Zagreb, October 31 – In Q1-Q3 2011 period, INA Group continued with strong results. Net profit of the first nine months 2011 reached HRK 2,072 million, representing an increase of HRK 1,512 million over the same period last year when it amounted to HRK 560 million.
In mentioned period INA significantly increased EBITDA and operating profit compared to the same period of the previous year. The improved results were driven by mixed external environment, more efficient operations of businesses and positive contribution of key projects. Exploration and Production segment was the main generator of enhanced results in Q1-Q3 2011 period, as higher crude oil prices together with increased average daily hydrocarbon production supported its results. Still very challenging refining environment (with decreased regional market demand and depressed refinery margins) as well as longer than planned period of optimization which appeared during putting in operation the hydrocracker in Rijeka Refinery and fire in Sisak Refinery in June, were the major drivers of Downstream division’s negative results in Q1-Q3 2011 period.
In the third quarter of 2011, INA Group reached EBITDA (excluding special items) in the amount of HRK 1,680 million, representing an improvement of 10% when comparing to the same period of the previous year, primarily as result of increased realized hydrocarbon price together with higher average daily hydrocarbon production.
In this opportunity, Mr Zoltán Áldott, President of the Management Board of INA underlined that INA has delivered strong results once again showing that the company is on the path of delivering value to its shareholders.
„Our management’s strong focus on wholesale and retail fuels sales is already visible in our latest results. We are also committed to further continuing to improve the efficiency of operations by controlling costs and further improvement of procurement processes, with an aim of reaching additional savings. At the same time, we are also identifying potential areas for new investment opportunities to create further value to our shareholders. In recent period INA has significantly improved financial position by reducing the level of net debt and reducing the gearing ratio, securing future liquidity to finance new growth projects. Furthermore as a result of recovery efforts in the past 4 months, the Sisak refinery is expected to be operational again in November 2011.
However, we are aware of the challenges that lay ahead of us in terms of competition and tightening of operating conditions in foreign concessions on the back of political turmoil in the Middle East and North Africa region. We are continuously and carefully analyzing these developments, including the restrictive international measures against Syria that might have adverse effects on INA’s revenues and production levels.” – concluded Mr Áldott.