INA’s financial position remains robust
• Macroeconomic stabilization of hydrocarbon prices continued throughout 2023 so did the price environment decrease for final products, compared to the first nine months 2022. This resulted in 45% lower INA Group EBITDA compared to same period 2022 (EUR 341 million), with net profit of EUR 158 million.
• Following the external environment, EBITDA of Exploration and Production segment declined by 43% to EUR 293 million, but it is still the main cash generator. Natural decline of production was 6%, expected and in line with the portfolio maturity and turnaround of gas treatment facilities although some increase of production is visible in Egypt due to development activities.
• Refining and Marketing incl. Consumer services and Retail segment operations are adversely impacted by lower margin environment. Despite the market challenges, safe supply was ensured also in the tourist season, with the usual peak of sales. Retail fuel sales volumes are 22% higher in the first nine months 2023 and non-fuel margin retail sales is 31% higher.
• Investment activities resulted in EUR 282 million spending, which is 11% increase compared to the first nine months 2022, out of which EUR 85 million is related to acquisition of additional 25.25% share in OMV Slovenia, which increased INA’s share in this company to 33 percent.
• Rijeka Refinery Upgrade Project reached 81% of total completion as the key investment project while Exploration and Production investments increased by 11% due to higher Croatia Onshore exploration activities.
Key figures:
- Net sales revenues amounted to EUR 2.9 bn
- EBITDA amounted to EUR 341 mn
- Investments amounted to EUR 282 mn
Zagreb, 27 October 2023 – Despite some volatility macroeconomic stabilization of hydrocarbon prices continued throughout 2023. This brought 33% lower total realized prices, especially gas prices. Price environment for final products also decreased compared to the first nine months 2022, jointly resulting in 45% lower EBITDA compared to same period 2022. EBITDA of INA Group in the first nine months 2023 amounted to EUR 341 million, with net profit of EUR 158 million.
Following the external environment, EBITDA of Exploration and Production segment declined by 43%, while at the level of EUR 293 million it is still the main cash generator of the company. Natural decline of production was 6%, expected and in line with the portfolio maturity and turnaround of gas treatment facilities, although some increase of production is visible in Egypt due to development activities.
Refining and Marketing incl. Consumer services and Retail segment operations are adversely impacted by lower margin environment. Despite the market challenges, safe supply of the market was ensured also in the tourist season, with the usual peak of sales. Retail fuel sales volumes increased by 22% comparing first nine months of 2023 and 2022, however retail fuel price regulation continued to depress the segment’s financial result. Rijeka Refinery is in operation, with significant positive contribution to the result. Strong tourist season alongside with additional offer expansion resulted in further growth of non-fuel margin (+31%).
Investment activities resulted in EUR 282 million spending, which is 11% increase compared to the first nine months 2022, out of which EUR 85 million is related to acquisition of additional 25.25% share in OMV Slovenia, which increased INA’s share in this company to 33 percent. Rijeka Refinery Upgrade Project reached 81% of total completion as the key investment project while Exploration and Production investments increased by 11% due to higher Croatia Onshore exploration activities.
Financial position remains robust with net debt on the level of EUR 284 million.
Statement of Zsuzsanna Ortutay, President of the Management Board of INA:
“2023 is marked by the stabilization of hydrocarbon prices, but also by investment cycle throughout INA segments. Rijeka Refinery Upgrade Project, key project for INA long term refining operations sustainability, continues with the overall project completion reaching 81%. Following the construction of two solar power plants, INA takes a further step in the direction of new and renewable energy sources, with two exploration geothermal concessions won in Croatia. INA’s investments resulted also in increase of production in Egypt by almost 10%, compared to first nine months 2022. The Egyptian East Damanhur concession, acquired in 2020, started up with gas production in September. Also, a major regular turnaround on the Croatian gas facilities has been successfully completed.
Retail results are sturdy, supported by strong tourist season and non-fuel margin growing by 31% compared to the first nine months 2022. Although the logistics during the peak of tourist season was challenging, safe and stable supply was maintained. INA welcomed the cancellation of regulation on the sale of its gas production in July, however the company remains exposed to continued fuel sales margin regulation, resulting in continued opportunity losses.
In the first nine months of 2023 INA achieved EBITDA of EUR 341 million and net profit of EUR 158 million, a strong result when looking at all the adverse external factors, lower prices and regulation being major among them.”