Lukoil Neftochim Burgas increased refinery throughput after June and reported its strongest monthly profit in five to six years in July. The improvement followed operational and liquidity pressures seen earlier in the summer.
Throughput recovery after management changes
Processing volumes have gradually recovered following management and organisational changes introduced after special commercial administrator Evgeni Simeonov took over in early June. Liquidity was highlighted as one of the immediate concerns during the transition.
The refinery arranged crude supplies using deferred payment terms to reduce pressure on working capital. At the same time, procurement shifted toward securing the cheapest crude compatible with the plant’s technical requirements. Management also sought improved prices for products sold into export markets.
July profitability tied to processing rates and sales conditions
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 reduced concerns that a major maintenance programme could force a prolonged shutdown in the near term.
The review found no requirement for such a shutdown before 2028. The Burgas refinery remains a central component of Bulgaria’s fuel supply and distribution system, according to management.
Fuel prices, sanctions risk, and counterparty controls
Management said elevated fuel prices reflect tight international availability of finished products rather than operational problems at the refinery. Sanctions were described as the largest external risk affecting operations.
The company strengthened counterparty controls by introducing a dedicated committee to screen companies and individuals before transactions are approved. Simeonov warned that the derogation under which operations can continue remains critical. Without it, around 5,000 jobs could be exposed, more than 120 filling stations could close, and disruption could spread through parts of Bulgaria’s fuel logistics chain.
The refinery’s situation was described as showing two different trends at the same time. Operational performance, cash management, and profitability have improved markedly since June, while longer-term maintenance of those gains depends on regulatory and sanctions conditions outside the company’s direct control. For the Bulgarian fuel market, rising refinery runs provide near-term supply support.
The principal structural risk has shifted from refinery performance toward whether the regulatory framework continues to permit normal crude procurement, financing, and product sales.
