SOFIA - Bulgarian energy company Petrol AD (BUL:5PET) reported a turnaround to profit in the third quarter of 2024, with a net profit of 2.9 million Bulgarian lev (BGN), compared to a loss of 5.1 million BGN in the same period last year. The results, based on a press release statement, mark a significant recovery after the company faced challenges in the previous year.
The company, which trades in petrol products, non-oil products, merchandise, and services, saw its revenue decrease to 386.1 million BGN from 436.3 million BGN year-over-year. Despite the drop in revenue, cost-cutting measures contributed to the improved bottom line. Cost of goods sold was reduced from 392.1 million BGN to 335.2 million BGN, and other expenses were trimmed down as well.
Finance income for the period rose to 7.4 million BGN, up from 1.8 million BGN a year earlier, which also played a role in the company's return to profitability. However, finance costs increased to nearly 15 million BGN from 4.4 million BGN, reflecting higher interest expenses.
Total (EPA:TTEF) equity attributable to the owners of the parent company increased marginally to 25.8 million BGN, up from 22.9 million BGN at the end of the previous year. The company's total assets grew to 354.1 million BGN from 328.7 million BGN.
Petrol AD's interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU and are presented under the historical cost convention, except for certain assets and liabilities which are reported at fair value.
The company's financial position shows a mix of long-term and short-term borrowings, with loans and borrowings totaling 258.5 million BGN, including 24.4 million BGN of current liabilities. Petrol AD also reported cash and cash equivalents of 2.5 million BGN as of September 30, 2024.
The press release also detailed other financial activities, including cash flows from operating, investing, and financing activities, and noted important events such as the restructuring of debt and the acquisition of subsidiaries owning petrol stations.
Petrol AD's interim financial report reflects the challenges and strategic efforts to improve its financial health amid a dynamic economic environment. The company's ability to navigate market risks, commodity price volatility, and regulatory changes will continue to be crucial for its performance in the remaining financial year.
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