Home » News » Kaolin AD’s profit for the first half of year 2007 has exceeded the result for the entire past year
Kaolin AD’s profit for the first half of year 2007 has exceeded the result for the entire past year
For the first half of year 2007 Kaolin AD’s profit before tax has increased by 2.2 times, where from BGN 5.5 mln. as of June 30, 2006, it has reached BGN 12.1 mln. The result presented is prior to consolidation of financial data received from subsidiaries.
For the first half of year 2007, the Company’s non-consolidated revenues from activities increased by 37% and reached nearly BGN 51 mln., compared to BGN 37.2 mln. for the same period last year. The increase in sales resulted from the increased sales in the construction, glass, sanitary ceramics sectors, as well as of limestone for sulphur purifying facilities.
The extraordinary income amounting to BGN 2 mln., which the Company has realized after gaining the suit at law on refunding the deposit for participating in the privatization of Bulgarian River Shipping AD has contribution to the financial result reported. The amount was held back by the Privatization Agency in 2005, following Kaolin AD’s non-renewal of its offer to participate in the privatization procedure of the river fleet. Even after subtracting the extraordinary income above, the Company’s financial result exceeded BGN 10 mln., which is more than the operating result for the entire past year.
On July 6, 2007 Kaolin AD held its first annual General Meeting of the Shareholders as a public company, after completing in the month of May this year the procedure on share capital increase with an initial public offering. The Company’s Shareholders voted against distribution of dividend for the financial 2006 and to capitalize the entire net profit to the amount of BGN 8,912 thousand. The said decision is completely in unison with Kaolin AD’s strategy to accumulate sufficient own financial resource in order to fulfill its large-scale investment programme, including the expansion currently being realized in the South East Europe Region.
In the process of implementation of the strategy specified above, at the end of the first half of this year, the acquisition of 51% of the shares of the Ukrainian company PKSP ООО was finalized.
PKSP ООО is the second largest producer of silica sands in the Ukraine and mainly supplies the glass and construction industry in the Ukraine. PKSP ООО’s turnover for the financial 2006 is nearly EUR 3 mln., where the profit before tax exceeded EUR 450 thousand. After acquiring the control package of PKSP ООО’s shares, increase in the company’s share capital is to be performed, the funds from which are to be used to finance the construction of a processing plant for enrichment of the silica sand.
During the past year, through its subsidiary Kaolin Azov, Kaolin AD was awarded the licence to exploit the silica sands deposit “Buryakovskoe”, which is located in Zaporozhye Region. During the present year, the exploitation of a mine is to commence on the said deposit, which is to satisfy the market needs in South and East Ukraine. In the same area, Kaolin AD has also started the exploitation of a high-quality kaolin raw materials deposit – “Pervozvanovskoe”.
In June this year, Kaolin AD was selected to be supplier of limestone for the sulphur purification installation of “Maritza East 2” Thermal Power Plant under a contract having a 5-year implementation period, to a total amount of EUR 10.4 mln. Thus the Company has extended its market share in the raw materials sector related to the protection of the environment.
In this sector, the Company intends to continue investing in the opening of new deposits and the increase of the production capacities.
Currently, the Company operates more than 30 deposits of industrial minerals and 10 processing capacities in Bulgaria, Serbia and the Ukraine. The staff of the Company exceeds 1,400 employees.
At present, the Company is implementing serious in terms of volume investments connected with automation of the production activities, enhancement of the energy efficiency and development of new product lines.
For the first half of year 2007, the Company’s non-consolidated revenues from activities increased by 37% and reached nearly BGN 51 mln., compared to BGN 37.2 mln. for the same period last year. The increase in sales resulted from the increased sales in the construction, glass, sanitary ceramics sectors, as well as of limestone for sulphur purifying facilities.
The extraordinary income amounting to BGN 2 mln., which the Company has realized after gaining the suit at law on refunding the deposit for participating in the privatization of Bulgarian River Shipping AD has contribution to the financial result reported. The amount was held back by the Privatization Agency in 2005, following Kaolin AD’s non-renewal of its offer to participate in the privatization procedure of the river fleet. Even after subtracting the extraordinary income above, the Company’s financial result exceeded BGN 10 mln., which is more than the operating result for the entire past year.
On July 6, 2007 Kaolin AD held its first annual General Meeting of the Shareholders as a public company, after completing in the month of May this year the procedure on share capital increase with an initial public offering. The Company’s Shareholders voted against distribution of dividend for the financial 2006 and to capitalize the entire net profit to the amount of BGN 8,912 thousand. The said decision is completely in unison with Kaolin AD’s strategy to accumulate sufficient own financial resource in order to fulfill its large-scale investment programme, including the expansion currently being realized in the South East Europe Region.
In the process of implementation of the strategy specified above, at the end of the first half of this year, the acquisition of 51% of the shares of the Ukrainian company PKSP ООО was finalized.
PKSP ООО is the second largest producer of silica sands in the Ukraine and mainly supplies the glass and construction industry in the Ukraine. PKSP ООО’s turnover for the financial 2006 is nearly EUR 3 mln., where the profit before tax exceeded EUR 450 thousand. After acquiring the control package of PKSP ООО’s shares, increase in the company’s share capital is to be performed, the funds from which are to be used to finance the construction of a processing plant for enrichment of the silica sand.
During the past year, through its subsidiary Kaolin Azov, Kaolin AD was awarded the licence to exploit the silica sands deposit “Buryakovskoe”, which is located in Zaporozhye Region. During the present year, the exploitation of a mine is to commence on the said deposit, which is to satisfy the market needs in South and East Ukraine. In the same area, Kaolin AD has also started the exploitation of a high-quality kaolin raw materials deposit – “Pervozvanovskoe”.
In June this year, Kaolin AD was selected to be supplier of limestone for the sulphur purification installation of “Maritza East 2” Thermal Power Plant under a contract having a 5-year implementation period, to a total amount of EUR 10.4 mln. Thus the Company has extended its market share in the raw materials sector related to the protection of the environment.
In this sector, the Company intends to continue investing in the opening of new deposits and the increase of the production capacities.
Currently, the Company operates more than 30 deposits of industrial minerals and 10 processing capacities in Bulgaria, Serbia and the Ukraine. The staff of the Company exceeds 1,400 employees.
At present, the Company is implementing serious in terms of volume investments connected with automation of the production activities, enhancement of the energy efficiency and development of new product lines.