BUDAPEST--Hungarian oil and gas company MOL Nyrt. (MOL.BU) said
Friday that its Croatian unit INA d.d. (INA.ZG) will be required to
sell natural gas to households at a price regulated by the Croatian
government, resulting in a 10.2 billion forint to 14.2 billion
forint ($44.9 million to $62.5 million) loss in revenue
annually.
MAIN FACTS:
- Under a set of resolutions Feb. 27, related to INA's
obligation to deliver the gas produced in Croatia under a regulated
price as put forward by the economy ministry, INA will sell the
portion of its natural gas production for household supplies to
state-owned company HEP as the wholesale market supplier. The
decision also makes it obligatory for the distributors to purchase
gas from HEP.
- So far INA--through Prirodni plin--received HRK2.2000 per
cubic meter for sales in the household segment while now INA shall
receive HRK1.7058 per cubic meter for the respective volumes.
Parallel, the regulated sales price of HEP towards distributors to
household customers will be HRK2.4032 per cubic meter.
- According to the new regulation--on a like-for-like basis and
taking into account adjustments in cost items--INA will have to
transfer, depending on the natural gas quantities, HRK250 million
to HRK350 million, or HUF10.2 billion to HUF14.2 billion ($44.9
million to $62.5 million), annually from its own revenues to
HEP.
Write to the Budapest bureau at budapest@dowjones.com