Yuzhny GOK, a major Ukrainian iron ore producer, closed 2006 with net profit down 78% to 5.564 million hryvni, the company said in a statement published in the press.

The company's retained earnings stood at 265.55 million hryvni at the end of 2006.

Current liabilities increased by 36.3% last year, to 1.05 billion hryvni, and long-term liabilities grew by 87.6% to 431.21 million hryvni. Long-term financial investments were unchanged at 1 million hryvni.

Yuzhny GOK's receivables rose 66.2% to 1.096 billion hryvni. The company's equity edged up 0.5% to 945.67 million hryvni, fixed assets slipped 0.1% to 1.031 billion hryvni, and overall assets grew 25% to 2.432 billion hryvni.

The company did not disclose its sales figures for last year.

Yuzhny GOK shareholders will review last year's results, distribution of profits and plans for 2007 at their annual general meeting on May 30. They will also discuss the rejection of plans to increase charter capital by 1.072 billion hryvni, to 1.608 billion hryvni from 535.915 million hryvni.

The decision to issue the new shares was made at a shareholder meeting in the summer of 2005, but it was later disputed in court by the State Property Fund.