INA’s financial position remains stable
- Despite the oil prices stability, significant decrease in gas prices impacted the overall INA Group result in the first half of 2024. EBITDA was 16% lower; however, CCS EBITDA excl. special items remains strong at the level of EUR 159 million, mere 3% lower compared to same period last year.
- In Exploration and Production, the production was 7% lower compared to H1 last year, in line with the natural production decline, although the Egyptian oil production remained stable.
- Refining and Marketing incl. Consumer Services and Retail segment result improved mainly due to positive market trends and better wholesale margins. Following turnaround works and parallel implementation of various energy efficiency projects, Rijeka Refinery started up in Q2 2024.
- Consumer Services and Retail sales volumes increased by 8% compared to H1 2023, with higher realization on core markets. On top of higher fuel sales, non-fuel margin continued to grow (+37%).
- Overall capital expenditures amounted to EUR 160 million and increased compared to H1 2023. INA’s most strategic project – Rijeka Refinery Upgrade – reached 89% of total completion.
Key figures:
- Net sales revenues amounted to EUR 1.7 bln
- CCS EBITDA amounted to EUR 159 mln
- CAPEX amounted to EUR 160 mln
Zagreb, 31 July 2024 – Despite the oil prices stability, significant decrease in gas prices impacted the overall INA Group result in the first half of 2024. EBITDA was 16% lower; however, CCS EBITDA excl. special items remains strong at the level of EUR 159 million in H1 2024, mere 3% lower compared to same period last year.
Exploration and Production EBITDA was lower following lower gas price and natural decline of production, EUR 158 million in H1 2024. Production was 7% lower compared to H1 last year, in line with the natural production decline and , although the Egyptian oil production remained stable with additional gas and condensate contribution.
Refining and Marketing incl. Consumer Services and Retail segment result improved mainly due to positive market trends and better wholesale margins. Following turnaround works and parallel implementation of various energy efficiency projects, Rijeka Refinery started up in Q2 2024. Consumer Services and Retail sales volumes increased by 8% compared to H1 2023, with higher realization on core markets. On top of higher fuel sales, non-fuel margin continued to grow with 37% margin increase. In line with mentioned positive trends CCS EBITDA of the segment turned positive at EUR 44 million, while Simplified Free Cash Flow remained negative at EUR (74) million in H1 2024, following increased investment activities of EUR 118 million in H1 2024.
Overall capital expenditures amounted to EUR 160 million and are increased compared to H1 2023, majority of which was spent in Refining and Marketing incl. Consumer Services and Retail. Rijeka Refinery Upgrade Project reached 89% of total completion, with several other investment projects completed. Net debt for H1 2024 amounted to EUR 497 million with gearing ratio of 25.5%.
Statement of Zsuzsanna Ortutay, President of the Management Board of INA:
“The first half of 2024 in INA Group was marked by stable results across all business segments, continuation of strong investment cycle and a strategic expansion into the renewable energy sector. Despite the oil prices stability, significant decrease in gas prices did impact the overall result, however, CCS EBITDA remains strong, mere 3% lower compared to same period last year.
Exploration and Production efforts to compensate natural production decline include the purchase of 40% in the Sava-07 Croatian onshore block and the expansion to new business areas such as geothermal. We have licenses for geothermal exploration in two areas in Croatia, and additionally, we are facilitating the green transition for external parties through geothermal services from Crosco.
Refining and Marketing incl. Consumer Services and Retail result improved in H1 2024 following strong margins and Retail performance. After the successful finalization of Rijeka Refinery turnaround, full operation started in Q2 2024 ensuring own product availability for season peak. In Retail, the non-fuel segment has been growing each year, with strong 37% growth achieved in H1 2024 compared to same period last year.
Stable results from our core business activities enable us to continue investing in renewable energy projects. Building on the success of our two operational solar power plants (Sisak and Virje), we are now entering new frontiers with the construction of a green hydrogen plant in Rijeka Refinery and a biomethane production facility in Sisak.”