Financial Results Q1-Q3 2017

Published: 27.10.2017. / Click here for announcement in word
INA’s Q1-Q3 2017 results demonstrate strong operational performance
 
 Key achievements
  • INA Group’s EBITDA[1] amounted to HRK 2,322 million, 65% above the level in Q1-Q3 2016, while net profit amounted to HRK 1,212 million
  • Net debt down to HRK 1,241 million and gearing at a historically low level of 9.7%
  • CAPEX amounted to HRK 824 million
  • Domestic crude production remains stable, while domestic gas production onshore went up by 7% in relation to Q1-Q3 2016
  • Refinery production increased by 10%, and refined product sales grew by 13%
 
Zagreb, October 27, 2017 – INA Group’s performance in Q3 2017 reveals that the Group continues to operate on successful path. In first nine months of 2017 EBITDA grew by 65%, reaching HRK 2,322 million, delivering operating cash flow of HRK 2,094 million, an 84% increase compared to the same period last year, demonstrating strong operational performance. Net profit amounted to HRK 1,212 million.
 
Exploration & Production continues to be the main generator of the Group’s results with operating profit growth of 52% to the level of HRK 1,366 million. Refining & Marketing incl. Retail realized significant improvements in its performance with EBITDA reaching HRK 564 million for the first nine months of the year. The Refinery & Marketing business benefited from continuing period of positive external environment, mainly in the form of stable DTD Brent prices, higher diesel and motor gasoline crack spreads coupled with higher processing level in refineries and increased sales volumes on domestic and export markets. Total retail sales volumes went up by 6% compared to the first nine months in 2016, supported by retail network growth and active sales of Class Plus fuel, as well as non-fuel sales increase.
 
CAPEX in Q1-Q3 2017 amounted to HRK 824 million, witnessing strong investments in Q3 2017 with 21% increase compared to Q3 2016. Net debt decreased to HRK 1,241 million with gearing further declining to a historically low level of 9.7%.
 
President of the Management Board of INA Mr. Zoltán Áldott said: “In the first nine months of 2017 INA Group delivered very strong figures across all businesses. With sales revenues increasing by 23%, the Group managed to achieve EBITDA growth by 65% demonstrating strong performance as well as improvements across all business segments. EBITDA excl. special items reached HRK 2,304 million compared to HRK 1,688 million in the first nine months of 2016.
Positive external environment affected both Upstream and Downstream. Although Upstream continues to be the main contributor to the Group’s profit, Downstream realized significant improvements in its performance capturing the period of positive external environment. These effects combined for positive operating results generating positive free cash flow.
Upstream realized a 19% growth in terms of EBITDA compared to comparable period last year. Although facing natural production decline on international concessions and offshore, domestic crude oil production remained solid as a result of continuing investments in EOR project and other development projects. Additionally, stabilized performance of our oil service company CROSCO encourages positive prospects for the future.

Downstream delivered HRK 564 million EBITDA and positive cash flow of HRK 212 million, showing the best results in the last ten years. In line with strategic development, Downstream managed to increase total sales volumes across all markets. Retail continued with stable operating performance with the expansion in both regional network and non-fuel, assuring continuously stable results.
Strong balance sheet with historically low gearing of 9.7% shows that the company made very thoughtful choices in resource allocation and that we prepared and strengthened our company for future challenges.
95% of the Group capital investments in the first nine months of this year are related to domestic projects, confirming that the Group is still one of the major investors in Croatian economy.”
 
[1] EBITDA = EBIT + Depreciation + Impairment + Provisions
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