizers N:P:K was officially opened by Neochim JSC – Dimitrovgrad. Approximately BGN 1,500 mln were invested by the company in the new production line. The technology allows to change the proportion of Sodium, Phosphorus and Potassium in wide limits in correlation with the soil and crops specificity, including the add of microelements. The line has a capacity of 20 tones of blend per hour.
Source: Darik Radio (05.11.2007)

The net consolidated profit of Bulgaria's Neochim for the first nine months of 2007 decreased by 42%, year on year, the holding's report shows. The profit amounted to BGN 1.5 million at the end of September, down from BGN 2.6 million a year earlier. The lower financial result was mainly due to the BGN 12 million rise in operating expenses to BGN 148.7 million. Business expenses increased by BGN 11.8 million, reaching BGN 146.8 million for the nine-month period. Neochim's net sales jumped by BGN 11.3 million to BGN 149.7 million at the end of September. The main shareholders in the chemical company are Euro Fert (49.27%), Karifert International of Lebanon (17.16%) and Chimimport (3.66%).
Source: Pari (06.12.2007)