mol janaf ina naftovod.jpg
Photograph: HINA/ MOL/ ds

In the first six months of 2016, the Croatian oil company INA generated a net sales revenue of HRK 6.29 billion, down 32% on the year, while net profit was down more than 90%, which is the result of the oil and gas price decline, according to the company's report issued on Thursday.

According to the report, the company's net profit, excluding special items, amounted to HRK 23 in H1 2016, down 93% on the years. Earnings per stock were down to HRK 2.3 while a year ago it amounted to HRK 32.8.

INA results in Q2 2016 improved compared to Q1 2016. However, the overall results in the first half of 2016 are still affected by the challenging external environment, read the report.

INA Group’s EBITDA in H1 2016, excl. special items, reached HRK 723 million, while the CCS EBITDA, excl. special items, amounted to HRK 755 million.

INA’s Exploration
and Production segment was burdened by a 31% lower Brent price compared to H1 2015 and
the decrease in Brent also impacted the gas price.

Nevertheless, continuous efforts for maximising production on existing Upstream assets resulted in a 12% increase in oil production, with domestic production increasing by 16%.

Commenting on the company's results, INA Management Board President Zoltsn Aldott said that the first half of 2016 was marked by the low Brent environment of around USD 40 per barrel,
significantly lower gas prices, as well as deteriorated refinery margins.

"Consequently, CSS EBITDA exl. special items for H1 reached HRK 723 mn, a lower result compared to the same period last year. Despite that, in the first half of 2016 INA continued its strong investment performance with CAPEX realisation of HRK 717 mn, which is almost on level of EBITDA exl. special items," Aldott said.

"2016 is and will be marked by an adverse external environment, not only for INA but for oil and gas companies in general. To tackle that challenge, the Company is re-evaluating all projects and processes to  enable a stable current position and future growth.” he added.

(EUR 1 = HRK 7.47)

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