Agro news

Profit of HRK 21 million in the first quarter

In the first quarter of 2021 Petrokemija Plc generated a net profit of HRK 21 million compared to HRK 150 million of net profit generated in the same period last year. Comparing the results without non-recurring items, net profit in the first quarter of 2021 amounts to HRK 72 million, as opposed to HRK 131 million in the first quarter of 2020.

Non-recurring items indicate a negative effect of the value adjustment of liabilities for the CO2 emission charges amounting to HRK 50 million, caused by a significant increase of the CO2 allowance prices. Petrokemija's result for the first quarter of 2021 was also affected by higher prices of natural gas and lower sales volume. Lower sales volume resulted from the suspension of production due to the planned routine overhaul carried out in the period from late December 2020 until February 2021.

«Negative effects were partially mitigated by strong seasonal demand and good selling prices of mineral fertilizers, as well as by good coordination of overhaul and sales activities. Although the adjustment of liabilities for the CO2 emission charges was negatively affected by record high prices of CO2 allowances, in the first quarter of 2021, the Company fully met all of its liabilities for the previous period, which reduces the financial risks of doing business in the following period”, said the President of the Management Board Davor Žmegač. The management has been monitoring closely the development of the situation concerning COVID-19 and following relevant recommendations by the Croatian Institute of Public Health with regard to securing health and safety of its workers. In addition, it has been working continually on evaluating the impacts of the pandemic on the Company's operation.


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