INA: strong operating cash flow in Q1 2018
- INA Group’s EBITDA amounted to HRK 481 million
- Net debt at HRK 1,254 million and gearing is low at 9.8%
- CAPEX amounted to HRK 196 million
- In relation to 2017, domestic crude production registered a mild increase of 5% respectively
Zagreb, April 27, 2018 – INA Group revenues in Q1 2018 stayed at the similar level compared to Q1 2017, where the realized price increase offset the slightly lower oil and gas production volumes, amounting to HRK 3,705 million. CCS EBITDA decreased slightly to the HRK 482 million level, but operating cash flow stayed strong at HRK 337 million in Q1 2018.
Exploration & Production benefited from the positive external environment with 29% higher realized hydrocarbon price and consequently EBITDA increased by 14% to HRK 732 million. Refining Marketing incl. Retail CCS EBITDA excl. special items in Q1 2018 turned to negative HRK (145) million. The less favorable environment together with planned maintenance activities, because of which Rijeka Refinery didn’t operate, resulted in lower processing level in refining, which also impacted the total sales volumes. Retail fuel sales remained stable while the non-fuel sales continued to grow.
CAPEX amounted to HRK 196 million. At the same time net debt slightly decreased and amounted to HRK 1,254 million at the end of Q1 2018 with the very low gearing below 10%.
Statement of Mr. Zoltán Áldott, President of the Management Board of INA:
“INA Group operations in Q1 2018, with the revenues level similar to the same period 2017, represent a stable result within the volatile environment. Although the first quarter was marked by the favorable Brent environment of around USD 67 per barrel, the refining environment was weak with most of the crack spreads deteriorated compared to Q1 2017. Consequently, the Refining and Marketing results turned to negative, additionally pushed by the lower plant availability caused by maintenance activities in key refining plants in Rijeka. Retail volumes remained stable, while the non-fuel sales continuously grow, in line with the strategy of expanding the offer at INA Retail sites. On the other hand, Upstream achieved better results, where higher realized prices, combined with the continuous increase in domestic crude oil production, offset natural decline from Offshore fields. Also, exploration works on Drava-02 area are in progress as planned. Similar CAPEX levels and more than stable financial position represent a good starting point for future growth.”Priloženi dokument