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Bulgargaz reports 91M leva loss for 2008

Tue, Jun 30 2009 11:53 CET byNick Iliev 1010 Views
Bulgargaz reports 91M leva loss for 2008

Bulgargaz, the state-owned gas distribution firm, said that it posted a 91 million leva loss in 2008, as opposed to 87 million leva profit for 2007. The loss was reported despite a 29 per cent increase of annual turnover.

Revenue from natural gas retail rose by 27 per cent to 1.57 billion leva, but the company paid 1.81 billion leva to buy natural gas, 241 million leva more than it actually managed to sell on the domestic market.

Transit revenue figures stood at 140 million leva in 2008, an 8.42 increase as opposed to 2007, despite dwindling transit traffic as supplies to Greece fell by 9.44 per cent and a 1.62 per cent decline in supplies for Turkey.

But the main reason for the net loss were the debts owed by utility companies. At the end of 2008, Toplofikatsiya Sofia owed Bulgargaz 268 million leva, which has been covered partially since then. Bulgargaz is also due 9.5 million leva from Toplofikatsiya Pernik and 196 000 leva from Toplofikatsiya Shoumen. All three heating utility companies are currently state-owned.

Bulgargaz is owned by the Bulgarian Energy Holding, the catch-all holding structure set up by the Bulgarian government to consolidate state-owned assets in the energy sector.

Bulgargaz' equity fell to 342 million leva at the end of 2008, whereas short term debt rose to 356.2 million leva. The company has virtually no long-term debt.

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