INA continues with revenues growth in Q1-Q3 2019
- Net sales revenues increased by 2% and amounted to HRK 16,550 million
- CAPEX amounted to HRK 1,541 million and increased by 69%
- CCS EBITDA excluding special items increased by 8% and amounted to HRK 2,397 million
- INA Group’s EBITDAamounted to HRK 2,208 million
- Operating cash flow amounted to HRK 1,378 million
Zagreb, October 28, 2019 – In Q1-Q3 2019, INA Group revenues totaled at HRK 16,550 millionwhile CCS EBITDA excluding special items amounted to HRK 2,397 million, improving 8% compared to the same period last year. The average oil prices decreased somewhat during the first nine months of 2019 therefore reported EBITDA amounted to HRK 2,208 million and profitamounted to HRK 679 million.
Exploration and Production EBITDA amounted to HRK 1,819 million on the back of lower hydrocarbon price. Overall production volumes were flat supported by higher crude oil production in Egypt, as a result of increased exploration drilling and development activities.
Refining and Marketing including Consumer Services and Retail CCS EBITDA excluding special items amounted to HRK 526 million increasing by HRK 137 million year-on-year. The main result driver was better sales performance, utilizing market conditions and improved Rijeka Refinery white product yieldsas well as improving consumer services performance. Retail volumes increased by 3% as a result of better performance in Croatia and network expansion in Montenegro.
Q1 – Q3 2019 was an investment intensive period. CAPEX increased by 69% compared to the same period last year and amounted HRK 1,541 million, mainly driven by refining investments. Investments in Croatia amounted to HRK 1,319 million, more than double compared to the same period last year. Net gearing amounted to 21% with net debt at HRK 3,036 million.
Statement of Mr. Sándor Fasimon, President of the Management Board of INA:
“Intensive investments INA carried out during the first nine months of 2019 started to show results. Total investments exceeded HRK 1.5 billion, majority of which was spent domestically. Rijeka refinery turnaround, as one of the largest ones in the company’s history, was completed. Numerous improvements implemented during this turnaround are already visible in the better production structure, with higher share of profitable white products. This is also to be further improved with future expected projects, in line with the INA Downstream 2023 New Course program.
Also, the increased level of Upstream activities in Egypt is starting to give results with a 23% increase of oil production in Egypt. This, together with the continuous workover activities in Croatia, currently stabilized the hydrocarbon production impacted with natural decline.
The final results remain effected by the less favorable external environment, but INA utilized the market environment. Bosnia and Herzegovina sales increased by around 18% while total INA Downstream sales stayed stable at more than 3.1 million tones. Retail performance stayed strong, both domestically and in the expanded Montenegro network.
In general, with the lower processing due to planned Rijeka turnaround and deteriorated environment, INA Group EBITDA and other indicators are stable, but somewhat decreased. Still, the total revenues stayed strong and even increased by 2%, giving a favorable outlook for 2019 year end.”Priloženi dokument