INA Industrija Nafte d.d., the Croatian refiner controlled by Hungary’s Mol Nyrt., said its 2012 profit fell 62 percent from a year earlier after halting operations in Syria.
Net income was 681 million kuna ($120 million) and revenue was unchanged at 29.8 billion kuna. Earnings before interest, taxes, depreciation and amortization fell 30 percent to 4.5 billion kuna, the company said in a regulatory statement.
“Despite significant challenges, including the loss of production from Syria and lower demand for key oil products, the company achieved solid results through efforts to increase efficiency,” Zoltan Aldott, head of management board, said in the statement.
INA, whose profit almost doubled in 2011 to 1.8 billion kuna, halted its profitable gas and oil business in Syria a year ago to comply with European Union policy on the Middle Eastern country, engulfed in a civil war.
Mol owns 49.1 percent of the Zagreb-based refiner, while the Croatian government holds a 44.84 percent stake. Croatia in the last two years 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.
In addition to 11 exploration and production plants in continental Croatia and 19 off-shore platforms in the northern Adriatic that are jointly owned with Italy’s ENI SpA and Edison SpA, INA has production facilities in Syria, Egypt and Angola.
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