Financial news

According to preliminary data in April 2010 the index of industrial production increased by 0.2% over the same month of 2009. Compared to March 2010 it was registered a decline by 6.4 percent, announced the National Statistical Institute (NSI). In the production and distribution of electricity, heat and gas it was reported an increase of 1.9 percent yoy, growth in manufacturing is 0.4 percent, while in mining the output declined by 5 percent. It was registered a growth in manufacturing of products for intermediate consumption (5.0%), in the production of investment products (4.9%) and in the production of energy products (0.9%). The comparison with the previous month shows a drop in energy by 16.6%, in the mining industry - by 10.3% and in manufacturing - by 2.8%.

The National Statistical Institute (NSI) registered a 22.7% drop in construction in April in Bulgaria in comparison with the same month last year, the institute’s preliminary data reveals. The fall in the construction of buildings is 32.3%, while in civil engineering the decrease is 3.7%, which makes it evident that construction entrepreneurs focus on infrastructure-related facilities. In April 2010 construction fell by 1.2% compared with the previous month.

The State Energy and Water Regulatory Commission Public will discuss the price of electricity and heating energy today. According to recent estimates reported by the Regulatory Commission current increase It was expected Bulgargaz to announce its proposal for gas price as of July 1. This happened yesterday, but growth in the price of the blue fuel, which the gas company requested was 24%. What increase will approve the Regulatory Commission and how it will affect the price of heating energy will become clear today.

	Mineral Fuels, Tailoring Products, Canning, Perfumery and Cosmetics, Furniture, Meat Products, Wine, Wood-processing Industry

Concessions

Greek company Aktor, which won a contract to build a section of Bulgaria’s Trakia motorway linking Nova Zagora and Yambol, is interested in concessions of roads and inert matter deposit fields in Bulgaria. Aktor will hire no subcontractors for the Trakia project as it monitors on a daily basis building works on the site, a process that will be easier to implement going solo. The Greek company plans to add 1,000 people to its current Bulgarian headcount of 900 to back Trakia. Aktor pitched an offer to build the highway for EUR 1.9 million per kilometer, compared with EUR 2.2 million offered by tie-in Trace Motorways, which won the previous tender.

Companies

A new chocolate factory in Veliko Tarnovo will be constructed. The factory of the company Karmela will start working in September and will create new jobs. In the area of the old radio factory the company has invested more than BGN 2,5 million to build its new complex, the manager Sonya Stoyanova said. The building permit for the facility was issued on May 27 this year and it has already been working actively in order to finish the factory as soon as possible. The new production building of Karmela will be on three floors and 2 922 square meters total floor area. To implement the investment Karmela have used its own land, to which another private property was joined.

Sanitary products maker Septona Bulgaria will be delisted from the Bulgarian Stock Exchange (BSE), the company said in a statement. The move will come after a buyout offer that majority owner Septona Greece plans to register in September. Septona Bulgaria carried out a secondary offering on the Bulgarian bourse in early 2008. However, the company has failed to lure any investors thanks to a low free float. Septona recently augmented its capital from BGN 1.2 million to BGN 2.6 million, raising upwards of BGN 7.2 million from shareholders.

The Financial Supervision Commission (FSC) has for the second time in a row imposed a temporary ban on the tender offer for Orgachim’s shares. During its sessin yesterday, FSC also confirmed the prospectus for the public sale of stocks from Cibank’s capital increase. The issue runs up to BGN 78, 233, 180, distributed in 965, 365 units with par value of BGN 10 each.

Pazari-Veliko Tarnovo LTD, in which the municipality holds a 49-percent stake, is once again the most profitable company. The annual report and achieved financial results of companies in which the Municipality of Veliko Turnovo is a partner, states that Pazari-Veliko Tarnovo has achieved the largest profit. For the last year the company, in which the majority stake is held by Magro Market M, reported positive financial result of BGN 534 thous after taxes. The Municipality of Veliko Tarnovo is a partner in 10 companies. After the privatization of municipal shares in VTO Multicom JSC and the deletion of Stara Planina - in liquidation, eight partnerships remain. MBAL Dr. Stefan Cherkezov, in which the municipality has 17 per cent, last year reported a loss of BGN 17 thousand. Football Club Etar - 1924 reported a loss of BGN 100 thous.

At the energy forum near Varna, at the Bulgarian Black Sea coast, after the presentation of Emil Tomov from Risk Engineering, it emerged that Kozloduy NPP may be allowed to function till 2049. The fifth and fourth units of the nuclear power plant are licensed to operate till 2017 and 2019. After this time, however, the NPP is very likely to ask the Nuclear Regulatory Agency for licence extension. If the extension is for 15 years, the two units will work till 2032 and 2034. After the expiry the licensing could be theoretically prolonged for other 15 years. The licence extension, especially for the first 15 years, will hardly be a problem as long as Kozloduy proves the units are safe, according to experts from the sector.

Europe

British Airways' chief executive Willie Walsh has turned down a six-figure bonus for the second year as the carrier struggles with losses and a series of strikes by cabin crew. The airline said in its annual report published that Walsh was eligible for bonus in the form of shares worth 334,000 pounds but he thought it was appropriate to say no. Walsh also gave up a month's pay last year, cutting his annual compensation to 674,000 pounds. "I regret that we found ourselves at loggerheads with very valued members of staff at a critical time," Walsh said in the report. The British Airlines Stewards and Stewardesses Association as called walkouts totalling 22 days since March, costing the airline 150 million pounds, and negotiations have made no apparent progress in resolving the dispute.

Asia

Carlsberg has agreed to spend $379m to become the leading shareholder in a top Chinese brewer, marking the latest western investment in one of the world’s fastest-growing beer markets. The Danish group said that it would lift its stake in Chongqing Brewery, a Shanghai-listed brewer, from 17.5 per cent to 29.7 per cent. The 12.5 per cent stake was being sold by the Chinese brewer’s state-owned parent, which will retain a 20 per cent stake in the listed company if the deal secures regulatory approval. The divestment attracted interest from global beer groups including Anheuser-Busch InBev and a mainland venture in which SABMiller owns a near-half stake.

St. Toma Island

The St. Toma island is situated in the Black Sea gulf of Alepu, very close to the shore. It is named after St. Toma, because there was a small chapel bearing the name of the saint built on the territory of the island. Its area is 10 decares and is known to be the only place in Bulgaria, where wild cactuses grow. They were planted here some 60 years ago and have amazingly adapted to local conditions. The cactuses themselves are home to many birds. The island is also known for its many snakes, that’s why many call it the Snake Island. A part of the island is the Oil Cape, which is the farthest eastern part of the Strandja mountain and the third biggest cape in the Bulgarian Black Sea coastal area. Its steep slopes make it extremely hard to access. In the past, it had a bad fame of being a place, where many ships crushed. Since most of them were loaded with olive oil, the place was called the Oil Cape, and during the Turkish Yoke – Zeytun Borun (the same meaning in Turkish). Legends say that at that time, secret tunnels connected the Oil Cape and the fortress of Valchan Voyvoda. According to these legends, many pirate treasures were buried on the island.

On that day:  Matochina Fortress