Croatia’s state oil storage and transport company Jadranski naftovod (JANAF) has signed two new contracts with Croatian multinational oil company INA-Industrija nafte.
One contract is for the transport of crude oil from JANAF’s Omišalj Terminal, on the island of Krk in northern Croatia, to INA’s nearby Rijeka Oil Refinery. The contract runs from 1 July 2021 to 30 June 2022.
Under the terms of the second contract, JANAF will store petroleum products for INA at its Žitnjak Terminal in Zagreb, Croatia. The contract runs from 1 August 2021 to 31 July 2024 and may be extended for a further two years.
‘Despite the current challenges in the oil market, the conclusion of contracts with INA is yet another confirmation of the significance of JANAF as the backbone of Croatia’s energy independence. The strategic importance of JANAF for the Republic of Croatia is further underlined by continuous business successes and admirable results of our extremely stable operations,’ says JANAF’s management board in a statement, adding: ‘Indicators of JANAF’s strong presence and stable position in the oil market are also a result of a proactive approach to business partners resulting in new or extension of existing storage contracts, despite strong competitors in the Mediterranean spot market.’
In its Q1 2021 results, released on the same day as the INA announcement, JANAF reported revenues of HRK 198.4 million (US$26.47 million), an increase of 10% compared to Q1 2020. Operational income accounted for 99.3% of this total. Revenues from core businesses – crude oil transport and storage – were up 11%, to HRK 195.1 million. 62% of core business activity income was generated through operations with foreign customers.