Bosnia and Herzegovina: Increased profit at oil refinery Bosanski Brod in the first half of the year

, SEE Energy News

Compared to a loss of 28.5 million euros in the same period last year, Bosnian oil refinery in Bosanski Brod, owned by Russian company NefteGazInkor, recorded a net profit in the amount of 19.5 million euros in the first half of 2020.

The company’s operating revenues dropped by 73.5 % to just over 300,000 euros in the first six months of the year, while its operating costs dropped to 12.5 million euros from last year’s 13.6 million euros. However, the company’s financial revenue surged to 67.5 million euros in January-June 2020, from just 0.5 million last year.

Oil refinery in Bosanski Brod recorded a net loss in the amount of 60 million euros in 2019, compared to a loss of some 7.5 million euros in the previous year. The company’s operating revenues dropped by 93 % to just 1.2 million euros in 2019, while its operating costs dropped by 11 % to 32.4 million euros. The refinery is out of operation since January 2019 and it was initially expected that it should be back online in early 2020. Last month, RS Ministry of Energy and Mining said that the refinery should restart production by the end of the year, as soon as the project for its gasification is completed.

In early 2020, Croatian company Crodux, with whom the refinery has a gas supply contract and an agreement on the construction of a direct gas pipeline, said that the construction works on the construction of the internal natural gas infrastructure have been completed for the most part, and that it is planned that the first volumes of gas through the direct pipeline will enter the refinery in the third quarter of this year. However, this was before the coronavirus outbreak. Oil refinery in Bosanski Brod, as well as the refinery in Modrica and Nestro Petrol in Banja Luka are all part of Optima Group, majority owned by NefteGazInkor, a subsidiary of the Russian company Zarubezhneft.