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- INA Group’s operating profit in H1 2015 increased by 33% compared to the same period of 2014 and amounted to HRK 714 million
- Continued trend of growth of domestic crude production: increase of almost 20% compared to H1 2014
- Stable financial position of the Company with a further 14% reduction in net debt compared to H1 2014
- Domestic investments account for over 82% of CAPEX which amounted to HRK 549 million
- Refinery production increased by 3% and refined product sales by 4%
Zagreb, 30 July 2015 – INA Group’s CCS EBITDA in H1 2015 amounted to HRK 1,636 million, which is 4% more than in the same period of 2014, while the CCS operating profit reached HRK 819 million, increasing by 27 percent in relation to H1 2014. Net profit amounted to HRK 328 million. Total investments reached HRK 549 million, of which HRK 453 million was invested in Croatia and HRK 96 million abroad.
INA Group’s result in H1 2015 proved stable in the challenging environment, registering a CCS EBITDA increase of 4% in spite of the strongly deteriorated environment for Exploration and Production as the primary cash generator of the Company with almost halved oil prices. Also, net debt was decreased by an additional 14% in comparison to H1 2014, improving the Company’s financial position and debt/equity ratio.
In the Exploration & Production segment the trend of domestic crude production growth continues in spite of lack of new exploration fields and it contributed with an almost 20% increase to an overall 6% increase in total hydrocarbon production. This can be attributed to continuing well workovers, improving well performance and additional production from Hrastilnica. Natural gas production also increased by 4% compared to H1 2014. EBITDA reached HRK 1,635 million, while the overall performance was negatively affected by reduced crude prices and unfavorable regulatory changes through additional reduction in the regulated gas price and effect of doubled royalty rate. Exploration & Production segment’s CAPEX in period H1 2015 amounted to HRK 335 million. Capital investments in Croatia amounted to HRK 252 million and capital investments abroad HRK 83 million.
Refining & Marketing (including Retail) CCS EBITDA improved by 94 percent in comparison to H1 2014 and was decreased to HRK (22) million. This improvement was driven by external factors such as decrease in the Brent price which positively contributed to lower material costs and lower costs of own consumption, combined with higher sales volume and a better yield structure in the refineries, as well as retail operations achieving a higher retail fuel unit margin. Capital expenditures in H1 2015 amounted to HRK 137 million, out of which HRK 100 million in the R&M segment and the remaining in Retail segment.
President of the Management Board of INA Mr. Zoltán Áldott said that INA significantly increased operating results H1 2015 in spite of the heavily deteriorated oil price environment. Total hydrocarbon production increased by 6%, with domestic crude going almost 20% up. Overall results of Upstream suffered from the drop in realized prices, although somewhat compensated by strengthening of USD. Downstream performance, on the other hand, improved significantly in the changed price environment, although it still produced losses. Increased production and sales, together with big positive impact on own consumption and losses resulted in improved results. Nevertheless, optimization of refining and retail operations remains a constant task for INA management in order to ensure long term sustainability of business. Retail sales remain stable and are marked by the decrease in motor gasoline sales and an increase in diesel sales, confirming the dieselisation trend.
“Investments remain strong over half a billion kuna since we have not scaled back our investment projects given the fact that they show also robustness in the current environment”, Mr. Zoltán Áldott added.