Bosnia: Neftegaz Innovation Corporation OAO Moscow to inject cash into Oil Refinery Brod to avoid major business disturbances

, SEE Energy News

Oil Refinery Brod in the last year reported a net loss of 12.5MEUR, while the accumulated losses of the company at the end of last year amounted to 260MEUR.

In addition, ending with 31 December last year, short-term liabilities of the Oil Refinery Brod are higher than its current assets by app. 20MEUR, while net debt was more than three times higher than the capital.

To all of this the attention was drawn by the audit company “Deloitte”, which has audited unconsolidated financial statements, for which it give an opinion with taciturnity.

– The ability of the Company to continue its operations in accordance with the principle of business continuity depends on the continual financial support of the parent company. As disclosed in the note, the parent company “Neftegaz Innovation Corporation OAO” Moscow, has committed to provide financial support to the Company for a period of 12 months from the date of submitting of non-consolidated financial statements – it is stated in the audit report.

Stating the reasons why they gave an opinion with taciturnity, the Auditors stated that refinery in Brod did not perform a detailed analysis of the depreciation of the value of its fixed assets, as required by international accounting standards.

– Based on the presented documentation we were not able to verify the recoverable value of the fixed assets shown in the unconsolidated balance sheet of the Company on December 31, 2014 – it was highlighted, among other things, in the report of the independent auditor.