Petrohemija Pancevo expects EUR 5 million in investments – New employments planned

HIP Petrohemija ended 2019 with a negative result of RSD 1.21 billion in terms of gross profit, the company newsletter Informator announced.

The state company had an income of RSD 29.2 billion, but the EBITDA and the net result are negative and lower by 2.35 billion than planned for 2019, Informator reports from the session of the Supervisory Board of Petrohemija.

At the January session, the Supervisory Board adopted the reports on the operations in December and the 12 months of the previous year and concluded that the reason for the results being worse was “the negative trend of the prices of petrochemical products”, reports 0.13.info.

In 2018, Petrohemija had an income of 39.4 billion, and the 2019 business plan targeted 43.8 billion, but only 29.2 billion was realized.

The EBITDA in 2018 amounted to 870 million dinars, and the 2019 plan targeted 1.39 billion, but the EBITDA in 2019 turned out to be minus RSD 1.21 billion.

The Supervisory Board reminded that 2020 would be a year of challenges, due to the unfavorable market conditions and that this would require the Board of Directors of Petrohemija to take the measures necessary to reduce the negative market effects.

The board also adopted the report on the status of investment projects for 2019 – a period in which EUR 12 million was paid for capital investments, whereas another EUR 5 million was contracted. This was assessed as the largest investments in a single year in Petrohemija's history.

Aiming to reduce the average age of its employees, Petrohemija expects to get the necessary permit to employ 40 new workers this year, Informator reports.

HIP-Petrohemija a.d. Pančevo

EEBITDA

operating profit

investments in Petrohemija

reports on the status of investment projects

Supervisory Board of Petrohemija

negative market effects