ZAGREB, February 20, 2018 - In 2017, the INA Group made 18.5 billion kuna in revenue, 20% more than in the previous year, and its net profit grew strongly as well, owing to an increase in oil prices on the global market and business optimisation, the company said in a business report.
The report, published on the Zagreb Stock Exchange website on Monday evening, shows that in 2017 the group's EBITDA (earnings before interest, taxes, depreciation and amortization) totalled 3.2 billion kuna, 52% more than in 2016.
Such strong operating results pushed net profits up to 1.22 billion kuna, as against a mere 101 million in 2016, the group said.
The group's exploration and production segment benefited from a positive external environment with oil prices in the global market being 24% higher on average. Combined with higher gas prices and a mild increase in domestic production on land, this resulted in operating profits going up 42% to 1.6 billion kuna, says the report.
The total production of hydrocarbons in 2017 dropped 5%. Compared to 2016, domestic crude oil and gas production on land rose by 2% and 3% respectively.
In the refining and marketing segment, including retail sales, better financial results were recorded as well, owing to a positive effect of the external environment with higher margins and a higher total sales volume.
In that segment, CCS (current cost of supplies) EBITDA, without one-off items, amounted to 806 million kuna, as against 350 million kuna in 2016. EBITDA in 2017 totalled 987 million kuna, while operating profits reached 263 million kuna.
Revenue totalled 16.1 billion kuna, 24% more than in 2016, owing to focus being on sales activities.
The group's report also notes that retail sales grew thanks to the expansion of the group's sales network in Bosnia and Herzegovina, and a mild economic recovery with positive developments in the sale of premium quality oils and consumer goods.
Despite the positive developments in the refining and marketing segment, including retail sales, the group's results are still burdened by the negative impact of the Sisak oil refinery's results. In 2017, the refinery had a negative financial effect on profit from the core business, amounting to 207 million kuna, and 264 million kuna in 2016, the company said.
The company’s CEO Zoltan Aldott said in a statement that the INA Group last year recorded results that were among the best in its more recent history, showing that it was capable of using the benefits of a positive external environment with higher prices. He said that the group was successful in both of its targeted business areas - growth and operating excellence and top efficiency.
Aldott underlined that derivatives wholesale had increased by 12%, retail sales by 4% and the sale of natural gas 8%. Capital investment outlays remain at a high level of 1.4 billion kuna, in line with 2016, with investments having been increased in Croatia, said Aldott.
The company's net debt was reduced to 1.39 billion kuna and the debt-to-capital ratio dropped to 10.8%.
