INA Industrija Nafte d.d., the Croatian refiner controlled by Hungary’s Mol Nyrt., said first-quarter net income fell 9 percent from a year earlier as the country struggled through a recession.
Net income dropped to 376 million kuna ($65 million), while earnings before interest, tax, depreciation and amortization, or Ebitda, fell to 1 billion kuna from 1.29 billion kuna in the same period a year earlier, the Zagreb-based company said in a statement today. Revenue was flat at 7 billion kuna.
“The environment in the first quarter remained challenging and negative movements from 2012 continued into 2013 but the company achieved stable positive results,” Zoltan Aldott, head of the management board, said in the statement.
The refiner’s 2012 profit slumped 62 percent as it halted profitable gas and oil business in Syria to comply with European Union policy on the Middle Eastern country, engulfed in a civil war. Croatia hopes to join the EU in July.
Mol owns 49.1 percent of INA, while Croatia holds a 44.84 percent stake. In the last two years the government has attempted to increase its influence in INA after Mol won controlling rights to Croatia’s largest refiner in 2009.
INA, Croatia’s fourth-biggest employer and one of the country’s biggest investors, spent about 17 billion kuna in the last decade to expand its operations. The company returned to profit in 2010 following two years of losses as oil and gas output in the northern Adriatic and Syria pushed revenue higher.