Petrokemija, Rijeka Shipyard Report Dismal Business Results

By 31 July 2018

ZAGREB, July 31, 2018 - Mineral fertiliser maker Petrokemija ended the first half of 2018 with a loss of 176 million kuna, considerably higher than at the same time in 2017 when the loss was 40.3 million kuna, the Kutina-based company said in a financial statement on Tuesday.

The single biggest blow to the financial result came from increases in prices of CO2 emission units and natural gas.

Total revenue was 923 million kuna, down 6.4 percent, while expenditure increased by 7 percent to 1.09 billion kuna. Domestic sales accounted for 32.9 percent of sales revenue or 303.3 million kuna, up 6.4 percent over the first half in 2017, while exports accounted for 63.3 percent or 584 million kuna, down 9.3 percent.

Mineral fertiliser production fell by 6.3 percent to 537,500 tonnes. Mineral fertiliser sales dropped by 5.2 percent to 519,000 tonnes, with domestic sales amounting to 148,000 tonnes and foreign sales reaching 371,000 tonnes.

About 38.7 million kuna was invested during the reporting period.

The company said that the adverse effects of the indebted Agrokor food and retail conglomerate continued to be felt on the domestic and regional markets.

The Petrokemija Group generated total revenue of 934.4 million kuna and an expenditure of 1.1 billion kuna, posting a loss of 177.6 million kuna.

The “3. Maj” shipyard recorded total revenue of 109.5 million kuna in the first half of 2018, a decrease of about 80 percent from the same period in 2017, and a loss of 151 million kuna, its financial statement showed on Tuesday. By comparison, in the first half of 2017 the Rijeka-based shipyard reported a loss of 1.7 million kuna.

In the first six months of 2018, operating revenue was 65 million kuna, about 85 percent less than at the same time in 2017 when it reached 445 million kuna.

Sales revenue dropped from last year's 397 million kuna to 64.2 million kuna. Foreign sales amounted to 30.3 million kuna and domestic sales reached 33.9 million kuna. Expenditure was 230.8 million kuna, compared to 439 million kuna in the first half of 2017.

The company's assets as at 30 June 2018 totalled 1.27 billion kuna, up by 35.3 million kuna. Short-term liabilities reached 303 million kuna, as against 248 million kuna in the corresponding period last year.