Zagreb, 28 April 2023 – With the signing of the Agreement on the transfer of business shares from PPD and INA to the Turkish company Yildirim and the Agreement on the transfer of the Recapitalization and Restructuring Agreement between the company Terra mineralna gnojiva (TMG), INA, PPD, Yildirim and CERP, the sale procedure was completed to Yildirim for 54.52 percent of the shares held by the TMG company in Petrokemija. With this, the company Terra mineralna gnojiva, meaning both INA and PPD, are leaving the ownership and management structure of Petrokemija after four and a half years.
At the end of 2018, the company TMG (owned by INA and PPD) took over 54.52 percent of the shares of Petrokemija. Petrokemija then had a loss of HRK 474 million from previous periods, when the state was the sole owner of the factory, although the prices of gas, the basic raw material used by Petrokemija for production, were then 10 times lower than in 2022.
At the time of recapitalization, the state paid off 450 million HRK in debts, thereby avoiding bankruptcy and resolution costing as much as 500 million EUR. At the same time, INA and PPD paid their share of 300 million HRK and took over the management of Petrokemija. In the past four and a half years, Petrokemija has repaid its old debts to HEP in the amount of 330 million HRK, it has repaid debts to various suppliers in the amount of over 170 million HRK, and outstanding CO2 emission units worth 230 million HRK have been repaid. In the period when INA and PPD managed the factory, a total of more than 730 million HRK of debts incurred before the company TMG entered the ownership structure of Petrokemija was repaid.
In addition, in the process of restructuring, over 50 million HRK in severance pay has been paid.
In the mentioned period, organizational, business, and financial restructuring was carried out in Petrokemija, and the owners did not pay out a dividend, but all the money was invested in the company. In 2020 and 2021, Petrokemija already achieved record profits.
Also, in the period from 2019 to 2022, Petrokemija made investments into the factory in the total amount of 293 million HRK, and the company TMG fulfilled all due contractual obligations in their fullest.
During 2022, Petrokemija fulfilled all obligations from the Collective Agreement, paid salaries, and other assumed obligations, even though the factory stopped production due to the pandemic and extremely high energy prices.
Even though the prices of gas, the basic raw material for the production of mineral fertilizers, in 2022 reached record levels, and despite this, Petrokemija performed positively.
“Before joining the ownership structure of Petrokemija as a gas supplier, we significantly contributed to maintaining the production of mineral fertilizers, even jeopardizing our own operations due to Petrokemija’s high debts to us as the largest creditor. We are glad that in 2018 we were part of the solution which saved Petrokemija from bankruptcy. We did the best we knew and could under the given circumstances in the best interest of Petrokemija and Kutina. The production of mineral fertilizers is not our core business, and it is time for Petrokemija to continue with an owner who knows that business and the market. We thank the Government of the Republic of Croatia and the Ministry of Economy and Sustainable Development for the constructive negotiations conducted in the best interest of Petrokemija and the Croatian economy. We wish the employees of Petrokemija and the new owners a lot of success on the way to creating a successful and profitable Petrokemija“, said Pavao Vujnovac, President of the Management Board of PPD.
“The knowledge, resources and energy that we have invested in Petrokemija in the past period have contributed to the preservation of the production of mineral fertilizers in Kutina and Croatia and to the improvement of the company’s operations. INA has always been a reliable partner of Petrokemija, even in moments when it could not fulfil its obligations. By participating in the rescue of Petrokemija from certain bankruptcy, we ensured the prerequisites for the continuation of its business. INA again demonstrated its strategic responsibility towards Croatia and its industries even though the production of mineral fertilizers is not in our development plans. We wish the new owners and Petrokemija much success in their future operations, and we thank all stakeholders in this process for their successful cooperation”, said Péter Ratatics, President of the Management Board of INA.
About INA Group
INA Group plays a leading role in oil operations in Croatia and a significant role in the region in oil and gas exploration and production, oil refining and distribution of oil and petroleum products. INA Group comprises several subsidiaries fully or partial owned by INA, d.d. The Group’s seat is in Zagreb, Croatia. Apart from Croatia, INA also has upstream operations in Angola and Egypt. Oil refining takes place at the Rijeka Oil Refinery, while sustainable alternative businesses are being developed at the Sisak industrial site. INA’s regional retail network consists of more than 500 retail sites in Croatia and neighbouring countries. INA Group is a member of MOL Group.
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