In the first nine months of 2010 INA Group has significantly improved its overall results compared to the same period last year, achieving HRK 4.3 billion EBITDA1 and HRK 2.4 billion operating profit excluding special items2 from continuing operations. This is mainly result of increased hydrocarbon production from North Adriatic and Syria proving efforts put into major investment programs during the crisis, while results also benefited from improving economic environment through increasing crude oil prices and higher realized refinery margins. In addition management’s focus on efficiency improvement resulted in significant cost saving through reduction of operating expenses.
Taking into account the Group’s overall operations realised net profit amounted to HRK 559 million in Q1-Q3 2010, out of which net profit from continuing operations was HRK 1,019 million while gas trading activities generated net loss of HRK 460 million.
“In the first nine months of 2010 our efforts put into our key investment programs already started to pay off: we boosted operating results mainly resulting from higher upstream production from Syrian and North Adriatic fields. As a result of the management’s commitment related to improving efficiency and reducing operating expenses, positive net income has been achieved for the first time in the past two years. In addition we fully repaid overdue tax obligations and related interests towards the state budget and municipalities.
In Upstream business we are nearing completion of Syrian Hayan gas plant, which will enable us to significantly increase gas and condensate production volumes in 2011. Our competitiveness in Downstream, following the successful introduction of European quality fuels (Euro V) in our whole network will improve further significantly in Croatia and the region after the inauguration of the new hydrocracking complex in Rijeka (expected in the fourth quarter) that will ensure bringing further value to customers, shareholders and other stakeholders.
We are committed to remain one of Croatia’s top investors. Improving our financial position still remains a key task for the management through optimization of the current debt structure and further efficiency improvement steps.“ – Mr. Zoltán Áldott, President of the Management Board commented.
Presentation of 2010 Q1‐Q3 results and activities (October 29, 2010)