INA announced financial results for the first half of 2013

  • • Positive results achieved in both operating and net profit

    • Strengthened presence in key export markets of Slovenia and Bosnia and Herzegovina

    • Increased capital investments

    Zagreb, 29 July – INA announced INA Group’s financial results for the first half of 2013. In the first six months of 2013, the Group achieved positive results in operating and net profit, which amounted to HRK 610 million and 443 million, respectively.

    This result was largely driven by improvements in efficiency, especially in controlling the materials and services expenses, energy expenses and in revenue optimization. Although the economic environment remained challenging, due to constant improvements over the previous quarters INA Group’s EBITDA for the first half 2013 amounted to HRK 1.75 billion. INA Group’s revenues from key markets amounted to HRK 13.4 billion.

    Despite the unfavorable economic environment, INA improved the product structure and the general level of performance, supported by strong cost controls. The Company strengthened its presence in key export markets and more than tripled sales in Slovenia and achieved sales growth of 5% in Bosnia and Herzegovina, while at the same time maintained a leading position in the domestic market.

    Capital expenditures in the first half of 2013 were increased by 23% year on annual basis, reaching HRK 500 million, driven by higher investments in second quarter as a result of accelerated activities in all business segments. INA intensified domestic exploration and production activities, particularly on-shore Croatia, where preparations for four new exploration wells were completed.

    At the same time, INA boosted the modernization of its retail network along with environmental and efficiency improvements in the Refining and Marketing Segment. New initiatives for Refining and Marketing planned for 2013 year include preparatory activities for the residue upgrade project in the Rijeka Refinery, and HSE and energy efficiency programs with the aim of improving internal operational efficiency. Within the Retail modernization project, INA has so far modernized 132 petrol stations.

    Commenting on the financial results, President of INA’s Management Board, Zoltán Áldott, reminded that the economic environment remained challenging in the first six months of 2013 and emphasized the use of internal improvements as imperative to maintain a stable positive result. He added that in the first six months of the 2013 investments rose by 23% compared to the same period in 2012, amounting to HRK 500 million.

    “Largest share of capital investment relates to the Exploration and Production Segment, as a key growth segment for the entire Group. We have continued with the intensive drilling campaign on-shore Croatia and placed emphasis on new exploration and development projects in the northern Adriatic, under which we began exploratory drilling with the Labin platform. Exploration activities were intensified in Egypt as well, where INA increased its stake in the concession East Yidma and Disouq. In parallel with investments in exploration and production, pending are the projects for implementation of environmental and efficiency improvements in Rijeka and Sisak refineries, as well as preparatory activities for the residue upgrade project in Rijeka and continued modernization of retail network, in order to ensure future growth,” said Mr. Áldott.