Kaolin Ad

For the second quarter of 2009 Kaolin AD recorded consolidated revenues from sales amounting to BGN 31,250 thousand versus BGN 24,065 thousand for the first quarter of the year. The data of first half-year period show BGN 55,315 thousand versus BGN 66,684 thousand for 2008, i.e. the drop reaches 17 %.

On a consolidated basis, as of 30.06.2009, the company reported tinier drop in sales than an unconsolidated basis over the same period in 2008 (17 % versus 19 % for individual revenue). This is a result of both normalized production and commercial activity in Ukraine, accompanied with the upcoming completion of large-scale investments in the subsidiary company "PKSP" in Ukraine and the stable positioning of subsidiaries in Serbia.

Over the past quarter Solarpro PLC reported for the first time substantial contribution to the Group's revenues amounting to nearly 6 %. As a direct result thereof, the first phase of the photovoltaic plant of Solarpro in the village of Yankovo, Shumen district area, has been officially commissioned this week. The first phase of the project "North-East 1" features installed capacity of 338 kWp. The plant had been successfully acceded to the power grid of E. ON and delivers electricity to the electricity distribution company. The total capacity of the plant will be put into operation by the end of the year. The whole plant "North-East 1" has nominal power of 2404 kWp will be the largest photovoltaic park in the country.

On 29.06.2009, the capital of Solarpro was increased and Kaolin paid up the entire increase of BGN 12 million, thus making the capital of the subsidiary amount to BGN 24 million. At the end of March the first panels of the first production line of the photovoltaic plant in Silistra were produced.

The net financial result of the Group for the second quarter of 2009 records a profit of BGN 3,826 thousand versus BGN 178 thousand accountable for the first three months of the year.

 
Compared to the first half of 2008, the Group’s profit accounts for BGN 5,754 thousand marking a decrease of BGN 4,004 thousand as of 30.06.2009.

 
Both on an individual and consolidated base, EBITDA keeps at the same levels as in the previous period last year, and on a consolidated basis as of 30.06.2009 it records a slight growth (BGN 11,458 thousand versus BGN 11,372 thousand as of 30.06.2008).

The significant improvement in financial results for the second quarter result from the tight measures undertaken for optimization of the operational activities put in place as early as at the end of 2008, including reasonable redundancies, commissioning of new technological capacity, expanded product base and entering new markets.