INA – Industrija nafte, d.d. has published financial results of INA Group for the first quarter of 2012. Net profit of HRK 630 million (excluding special items) in the first quarter of 2012 represents an improvement in comparison to the results from the last quarter, when the net profit amounted to HRK 248 million (excluding special items), as a result of net foreign exchange gains.
INA Group results in Q1 2012 have been significantly influenced by the external macro environment, the market, regulatory and political changes in INA’s key areas of operations. Operations in Croatia have been suffering from the tightened marked demand for crude oil products and regulatory constraints in the respect of the capped natural gas prices for households and small industrial companies, while in the international arena INA did not receive any revenues from its Syrian operations in the first quarter of 2012. Management’s efforts, however, remained directed towards increasing the efficiency and expenses control, which resulted in a decrease of operational costs.
Results for the first quarter show that EBITDA (excluding special items) amounted to HRK 1.475 million, which represents a slight increase in comparison with the last quarter of 2011, when it amounted to HRK 1.328 million. Operating profit excluding special items amounted to HRK 834 million and has remained at approximately the same level as in the last quarter.
Exploration and Production’s operating profit, excluding special items amounted to HRK 1,032 million, which represents a decrease when compared to the same time last year. The result was influenced by the temporary halt of activities in Syria and decrease of gas production in Northern Adriatic. Along with that, a limitation of the gas prices resulted in a loss of HRK 382 million in the first quarter of 2012. Refining and Marketing had a loss in the amount of HRK 52 million, which nevertheless represents an improvement when compared to the same period last year. Retail segment generated operating loss (excluding special items) in the amount of HRK 7 million, but despite lower sales, the introduction of CLASS fuels and decrease of operating costs, including the optimization of the retail network, have contributed to results improvement when compared to those from the same period in 2011.
Commenting on the financial results, president of the Management Board, Zoltán Áldott said: “INA Group delivered strong results in Q1 2012 – despite negative external developments and no revenues received from Syria – mainly as a result of management’s significant efforts to further optimize operations and to increase efficiency.
Backed by a strengthened financial background, INA prepared a strong investment cycle for the coming period. The retail modernization program is being carried in an intensified manner, as a result of which by the end of 2012, INA will have the largest number of new or modernized filling stations in Croatia that will ensure maintaining our market leading position. After a number of large scale investments in the refineries have been completed in 2011, further investments are being carried out to increase operational efficiency, while INA is also working together with local communities to secure the necessary permits to kick-start the residue upgrade project in Rijeka refinery. INA also puts strong effort into exploration activities, aiming at drilling 4-6 exploratory wells in Croatia in 2012, meanwhile the EOR project with investments worth over HRK 500 mn in a three year period is also in progress.
Despite the severe weather conditions, INA ensured security of gas supply to the consumers of Croatia during the previous period, by providing additional gas quantities through the interconnector built by Plinacro and MOL between Croatia and Hungary. The management of INA is committed to implement actions that ensure future growth and development of the company and Croatia as its host country, with strong focus on value creating investments in all business areas.”