Kutinska Petrokemija recorded a loss of 68.1 million kuna in the first half of this year, which is an increase in loss compared to the same period last year by 43 percent, according to the company’s financial report published on the Zagreb Stock Exchange.
Petrokemija recorded a decline in revenue of 16.1 percent, to 1.23 billion kuna, while total expenses fell by 14.3 percent, to 1.3 billion kuna.
Revenue from sales amounted to 1.2 billion kuna, down by 16.2 percent. Meanwhile, revenue from sales in the domestic market decreased by 5.2 percent, while export revenue decreased by 23.9 percent.
In the first half of this year, Petrokemija achieved approximately the same level of production of 520.3 thousand tons of fertilizers compared to the same period last year, while sales decreased by 16.5 percent, to 457.3 thousand tons.
Petrokemija exported 265 thousand tons of fertilizers in the first half of the year, which is 21.3 percent less than in the same period last year, and the revenue generated in the foreign market amounted to 86 million euros, the management of the Kutina company stated in the explanation of the financial report, emphasizing that the increase in sales of mineral fertilizers in the region is one of the key commitments of the long-term sales strategy.
Petrokemija cites lower sales volumes and falling sales prices as the main causes of the loss, and due to lower sales, there was an increase in fixed costs per unit of product.
Lower sales volumes and lower average input prices of raw materials also affected the decline in operating expenses, with Petrokemija noting that there was a slight decrease in procurement prices of all key raw materials, which was somewhat more pronounced in the price of gas. The average achieved procurement price of gas in the first half of the year is, after a long period of constant growth, lower by 12.1 percent compared to the same period last year, but is still 27.5 percent higher compared to the same period in 2011, the report states.
