Croatian artificial fertiliser producer Petrokemija ended the first half of 2018 with a 176 million kuna loss (€23.7 million), a significant increase from the same period last year, when the company posted a loss of 40.3 million kuna (€5.4 million), the company said in their financial report released on Tuesday.

The biggest blow to the company’s financial result was the increase of prices of CO2 emission units. Some 63.6 million kuna (€8.6 million), or 36 percent, of total operating loss in H1 2018 refers to the CO2 emission compensation fees.

The increase in natural gas prices also contributed to the loss, Petrokemija said, adding that the price growth resulted in additional cost of some 60.5 million kuna (€8.1 million) compared to the same period last year, and makes for 34 percent total loss in H1 2018.

Petrokemija’s total revenue in the first half of 2018 was 923 million kuna (€124.6 million), or 6.4 percent less than last year, while total expenditures increased by 7 percent, to 10.9 billion kuna (€1.4 billion).

It is visible from the H1 2018 business report that external factors, such as financial and market, still represent the biggest drag to the company’s business, Petrokemija said.

After a lengthy preparation period, this summer Petrokemija’s facilities will undergo a comprehensive overhaul to prepare them for the next period, as well as to partially modernise the equipment and increase its energy efficiency.

Earlier this month, Petrokemija shareholders’ General Assembly decided to cover the company’s last year’s loss and increase its share capital to up to 450 million kuna (€60.7 million) through cash payments and issuing new shares.

The decisions made at the General Assembly have created conditions for the final stage of the implementation of the company’s restructuring programme, as well as the legal framework of Petrokemija’s recapitalisation

(€1 = 7.39 kuna)

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