October 28 (SeeNews) - Croatian fertiliser producer Petrokemija [ZSE:PTKM-R-A] said on Thursday its consolidated net profit plummeted to 16 million kuna ($2.5 million/2.1 million euro) in the first nine months of 2021, from 314 million kuna in the same period of 2020, on rising natural gas prices and CO2 emission allowances, shrinking demand and an overhaul of its production capacities.
“Petrokemija Group performance in the first three quarters of 2021 is impacted by significantly higher natural gas price, higher price of CO2 European emission allowances and lower market demand. Negative impacts are partially mitigated by higher fertilizer prices and implemented efficiency measures,” CEO Davor Zmegac said in the filing with the Zagreb Stock Exchange (ZSE).
The price of natural gas, a key raw material for production of fertilisers, rose 246% on the year in the first nine months of 2021, while the price of CO2 emission allowances rose 119% on the year due to new EU directive under which CO2 emissions must be further reduced, Petrokemija said.
In the first three quarters of 2021 EBITDA excluding special items amounted to 141 million kuna, down from 401 million kuna int he same period last year, mainly due to significantly higher natural gas price and lower market demand, Petrokemija said.
Petrokemija's total production was lower 29% on the year due to turnaround in the first quarter and planned shutdown in June, which was made in order to optimize production in line with market demand and perform required maintenance.
Despite lower quantities sold, sales revenue increased by 6% to 1.5 billion kuna due to increase of mineral fertilizers sales prices, offsetting the increase of natural gas price in Europe.
In the first quarter of 2021, the turnaround of the production plants was completed which included the ammonia, UREA, water processing, power plant, aulphuric acid, DEE, PEPI, KAN 1, AN/KAN 2 and NPK 1 plants. This turnaround also included the implementation of investments aimed at energy efficiency development, the most significant being a new combustion air preheater installed at the ammonia plant, worth 22 million kuna.
CAPEX in the period through September stood at 92 million kuna, which is an increase by 221% compared to the same period last year. The company's shares traded 1.96% lower at 40 kuna on the Zagreb bourse intraday on Thursday.
(1 euro = 7.512 kuna)