Croatia’s PPD net profit down 22% in 2023

The decline was in line with expectations and was caused by a decline in natural gas sales, it said in a press release last week.

In 2023, the company saw a 20% year-on-year revenue decline to 3.5 billion euro, largely due to the decrease in natural gas prices on European commodity exchanges, which dropped significantly compared to the record-high levels of 2022. Natural gas prices began 2023 at 75 euro per MWh, ending the year at 30 euro per MWh on the commodity exchanges. Additionally, sales on foreign markets contracted due to reduced consumption resulting from warmer weather and a significant decline in industrial production across Europe.

Last year, the company generated 2.6 billion euro, or 76% of its total revenue, abroad.

PPD, which stopped buying gas from Russia’s Gazprom in November 2022, secures gas from European and US sources.

LNG comprised 31% of its total gas deliveries in 2023, while the remaining 69% of the gas supplied by PPD to the market originated from trading on commodity exchanges.

PPD maintained its position as the largest local supplier of natural gas, with sales to Croatian users amounting to 818 million euro.

PPD has operations in Switzerland, Italy, Hungary, Slovenia and Romania.

($ = 0.926 euro)