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Modrica Oil Refinery Reports Significant Financial Losses Amid Rising Costs

The Modrica oil refinery in Croatia has reported a substantial financial setback for the previous fiscal year, closing with a net loss of approximately 2.49 million euros. This figure marks a significant increase in the deficit, which has widened by about 1.19 million euros or roughly 90% compared to the prior year. Consequently, the refinery’s accumulated losses have now reached nearly 60.45 million euros, underscoring the ongoing financial distress faced by the facility.

In terms of operational performance, total operating revenue for the refinery was approximately 5.2 million euros, reflecting a slight decline from the previous year’s figures. Conversely, overall expenditures surged sharply from around 6.85 million euros to 7.88 million euros. The most considerable upward pressure on costs stemmed from increased depreciation charges and provisions, which have significantly impacted the refinery’s bottom line.

Interestingly, while total expenses have escalated, payroll costs have decreased. Spending on salaries fell from about 3.12 million euros to roughly 2.86 million euros, indicating a continued contraction in workforce size. As of the end of 2025, the refinery employed approximately 170 workers—the lowest number since its inception. This reduction represents a workforce cut of nearly half since 2019 and about one-third compared to levels in 2013.

The latest financial results highlight persistent structural and financial challenges that the Modrica oil refinery is grappling with. The combination of shrinking operations and rising fixed costs continues to exacerbate the company’s losses, raising concerns about its long-term viability in an increasingly competitive energy market.

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