Great business results continue for Croatia’s state-owned oil pipeline company.
Jadranski Naftovod (JANAF), a Croatian state-owned oil pipeline company, had another successful period under the leadership of Dragan Kovačević. In the first quarter of 2016, the company has increased its net profits, which have reached 53.7 million kuna. This is a surge of 85.4 percent compared to the same period last year, reports Večernji List on April 27, 2016.
In the last five years, JANAF has invested one billion kuna into the new facilities and modernization. Currently, there are ongoing investments in the amount of 380 million kuna. The high net profits are the result of both the revenue increase and the increased control over the company’s operation costs.
JANAF’s total income in the first three months of the year, the company said, was higher by 18.8 percent year-on-year. Meanwhile, the total costs of its operations shrunk by 2.9 percent. The company managed to achieve the income growth due to new contracts, with the biggest jump of 54 percent as a result of contracts related to the storage of oil.
The income has risen in all segments of the company’s business operations, while the biggest impact was that of the income earned from the transport of oil and oil derivatives, as these areas comprise two thirds of the total income of the company. They recorded an increase of 18.6 percent compared to the same period last year.
JANAF earns most of its money through contracts with foreign companies. Seventy four percent of the income was made as a result of deals with foreign partners. For 2016, Kovačević has made deals worth 630 million kuna that will ensure the successful business operations of the company until the end of this year.
JANAF is also one of six companies whose boards of directors will be chosen through head-hunting agencies, and the selection process for the members of the management boards in the public companies should start soon. JANAF owns terminals on the island of Krk, as well as in Sisak, Virje, Slavonski Brod and Žitnjak, and it operates 622 kilometres of pipelines. It has a total of 1.54 million cubic metres of storage capacity for oil and 202,000 cubic metres of capacity for storage of petroleum products.