INA: increased revenues in Q1 – Q3 2018
Key achievements
- INA Group’s EBITDA[1] amounted to HRK 2,685 million
- Net debt at HRK 1,136 million and gearing is low at 8.8%
- CAPEX amounted to HRK 912 million
- In relation to Q1 – Q3 2017, net sales revenues increased by 21%
Zagreb, October 26, 2018 – In the first nine months of 2018, INA Group increased its revenues by 21% to HRK 16,227 million, compared to the same period last year. The result is mainly driven by higher refined products sales combined with higher crude oil and product prices. Total CCS EBITDA excluding special items decreased by 10% compared to the same period of 2017 and amounted to HRK 2,217 million due to lower contribution of Refining and Marketing including Retail. EBITDA was at the similar level compared to Q1 – Q3 2017 and amounted HRK 2,685 million.
Exploration and Production EBITDA excluding special items benefited from significantly higher realized hydrocarbon price and amounted to HRK 2,162 million, which is 11% growth compared to the same period in 2017, while maturing of the production assets expectedly brought a 9% drop in hydrocarbon production. CCS EBITDA of Refining and Marketing incl. Retail amounted to HRK 339 million. Due to higher processing level in refining in Q3 2018, EBITDA increased by 34% and amounted to HRK 807 million despite lower processing level in the first part of 2018 due to planned maintenance activities. Retail fuel sales moderately improved with the growth of the network.
Compared to the Q1 – Q3 2017, CAPEX increased and amounted to HRK 912 million with a continued focus on Croatian investments. At the same time net debt decreased to HRK 1,136 million at the end of Q3 2018, with net gearing below 9%.
Statement of Mr. Sándor Fasimon, President of the Management Board of INA:
“INA operations in 2018 continue to be positively impacted by oil prices increase and favorable Upstream environment. The total effect on INA revenues was significant, with more than 20% increase, and profit even surpassed the comparable 2017 level.
Upstream operations continue to address the natural decline with ongoing EOR activities and well workover campaign. All these activities kept the domestic crude oil production stable, while the natural decline in the gas production proves more challenging to moderate, at least until the finalization of our transaction with ENI for the North Adriatic concession areas.
Refining volumes increased in Q3, offsetting the earlier regular maintenance activities and bringing the 2018 throughput to somewhat higher level in relation to the comparable period of 2017. Crude basket continues to be expanded thus altering the production yield, but we are also processing more favorable crude types.
Despite the improved Dowstream EBITDA, its cash flow remains negative, emphasizing the necessary change toward sustainable operations and prudent investments in the ever changing market conditions. We are focused on sustainable, profitable return-providing investments which would increase our competitiveness on the regional market.
Moderate Retail growth is in line with the seasonal movements, while growth on B&H market shows strong INA position on core markets. Positive result and continuous sales increase are the best indicators that INA provides high quality services and meets the needs of the market.”Documents