Agro news

The price of natural gas and CO2 fee main reasons for business losses

In the first nine months of 2018, Petrokemija Plc. operated in the conditions of continued growth of input prices of main raw materials, especially natural gas, real price of which was higher by 19.3 percent in comparison to the achieved average in the same period of 2017. At the same time, the Company was unable to transfer this rise in input prices to retail prices of mineral fertilizers due to fierce competition.

The following important item affecting business was the growth in the price of CO2 emission units, which grew by as much as 161.4 percent in comparison to the end of 2017. These two items, natural gas and CO2, make up for 68 percent of Petrokemija Plc. reported losses in this period. In limited conditions of financing investments, this summer a comprehensive biannual overhaul of Petrokemija Plc. production facilities was conducted, as well as partial investments in modernization and increase of energy efficiency.

Due to reasons above listed, the Company has achieved total income of 1.267,2 million HRK, total expenditure of 1.608,1 million HRK, and reported business losses in the amount of 340,9 million HRK or 26.9 percent of total income in the first nine months of 2018.

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