Petrokemija Sees Net Profit Plunge By 94%

By 28 October 2021
Petrokemija Plant in Kutina
Petrokemija Plant in Kutina Photo: Nikola Cutuk/PIXSELL

ZAGREB, 28 Oct 2021 - Fertilizer manufacturer Petrokemija generated a net profit of HRK 19 million in the first nine months of 2021, down from HRK 315 million in the same period of 2020, the company's financial statement shows.

Petrokemija's result for the first nine months of this year was affected by increased prices of natural gas, higher carbon emission allowance prices, and lower demand. The negative effects were partly offset by higher selling prices of mineral fertilizers and the efficiency measures implemented, CEO Davor Žmegač said in a comment.

Operating revenue totaled HRK 1.5 billion, up by 7.0% over the same period of 2020. Sales revenue rose by 6.0% to HRK 1.49 billion, fuelled by the increase in prices of mineral fertilizers, which in turn was due to higher prices of natural gas on the European markets.

The company said that prices of natural gas on the European markets had gone up by 249 percent on average, while carbon emission allowance prices had increased by 129 percent following a new EU directive aimed at further reducing CO2 emissions.

Operating expenditure rose by 38% to HRK 1.49 billion. EBITDA without one-off items was HRK 141 million, down by 65 percent, and net profit fell by 94 percent to HRK 19 million. Capital investment rose by 217 percent to HRK 91 million.

(€1 = HRK 7.521247)

For more, make sure to check out our dedicated business section.