Ad-hoc Report - Missing petroleum product quantities in the custody of Petrotrans and Conpet respectively
In compliance with Law nr. 297/2004 and Regulation no. 1/2006 of CNVM
Date of report : July 19, 2006
Name of issuer : PETROM S.A.
Headquarters : Bucharest, Calea Dorobantilor nr. 239 sector 1
Telephone/fax number : 021 4060101/021 4060436
Sole registration number at the Trade Register Office: 1590082
Fiscal attribute : R
Trade Register Number: J 40/8302/1997
Share capital: 5,664,410,833.5 RON
Regulated market on which the issued shares are traded : Bucharest Stock Exchange
Significant event to be reported:
Missing petroleum product quantities in the custody of Petrotrans and Conpet respectively
Petrom has used in the past for the transportation of its products through the pipelines the services of Petrotrans respectively for a period of time also Conpet when the product pipelines were under the patrimony of Conpet.
Both companies are majority owned by the Romanian State.
Petrom has determined that up to 54,500 tonnes of Petrom inventory was lost from the custody of Petrotrans respectively Conpet for which both companies were and are responsible. Petrotrans claims that a quantity of approximately 9,000 tonnes is still recoverable, but the actual recoverable quantity may be much lower.
In addition to the loss of product Petrom is also liable for the excise taxes and VAT on the lost quantities.
The overall damage to Petrom resulting from the loss of Product plus excise taxes and VAT due could amount up to 45 million Euros.
Petrom stopped the transportation of petroleum products through pipelines in August 2004 and ever since it has been using railway transportation as the main method for product shipping. Petrom therefore wants to reassure its investors that such significant product losses can be excluded for the future.
The appropriate provisions have been made in the results of the Company. Petrom will consider all legal steps available in order to recover the incurred damages.