The future of Bosnian oil refinery Rafinerija Nafte Brod is uncertain without support from its Russian parent NeftegazInCor, considering its accumulated consolidated loss of 591.3 million marka (302.3 million euro) by the end of 2016, auditing company KPMG said on April 11, 2017.
The company's short-term liabilities exceeded current assets by 15.7 million marka*, KPMG said in a report filed with the Banja Luka bourse on Monday.
The auditor also warned that the fair value of the company's non-material assets, property, plants and equipment could differ significantly from the book value of 742.1 million marka net.
KPMG earlier expressed similar concerns regarding Bosnian fuel retailer Nestro Petrol, whose consolidated losses amounted to almost 11 million marka at the end of 2016, while its short-term liabilities exceeded current assets by 35.5 million marka.
Bosnia's 2 oil refineries, Modrica and Brod, fuel retailer Nestro Petrol and Optima Group all operate under the Nestro Group umbrella.
The oil refineries located in Bosnia's Serb Republic entity suffered great losses in 2016 and their combined debt reached hundreds of millions of marka.
The fuel retailer saw a very slim non-consolidated net profit but its debt remained high.
Russia's Zarubezhneft, via its subsidiary NeftegazInCor, owns 80% of Brod, 75.65% of Modrica and 80% of Nestro Petrol.
`* (1 euro= 1.95 marka)