INA: strong net sales revenues in H1 2018
Key achievements
- Net sales revenues increased by 13% to HRK 9,495 million
- Net debt is at HRK 701 million which is 65% decrease comparing to the same period in 2017, and gearing decreased at 5.8%
- CAPEX amounted to HRK 518 million
- Operating cash flow increased by 22% to HRK 1,197 million
Zagreb, July 27th, 2018 – In H1 2018 INA Group increased its revenues by 13% to HRK 9,495 million compared to H1 2017, mainly driven by higher sales. Due to lower Refining and Marketing including Retail contribution, total CCS EBITDA decreased slightly to the HRK 1,328 million, but operating cash flow stayed strong at HRK 1,197 million in H1 2018 which is 22% increase compared to H1 2017. Net profit amounted to HRK 533 million.
Exploration and Production EBITDA excluding special items grew by 6% to HRK 1,478 million compared to the same period in 2017. CCS EBITDA of Refining and Marketing including Retail amounted to HRK 91 million in H1 2018. Planned maintenance activities in Q1 2018 impacted processing level in refining, while retail fuel sales moderately improved together with the non-fuel sales which continued to grow.
CAPEX amounted to HRK 518 million in H1 2018. At the same time net debt decreased further and amounted to HRK 701 million at the end of H1 2018 while net gearing dropped below 6%.
Statement of Mr. Sándor Fasimon, President of the Management Board of INA:
“H1 2018 showed as a positive period for overall INA results. Combination of higher sales and utilization of favorable Upstream environment helped to keep the revenues on a high level.
Domestic crude oil production continues to grow, thanks to the ongoing activities in the EOR project and additional development projects, moderating the natural decline in the gas production, expected with the mature portfolio. Finalization of our transaction with ENI for the North Adriatic concession areas will also play its role in arresting the production decline in the years to come.
Refining volumes are in line with the regular, planned maintenance activities, somewhat lower compared to comparable period 2017, but great effort is given in making the operations more sustainable. Crude basket is constantly expanded and more favorable crude types are processed.
Moderate Retail growth is in line with the seasonal movements, while constant expansion of non-fuel related services stays our priority for the upcoming period.
This relief period in the form of rather favorable external environment, at least for Upstream operations, should also be used for further streamlining of the operations and strengthening of our market position, as the volatility of the market can once again prove challenging.”