November 14 (SeeNews) - Bulgarian fuel retailer Petrol [BUL:5PET] said on Wednesday that its shareholders approved a proposal to decrease the company's registered capital to 27.3 million levs ($16 million/14 million euro) from 109.2 million levs by cutting the nominal value of its shares to 1 lev from 4 levs.
The capital decrease needs to be carried out in order to cover accumulated losses, Petrol said in a bourse filing.
Last year, Petrol carried out a reverse stock split, merging every four existing shares with a nominal value of 1 lev each into one new share with a nominal value of 4 levs. As a result, the company's capital was divided into 27.3 million shares, compared to 109.2 million shares previously.
Petrol ended the first six months of 2018 with a consolidated net profit of 55.2 million levs, however, this was mainly a result of the sale of the company's unit Elit Petrol in March. The price of the transaction was not disclosed, but figures from Petrol's interim report show the company gained 54.6 million levs from operations with financial assets in January-June.
At the end of June, Petrol had 162.3 million levs of accumulated losses from previous periods, not taking into account the 55.2 million levs net profit in January-June of this year, according to data from its first-half financial statement.
Petrol shares last traded on the Bulgarian Stock Exchange at a price of 1.0 levs apiece.
Petrol operates over 330 fuel stations in Bulgaria.
(1 euro = 1.95583 levs)