Higher runs and improved monthly profitability
Lukoil Neftochim Burgas increased refinery throughput after June and reported its strongest monthly profit in five to six years in July. The improvement followed earlier summer periods marked by operational and liquidity pressures. Processing volumes have gradually recovered since management and organisational changes were introduced.
The changes came after special commercial administrator Evgeni Simeonov took over in early June. Liquidity was identified as one of the immediate concerns during the transition. The company also adjusted how it sourced crude and managed cash tied to procurement.
Crude procurement, working capital and export pricing
The refinery arranged crude supplies using deferred payment terms to reduce pressure on working capital. Procurement strategy shifted toward securing the cheapest crude compatible with the plant’s technical requirements. Management also sought improved prices for products sold into export markets.
The combination of higher processing rates and stronger commercial conditions supported the refinery’s best monthly profit in several years during July. A technical assessment also addressed operational planning for the coming period. The review reduced concerns that a major maintenance programme could trigger a prolonged shutdown.
Maintenance outlook and implications for Bulgaria’s fuel supply
The assessment found no requirement for such a shutdown before 2028. This matters for Bulgaria because the Burgas refinery remains central to the country’s fuel supply and distribution system. Management said elevated fuel prices are linked to tight international availability of finished products rather than problems at the refinery.
Sanctions remain the largest external risk for operations. The company strengthened counterparty controls by introducing a dedicated committee to screen companies and individuals before transactions are approved. Simeonov also warned that the derogation enabling operations to continue is critical.
Derogation risk, jobs and filling-station exposure
Simeonov said that without the derogation, around 5,000 jobs could be exposed. He added that more than 120 filling stations could close, with disruption potentially spreading through parts of Bulgaria’s fuel logistics chain. The company described two simultaneous trends affecting its position in the market.
Operational performance, cash management and profitability have improved markedly since June. However, maintaining those gains over time depends on regulatory and sanctions conditions outside the company’s direct control. For Bulgaria’s fuel market, higher refinery runs provide near-term supply support while structural risk shifts toward whether normal crude procurement, financing and product sales remain permitted.
