INA Group posts HRK 66 mn in loss

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.

Last update: Fri, 29/04/2016 - 19:54
Author: 

More from Business

Management buyout of Djuro Djakovic Montaza from Bilfinger under way

The management of "Bilfinger Djuro Djakovic Montaza" company specialised in steel construction including the...

German energy firms entitled to damages for nuclear shutdown policy

German energy companies are entitled to "appropriate" compensation for the government's 2011 decision to rush ahead...

Amazon tests checkout-free food store

Online retail giant Amazon is testing a new type of physical store in the US that promises no lines or checkouts,...

BMW to repay record 72 million dollars to Australian car buyers

BMW will have to pay back 72 million Australian dollars (53.8 million US dollars) to car buyers in Australia who...

Eurogroup finance ministers agree to debt relief for Greece

Finance ministers from the countries that use the euro agreed Monday in Brussels to a series of relief measures for...