INA published financial results for the first half of 2014

Key achievements

  • Net profit increase by 76% when compared to the same period last year
  • Capital investments increased for as many as 33%, compared to H1 2013
  • Most of the investments went to Upstream projects in Croatia; almost HRK 440 million
  • Net debt decreased by 18% while net gearing decreased from 25.8% to 24.3%,
  • INA continued with the trend of reversing the natural production decline trend on existing domestic field and for the first time in ten years recorded an increase in crude oil production from domestic fields.

Zagreb, 30 July 2014 – In the first six months of 2014, INA Group recorded EBITDA[1] of HRK 1.47 billion and net profit of HRK 372 million. Net sales revenues amounted to HRK 11.76 billion.

The Company continued with intensified investments in the first six months which amounted to HRK 665 million. Majority of investments, same as in 2013, went to upstream projects in Croatia, in which almost HRK 440 million was invested.
For the first time in the past ten years INA recorded an increase in the crude oil production from domestic matured fields while an increase of 3% was recorded in total production of hydrocarbons.
By further net debt fall for 18% and by decreasing the net gearing, from 25.8% to 24.3%, when compared to H1 2013, Group’s financial position was additionally improved.
Commenting the half-year results, INA’s President of the Management Board, Mr Zoltán Áldott’s, said With continuous and conscious management efforts INA delivered improved operating and net profits for H1 2014, effectively mitigating the adverse effects of still difficult market conditions and regulatory changes that had negative impact on our upstream and gas business.
We have strengthened our financial position further while increasing our capital investments by as much as 33%, primarily in our upstream segment which was also reflected in increasing crude oil production from existing domestic fields and temporarily reversed production decline as a result of our intensive well workover program. Additional upside in the start of production on Izabela filed will be visible from the coming period.

In downstream business we further demonstrated improvement of the sale structure and cost control, but these efforts were not able to mitigate strong negative influence of lower average crack spread and sales volumes related to deepening economic crisis on core markets. In retail sizeable modernization activities and efforts aimed at increasing the service level provided for solid business operations despite a shrinking market.”

[1] EBITDA = EBIT + Depreciation + Impairment + Provisions

Presentation Financial results for H1 2014DocumentsDocumentsDocuments