The INA oil and gas group made positive results in 2016, with profit from operations reaching HRK 607 million, compared to a HRK 1.34 billion loss for 2015, the Zagreb-headquartered group stated in a consolidated financial report issued on Monday.
Net sales revenue in 2016 reached HRK 15.6 billion, down by 17% on the year. The decrease was ascribed to lower Brent and natural gas prices as well as to lower production in the Exploration and Production segment.
In 2016, net profit attributable to equity holder reached 101 million kuna as against loss of 1.4 billion kuna in 2015.
"Despite the challenging environment in the form of Brent and crack spreads decrease, affecting both the Exploration and production as well as Refining segment, Company achieved the positive development in results. This was achieved primarily with the ongoing program of operational adjustment to lower commodity prices. Exploration and production remained the main cash generator during 2016. Despite a 32% decrease in EBITDA, operating profit of the segment remained relatively strong, reaching HRK 1,172 million for the period," reads the financial report released.
The management board chairman Zoltan Aldott described 2016 as a successful year for INA.
"After a long period of negative price environment and political turmoil in Syria, in the second half of 2016 the situation relatively stabilised, which was reflected on INA financial results: for the first time after several years no significant impairments were booked," he said.
"The first half of 2016 though was marked with historically low oil and gas prices that pushed us to optimise our spending. This was executed through cost optimisation program which, combined with business expansion, ensured the strongest balance sheet in the last decade, making INA eligible for strategic investments in the future."
"Despite the unfavourable environment and the necessary cost optimisation, almost all business segment indicators were improved," Aldott was quoted as saying.
Last year, INA Group increased its interest in Bosnia and Herzegovina's Energopetrol from 33% to 67%.
The group's capital investments were reduced by 16% from 2015 to HRK 1.39 billion in 2016.
"Gearing ratio decreased significantly from 22.3% as at 31 December 2015, to 19.1% as at 31 December 2016, and the net debt came to HRK 2.5 billion," reads the report.
Domestic crude oil production increased by 12% "on the back of well workovers and optimisations together with production from new wells Selec and Djeletovci Zapad."
(EUR 1 = HRK 7.435)