Ad-hoc Report - The decision of the Board of Directors of Petrom from November 8, 2005, regarding the capital restructuring
In compliance with Law nr. 297/2004 and Regulation no. 13/2004 of CNVM
Date of report : November 9, 2005
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: 5,600,050,607.8 RON
Regulated market on which the issued shares are traded : Bucharest Stock Exchange
Significant event to be reported:
The decision of the Board of Directors of Petrom from November 8, 2005, regarding the capital restructuring
November 9, 2005
Petrom informs that in its Board of Directors meeting held on November 8, a restructuring from the accounting standpoint of the equity was approved, resulting in an improved and fair view of the balance sheet and, in particular, in more transparency of the equity position of the company.
The loss carry forward (RON 3,048,665,900) will be decreased to the maximum extent possible by set-off with the revaluation reserve (RON 697,898,500) and the share premium account (RON 2,060,096,384). The remaining loss carry forward after giving effect to the above-mentioned set-off will amount to RON 290,670,016.
This measure will be reflected in 2005 audited financial statements, which will be submitted for approval to the General Meeting of Shareholders within the legal timeframe.
This restructuring has the future added benefit that it places the company in stronger position to recommence the payment of dividends to its shareholders at an earlier stage.