INA continues with revenues growth in 2019
- Net sales revenues increased by 1% and amounted to HRK 22,597 million
- CAPEX amounted to HRK 2,150 million and increased by 18%
- Refined product sale in Croatia increased by 12% and in B&H by 10%
- Operating cash flow amounted to HRK 2,862 million and increased by 1%
Zagreb, February 20, 2020 – In 2019, INA Group revenues amounted to HRK 22,597 million, which is a stable performance compared to 2018, despite the more challenging external environment. CCS EBITDA excluding special items amounted to HRK 2,897 million in 2019, mainly due to the 10% decline in Brent crude price. CAPEX was higher by 18% in 2019 year-on-year and amounted to HRK 2,150 million, with increased investments in Refining and Marketing.
Exploration and Production revenues amounted to HRK 3,745 million in 2019 and EBITDA excluding special items amounted to HRK 2,356 million, on the back of 9% lower realized hydrocarbon prices and a 3% decline in hydrocarbon production. Overall production volumes were supported by higher crude oil production in Egypt, which was more than offset by the natural decline on Croatian fields, especially on gas fields. Refining and Marketing, including Consumer Services and Retail, CCS EBITDA excluding special items amounted to HRK 557 million in 2019 and increased by HRK 271 million year-on-year. Simplified Free Cash Flow of the segment was negative and amounted to HRK (779) million in 2019 due to the negative Refining and Marketing cash flow. The main event of the year for Refining was a large scale turnaround completed in H1 and also the final investment decision on Residue Upgrade Project, the largest investment in the recent history of INA in Croatia. At the same time sales were stable, utilizing market conditions. Retail volumes were higher by 3% due to improving performance in Croatia and the network expansion in Montenegro.
Net gearing amounted to 18.5% with net debt standing at HRK 2,554 million at the end of 2019. Operating cash flow was stable and amounted to HRK 2,862 million and increased by 1%.
Statement of Mr. Sándor Fasimon, President of the Management Board of INA:
“In 2019 INA Group managed to achieve stable revenues in the challenging environment.
Crude production stayed stable where increased level of activities in Egypt already started giving results, offsetting the lower domestic production. Still, the 10% lower Brent levels impacted both the revenues and EBITDA.
For the Refining segment 2019 was a busy year, in a positive manner. Large scale turnaround of Rijeka Refinery, worth HRK 800 million, was finished and the results of the turnaround are already visible in improved product structure. Additionally, final investment decision on the Residue Upgrade Project was made, the company’s biggest investment in recent history, amounting around HRK 4 billion. Commission of the new unit is planned for 2023 and with the Residue Upgrade unit, the product structure of Rijeka Refinery will further improve by increasing the share of profitable white products. This, alongside with other activities in line with the INA Downstream 2023 New Course program, is aimed to turn our Refining business currently negative cash flow into sustainable and profitable in the long run.
As for the regular activities, sales on the core markets of Croatia and B&H increased and further strengthened INA leading position while Retail operations continue to improve, biggest contribution coming from Croatia and Montenegro markets.”