In 2021, Croatia's largest fertilizer maker, Petrokemija, generated a net loss of 6 million kuna (€800k), a far cry from 265 million kuna (€35 million) profit in 2020, the company said on Wednesday.

“Petrokemija’s 2021 results were strongly affected by global economic disruptions leading to an unforeseen, record-high, increase in gas prices. The unfavorable external environment was reflected in high prices of natural gas and EU emission allowances, while the prices of mineral fertilizers increased at a lower rate and with delay,” Petrokemija said in a press.

Petrokemija additionally suffered damage to a part of its plants due to the 2020 earthquakes in Croatia “which to some extent affected the production plan and operating costs… The negative impacts were partially mitigated by implemented efficiency measures and production optimization… Despite the unpredictable and challenging 2021, Petrokemija managed to maintain a stable financial position,” the press release said.

Operating revenues amounted to 2.2 billion kuna, or 21 percent up year-on-year, while sales revenues went up 20 percent to 2.15 billion kuna. Operating expenses were also 2.2 billion kuna, up by 44 percent from 2020.

The company’s 2021 earnings before tax totaled to 143 million kuna, which is less than in 2020, mostly due to a significant increase in natural gas price, CO2 emission allowance prices, reduced production caused by plant overhaul, and somewhat lower market demand, particularly in Q4 2021.

Without non-recurring items, net profit in 2021 was 47 million kuna, almost six times less from the 290 million kuna net profit in 2020.

“Non-recurring items had a significant impact: 52 million kuna in 2021, and 25 million kuna in 2020. The negative effect of the value adjustment of liabilities for CO2 emission allowances in 2020 and 2021 resulted from a significant increase in the price of CO2 emission allowances.”

Capital investments amounted to 133 million kuna, or 141 percent up from 2020.

(€1 = 7.52 kuna)