FINANCIAL RESULTS Q1–Q3 2024

Improved INA Group performance in the first nine months

  • Following the improvement in retail and wholesale price environment, the overall INA Group performance improved compared to the same period last year with Clean CCS EBITDA amounting to EUR 344 million in Q1-Q3 2024.
  • Exploration and Production EBITDA was lower following the lower gas price and natural decline of production, EUR 234 million in Q1-Q3 2024. Capital investments were focused to Croatia with 4 new wells drilled on Sava-07 Exploration Block where INA acquired 40% of non-operated working interest.
  • Refining and Marketing incl. Consumer Services and Retail segment result improved mainly due to positive market trends and better wholesale margins. On top of higher fuel margins, non-fuel margin continued to grow with 30% margin increase.
  • Overall capital expenditures amounted to EUR 215 million and increased compared to Q1-Q3 2023. Rijeka Refinery Upgrade Project reached 91% of total completion.
  • Net debt increased to EUR 618 million with gearing ratio of 28% following the strong investment cycle.

Key figures:

  • Net sales revenues stable to almost EUR 2.9 bln
  • CCS EBITDA improved to EUR 344 mln
  • CAPEX increased to EUR 215 mln

Zagreb, 30 October 2024 – Following the improvement in retail and wholesale price environment, the overall INA Group performance in the period of Q1-Q3 2024 improved compared to the same period last year with Clean CCS EBITDA amounting to EUR 344 million, which was 5% higher than in Q1-Q3 2023 period.

Exploration and Production EBITDA amounted to EUR 234 million in Q1-Q3 2024 following the lower gas price and expected natural decline of production. Production was lower by almost 5% compared to the same period last year, in line with the natural production decline, water cuts and reservoir performance issues on main gas fields and lower Offshore contribution. Capital investments were focused to Croatia with 4 new wells drilled on Sava-07 Exploration Block where INA acquired 40% of non-operated working interest.

Refining and Marketing incl. Consumer Services and Retail segment result improved mainly due to positive market trends and better wholesale margins. Consumer Services and Retail sales volumes increased by 6% compared to same period last year, with higher realization on core markets and seasonality effect. On top of higher fuel margins, non-fuel margin continued to grow with 30% margin increase. In line with mentioned positive trends, CCS EBITDA of the segment amounted to EUR 123 million, while Simplified Free Cash Flow remained negative at EUR (20) million, following continued intensive investment activities in Rijeka Refinery.

Overall capital expenditures amounted to EUR 215 million and increased compared to Q1-Q3 2023, majority of which was spent in Refining and Marketing incl. Consumer Services and Retail. Rijeka Refinery Upgrade Project reached 91% of total completion. Net debt amounted to EUR 618 million with gearing ratio of 28% following the strong investment cycle.

Statement of Zsuzsanna Ortutay, President of the Management Board of INA:

“Third quarter of 2024 brought improvement in retail and wholesale price environment, with stable oil and gas prices. Security of supply remains unquestionable with stable Rijeka Refinery operation and ability to supply the growing demand on the market without material interruptions, even during seasonal peaks with higher sales during the tourist season compared to 2023. INA’s result remained strong, with Exploration and Production continuing as largest cash generator, however with growing impact of Retail segment. Non-fuel sales growth successfully continued beyond fuel sales due to expansion of offer and improved sales.

Four new exploration wells were drilled on block Sava-07 with notice of commercial discovery securing once again importance of INA’s operations for energetic supply of Croatia. Period of strong investments continued with CAPEX spendings exceeding the first nine months of 2023. The Rijeka Refinery Upgrade Project continues as INA’s largest investment in the history, reaching 91% of total completion. We have created conditions for successful implementation and expect the project to be completed in the shortest possible time frame. In addition, with the progress in biogas and hydrogen production projects, INA takes a further step towards diversification to renewable energy.

Despite the less favourable external environment, INA utilised market movements and in the first nine months of 2024 achieved a strong result with CCS EBITDA excl. special items of EUR 344 million and net profit of EUR 165 million.” 

FINANCIAL RESULTS Q1–Q3 2024