Bulgaria's Petrol AD 2009 profits have shrunk by over 96%, the company's newly published annual report has revealed.

The fuel distributor recorded a profit of BGN 7,082 M during the last financial year, compared with BGN 203,203 M in 2008. This represents a drop of 96,51% for the year.

The company had managed to reduce its operating costs over the year from BGN BGN 755,536 M to 515,105 M.

This saving did not compensate for a sharp drop in revenue, which fell some 47%, from BGN 981,558 in 2008, to BGN 523,096, the report showed.

The company has stated that, by the end of 2010, it plans to open 90 new retail outlets throughout Bulgaria. This expansion will, according to Petrol AD management, meet their strategic plan to increase sales and market share.

They also intend to consolidate a number of smaller independent competitors by the conclusion of franchise or dealer agreements, or through direct acquisition. The company’s management team claim that a significant growth in profitability will be achieved in the medium term by adopting the policy.

Petrol AD currently has some 470 gas stations, with 80 fuel depots around the country, and three port terminals on the Black Sea coast.