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)

Latest news

Syrian opposition rules out future role for President al-Assad

The Syrian opposition said Friday it would not accept any role for President Bashar al-Assad in the future of the war-torn country, reacting to a recent US shift saying that removing al-Assad is no longer a priority for Washington.

Russian Army integrates breakaway forces of Georgian province

Parts of the small fighting forces of the Georgian breakaway province of South Ossetia have been placed under Russian military control, Russian Defence Minister Sergei Shoigu said on Friday.

Czech Republic's Pilsner Urquell beer is now Japanese

Japanese brewing company Asahi completed its takeover of the Czech brewery Pilsner Urquell on Friday, Asahi said in a statement.

Judge approves 25-million-dollar settlement of Trump University case

A US district judge on Friday approved a 25-million-dollar settlement of lawsuits and state fraud allegations against Trump University, the US president's now-defunct business venture.

Former Thai premier Thaksin to junta on reconciliation: 'Cut me out'

Former Thai prime minister Thaksin Shinawatra on Friday announced that he is not interested in the junta-led reconciliation process, three days after the junta handed him a half-a-billion-dollar tax bill for his past business deal.

Dalic: We welcome possible deal between Agrokor and banks

The government welcomes the possibility of an agreement being concluded between the Agrokor food company and creditor banks, and the bill on vitally important companies is not a fallback plan but the result of the government's care for the overall economic and financial stability of Croatia, Deputy Prime Minister and Minister of Economy Martina Dalic told a press conference in Zagreb on Friday.

Croatia, China sign action plan for cooperation in agriculture

The Croatian and Chinese ministries of agriculture on Friday signed an action plan for cooperation in the field of agriculture for the period 2017-2018, the Croatian ministry said in a statement.

ZSE indices up, Agrokor shares in focus of investor interest

The Zagreb Stock Exchange (ZSE) indices on Friday rose by more than 1.8%, with stocks of the Agrokor food and retail concern being in the focus of investor interest again.

Berlin police defend handling of Berlin market attacker

Berlin police defended themselves on Friday against accusations that they stopped surveillance on Berlin Christmas market attacker despite knowing in June 2016 he was dangerous.

Croatia, creditors tailor emergency measures to save tottering giant

Croatia's tottering retail and food giant Agrokor reached an agreement with its creditors, putting its debts standby and allowing it to continue working during emergency restructuring, the Croatian branch of Austria's Erste Bank said Friday.

Agrokor's creditors say standstill agreement to go into force today

A standstill agreement regarding the Agrokor concern's existing financial obligations to banks will take effect on Friday, additional capital will be injected into the concern in the coming days and the concern will be actively restructured, which includes a change of its management, it was said on Friday after a meeting between Agrokor's suppliers and creditor banks.

Palestinians, UN slam Israel's new settlement plan

Palestinians, Israeli activists and the UN lambasted the government of Israeli Prime Minister Benjamin Netanyahu on Friday, a day after it gave the go-ahead for the first new West Bank settlement in a quarter of a century.

South Sudan rebels release three abducted foreign oil workers

South Sudanese rebels have released three foreign engineers they abducted in early March in the oil-rich Upper Nile region, Foreign Affairs Ministry official Mawein Makol Arik said on Friday.

Turkish opposition: Imprisoned party chief has gone on hunger strike

The head of Turkey's pro-Kurdish opposition party has launched a hunger strike from prison.

European leagues threaten Champions League schedule clashes

The European Professional Football Leagues (EPFL) on Friday threatened schedule clashes on Champions League matchdays in an ongoing dispute with the governing body UEFA.

Danish court revokes citizenship of IS volunteer

A Danish appellate court on Friday stripped a man of his Danish citizenship for volunteering to fight for the extremist Islamic State in Syria.

Banks and Agrokor agree on key elements of standstill agreement

Member banks of the coordinating committee of financial creditors and representatives of the Agrokor food company have in principle agreed on key elements of a standstill agreement, which is expected to be signed later today, announcing changes in the company's management team, Erste Bank said in a statement on Friday afternoon.

Syrian man on trial in Sweden; mosque attack labelled terrorism

A Syrian man went on trial Friday in the southern Swedish city of Malmo, charged with terrorism and arson after an attack last year on a building used as an assembly hall by Shiite Muslims.