In the first quarter of 2016 INA Group incurred a loss in the amount of HRK 66 million, while in the same period of 2015 it operated at a profit of HRK 50 million, shows a financial report the company released on Friday.

Net sales revenues totalled HRK 2.6 billion, 31% down from the same period last year, while EBITDA without one-off items dropped by 66% to HRK 263 million.

The group's net results without one-off items amounted to HRK 66 million.

CCS EBITDA without one-off items totalled HRK 379 million, 62% down from the first quarter of 2015.

However, when one-off items - severance packages in the amount of HRK 168 million - are taken into account, INA Group operated at a loss of HRK 66 million.

INA CEO Zoltan Aldott said Q1 was marked by an extremely low price of Brent oil, of some 34 US dollars per barrel.

He also noted that the accounting result was affected by one-off items that were a consequence of restructuring in the retail segment.

As a response to the changing environment, the company's management has launched a stabilisation programme aimed at cushioning the unfavourable impact of low prices and ensuring sound foundations for future investments, he said, adding that he expected business results to recover and that capital investments had increased for the first time since Q1 2015 to HRK 342 million.

Despite the fact that INA currently has limited exploration licences, it has managed to increase the production of crude oil by 10%, mostly in Croatia as well as in Egypt. This is a good result that testifies to the impact of continued overhauls and a stable level of capital costs, said Aldott.

As for the refineries, Aldott said that refining business and the quantities of refined oil sold were somewhat lower than in Q1 2015, which he said was due to an overhaul of the Rijeka refinery that was completed in Q1, and that an increase in both production and sales was expected by the end of the year.

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