Loss of the Russian refinery in Bosanski Brod exceeds 300 million euros

The oil refinery in Bosanski Brod, owned by the Russian state company ‘Njeftegazinkor’, continues to operate negatively and accumulate losses that, according to the latest audit report, have exceeded 300 million euros, reported the specialized portal Capital.ba on Tuesday.

According to the audit report for 2017, which the portal had access to, the refinery operated negatively last year as well, when it had a “minus” of 15 million convertible marks (7.67 million euros), bringing the accumulated loss to 611.6 million convertible marks or 312 million euros.

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The audit report states that the short-term liabilities of the refinery exceed the assets it possesses by 63.9 million convertible marks (32.6 million euros), indicating significant uncertainty in assessing the stability of operations.

The auditors’ assessment is that the operations of the oil refinery, as well as the oil refinery in Modriča, which has the same owner, depend solely on continuous financial support from ‘Njeftegazikor’.

323 million euros in liabilities

The financial obligations of the Bosanski Brod refinery are estimated at 633 million convertible marks, or 323 million euros, with long-term obligations at 540 million convertible marks, or 276 million euros, and the remainder being short-term obligations, including a debt to the Tax Administration of the Republic of Srpska of 12.7 million convertible marks (about 6.5 million euros).

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This debt has been awaiting payment for years, and the tax authorities of the Republic of Srpska have reprogrammed it multiple times, interest-free, with the new repayment deadline set for July 1, 2019.

The negative performance of the refinery is also accompanied by a constant reduction in the number of employees. The refinery in Bosanski Brod now employs 930 people, 63 fewer than a year ago.