ZAGREB, February 22, 2019 - The INA oil and gas company generated a net profit of 1.18 billion kuna in 2018, down 3.7% from 2017, its financial statement showed on Thursday.

Total revenue increased by 19.5% to 23.35 billion kuna, while expenditure reached 21.83 billion kuna, up 21.5% on the year.

EBITDA rose by 3.0% to 3.49 billion kuna and net sales revenue increased by 20% to 22.35 billion kuna. Capital expenditure amounted to 1.82 billion kuna, an increase of 30% on the year.

The positive business results were driven by growth in all segments, particularly due to higher hydrocarbon prices and higher sales.

Sandor Fasimon, president of the management board, said that the INA Group had once again achieved a very strong result.

INA utilised the market conditions and increased both its sales and EBITDA, with revenues growing by a further 20% on the strong 2017 result to over 22 billion kuna. Upstream, as the main cash generator of the company, benefited from the increased Brent price, Fasimon said.

He warned that the natural decline of the production remains a challenge due to the maturity of company's upstream assets, adding, however, that multiple projects aimed at addressing this were underway.

He said that downstream operations remain burdened with the negative cash generation of refining operations, but that the increase in capital expenditure showed INA's commitment to maintaining a vertically integrated business model. The group's capital expenditure increased by 30%, mostly in refining.

As for retail operations, Fasimon said that the expansion of the network in Montenegro was evidence of INA’s future focus on regional markets.

More news on INA can be found in the Business section.

ZAGREB, January 30, 2019 - The government decided on Wednesday to invite bids for licenses for oil and gas exploration and exploitation in the Dinaric Alps, with Environmental Protection and Energy Minister Tomislav Ćorić saying it was part of the government's activities to boost Croatia's energy autonomy.

Bids will be invited for four areas covering 12,134 square kilometres in total in Karlovac, Lika-Senj, Primorje-Gorski Kotar, Zadar, Split-Dalmatia and Šibenik-Knin counties. Exploration is to last five years. It excludes national parks and areas off the coast and the Bosnian border.

The tender will be advertised by the Croatian Hydrocarbon Agency and the bids will be assessed by a commission to be appointed by Ćorić. At his ministry's proposal, the government will decide on the issue of an exploration and exploitation license for each of the four areas for a maximum 30 years.

The exploration in the Dinarides is aimed at reducing the fall in gas and oil production in Croatia, the government says.

Ćorić said the exploration would be conducted under the strictest ecological standards and in communication with local communities. Recently he said the exploration in the Dinarides would not harm tourism development.

More news on the oil and gas exploration in Croatia can be found in the Business section.

ZAGREB, November 21, 2018 - Minister of Environment and Energy Tomislav Ćorić called on Wednesday on all those concerned to join the discussion of the Green Book, which will be the basis of preparing an energy strategy, and announced that a call for bids for hydrocarbon exploration and exploitation in the Dinaric Alps could be expected soon.

The Green Book, which is currently under public consultation, will serve as a platform to prepare an energy strategy of Croatia until 2030 with an outlook to 2050, and I am calling on all those interested to join and make a contribution to Croatia's energy future, Ćorić said in an address to the 4th international oil conference organised by the JANAF and Transneft oil companies.

Speaking about the ministry's work over the past year, Ćorić recalled that parliament had adopted a law on hydrocarbon exploration and exploitation which opened a new chapter in the context of exploration and exploitation. He recalled a recent tender for exploration and exploitation in seven fields in the Panonian Basin.

Energy stability is a prerequisite for economic growth which is contingent on a synergy of own production, development of supply routes and good infrastructure, he underscored.

Ćorić recalled that currently Croatia imports 80% of oil and 60% of gas and that it needs to reduce the dependence on imports.

He announced that in that regard a call would soon be published for exploration and exploitation in the Dinaric Alps, adding that he believes that it will attract a lot of interest. He added that Croatia should consider whether it wanted to pursue exploration and exploitation of the Adriatic and that this required a consensus.

Asked by reporters whether the government will co-finance an LNG terminal on Krk island if there isn't sufficient interest for the terminal's capacity lease, Ćorić said that he personally believes that the LNG terminal is an exceptional strategic interest and that if necessary the state should consider co-financing it.

State Assets Minister Goran Marić underscored that the state is the largest shareholder in the Jadranski Naftovod (JANAF), crude oil transportation company, and that it supports the company's business growth, adding that its priority remains to be the reliable and supply security for Croatia and to meet all contractual obligations toward its partners.

The conference was also told about the significance of infrastructure in the oil transport system and of Janaf's role in supplying southeast Europe.

Sergey Kazanstev from the Russian state-owned Transneft oil pipeline company said that Janaf and Croatia are an important partner to Transneft and Russia.

"Janaf supplies almost all of southeast Europe, and whether refineries will operate or not depends on Janaf. I believe that we are utilising our strategic geographic position in the best possible way," Janaf's president of the management board, Dragan Kovačević said.

He underscored that Janaf had moved from oil transportation to oil storage and that it intends to transform Omišalj on the island of Krk into a hub in the Adriatic and to become the main oil trader in the Mediterranean.

The conference in Zagreb attracted about 40 oil companies from around the world as well as experts in oil and energy to discuss challenges on the energy and oil markets, a low-carbon development strategy, the EU's energy security strategy, safe transport issues, the increasing complexity of the oil business, growing competition, price volatility and maintaining profitability.

For more on oil exploration in Croatia, click here.

ZAGREB, October 10, 2018 - An oil spill was spotted on the River Sava downstream of the oil refinery at Bosanski Brod, a town in the Bosnian Serb entity of Republika Srpska on the border with Croatia, where an explosion and a fire occurred on Tuesday night, and the relevant Croatian services were notified, the Croatian Rescue and Protection Directorate (DUZS) said on Wednesday.

ZAGREB, October 10, 2018 - Eight workers were injured and one person has died in a fire that broke out after an explosion in the oil refinery in Bosanski Brod, a town on the River Sava in the Bosnian Serb entity of Republika Srpska, around 9.30 pm on Tuesday, and they were all hospitalised, local media reported.

ZAGREB, September 7, 2018 - A group of workers at the Sisak oil refinery said on Friday they had documents showing that the management of the INA oil company were preparing two versions of a plan to terminate production at the plant, with January 1 or May 1, 2019 as the dates for the closure of the refinery.

Due to the damage, other tankers cannot deliver oil and derivates.

ZAGREB, July 17, 2018 - The INA oil company on Tuesday reported that it had received a ruling by the High Administrative Court quashing an earlier decision by the Administrative Court and a decision by the Economy Ministry to revoke an exploration licence for the Sava exploration site, and returned the case to be reconsidered.

ZAGREB, June 26, 2018 - Assistant Minister of the Sea, Transport and Infrastructure Siniša Orlić visited on Tuesday the site of a fuel spill in Raška Bay in the northern Adriatic and commended the Istria County Operational Centre, Civil Protection units and all those included in removing the damage caused by the spill.

ZAGREB, February 26, 2018 - The oil pipeline operator JANAF’s net profit in 2017 amounted to 290.7 million kuna, the same as the year before and 41.7% more than planned, the company said in a press release on Monday.