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Bulgaria’s Petrol plans to reduce capital to cover losses

February 24 (SeeNews) – Bulgarian fuel retailer Petrol [BUL:PET] said on Friday that it plans to decrease its equity capital to 27.3 million levs ($14.7 million/13.95 million euro) from 109.25 million levs by slashing the nominal value of its shares, in order to cover losses.

Petrol shareholders will vote on the plan at an extraordinary general meeting scheduled on March 29, the company said in a bourse filing.

If the proposal is approved, the par value of Petrol’s shares will be cut to 1 lev apiece from 4 levs.

As a result of the operation, Petrol’s registered capital would decrease to the level of the company’s net assets, which will allow the company to meet legal requirements and continue its operations.

Basically, the company will decrease both its registered capital and its accrued losses by 81.94 million levs. The measure will not affect net assets, it said.

Petrol, which operates over 300 filling stations in Bulgaria, reported at the end of January a non-consolidated net profit of 13.45 million levs for 2022 after a loss of 21.53 million levs in 2021.

As at CET 1526 on Friday, shares in Petrol traded flat at 0.21 levs on the Bulgarian Stock Exchange.

Source: See News