INA Industrija Nafte d.d., the Croatian refiner controlled by Hungary’s Mol Nyrt., said first-quarter net income fell 79 percent from a year earlier as oil prices declined and regulatory changes adversely affected the company.
Profit dropped to 50 million kuna ($7.3 million), while earnings before interest, tax, depreciation and amortization, or Ebitda, fell 15 percent to 707 million kuna, the Zagreb-based company said in a statement on Thursday. Revenue declined 31 percent to 3.8 billion kuna.
“A drastic fall in crude oil prices and adverse regulatory changes weighed on our results,” Zoltan Aldott, head of the management board, said in the statement. “The company will continue with investment plans and will seek new development opportunities,” he said.
Croatia’s largest energy company is seeking to recover from a second consecutive annual loss in 2014, caused by a drop in oil prices and Syria’s production remaining offline for a third year. Croatia, which joined the European Union in 2013, has seen its economy shrink in each of the last six years, adding to pressure on INA’s bottom line.
Mol owns 49.1 percent INA, with the Croatian government holding 44.84 percent. The two sides have been locked in a dispute over the refiner’s future since 2013 and both have filed arbitration claims. Mol has said it may consider selling its stake, with Croatia responding that it may look for a new partner.