More than tripled investment level indicates stable INA Group Q1 results
- High hydrocarbon price levels have continued, reflecting the increased geopolitical risk and uncertainty regarding effects of sanctions on global energy markets.
- In such environment, results show a strong INA Group CCS EBITDA in Q1 2022.
- Exploration and Production revenues and EBITDA more than doubled, significantly overcompensating the effect of expected natural production decline.
- Investment activities intensified and CAPEX spending increased threefold compared to Q1 2021 with CAPEX level of HRK 846 million:
- Rijeka Refinery Upgrade Project, as the main strategic investment, continues with construction works and equipment delivery to the site.
- Also, Croatian offshore campaign continues with two new wells finished, one of them already connected to production system of the Ika field.
Key achievements:
- Net sales revenues amounted to HRK 6 billion
- Net profit almost HRK 600 million
- EBITDA amounted to more than HRK 1.1 billion
- CAPEX more than tripled compared to Q1 2021, to HRK 846 million
- Simplified Free Cash Flow amounted to HRK 149 million
Zagreb, April 28, 2022 – High hydrocarbon price levels have continued in Q1 2022 reflecting the increased geopolitical risk and uncertainty regarding effects of sanctions on global energy markets. In such environment, results show a strong INA Group EBITDA in Q1 2022 amounting to more than HRK 1.1 billion.
Exploration and Production revenues (HRK 1.4 billion) and EBITDA (HRK 876 million) roughly doubled in the supportive price environment, significantly overcompensating the effect of expected natural decline of production.
Negative cash flow of Refining and Marketing incl. Consumer services and Retail segment was partially reduced by the improved CCS EBITDA that amounted to HRK 238 million on the back of better captive market fuels and natural gas sales.
Investment activities intensified and CAPEX spending increased threefold compared to Q1 2021 with CAPEX level of HRK 846 million, of which majority spent in Refining and Marketing. Rijeka Refinery Upgrade Project, as the main strategic investment, continues with construction works and equipment delivery to the site. Also, Croatian offshore campaign continues with two new wells finished, one of them already connected to production system of the Ika field.
Statement of Mr. Sándor Fasimon, President of the Management Board of INA:
„Global markets continue their volatile trend, in line with the high level of uncertainty in global economy and trade, although their level shows a more favourable environment for oil and gas companies. Sharp rise in both oil and gas prices is the main driver of the strong revenue growth in the entire oil and gas industry.
In such environment, Exploration and Production stays the biggest cash generator of the company. Offshore campaign is the main investment activity of the segment, aimed at moderating natural decline and assisting the safe market supply from domestic sources, important in the time of rising geopolitical challenges.
Despite the increased overall prices, Customer Services and Retail sales stayed strong and no major disturbances in the market supply occurred, proving INA’s reliable service on the core markets, regardless of the market uncertainty. As a result of these factors INA EBITDA exceeded HRK 1.1 billion in just first quarter of 2022, with the usually stronger summer quarters yet to come.
Period of strong results is also used to strengthen INA’s position in the coming years. Total investment level increased more than three times compared to the same period 2021, with the majority spent in Croatia. Rijeka Refinery Upgrade Project continues as the largest investment of INA, with the engineering almost finished and delivery of facility on site.“