INA's revenue down more than 30 pct, profit down more than 90 pct

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)

Last update: Thu, 28/07/2016 - 10:11

More from Business

Bombardier announces 7,500 job cuts as part of restructuring

Canadian aircraft and train manufacturer Bombardier will cut a further 7,500 jobs as part of its ongoing...

Tobacco giant BAT makes 47-billion-dollar takeover bid for US rival

British American Tobacco Plc said on Friday it has offered some 47 billion dollars to acquire 57.8 per cent of...

ECB to hold rates, decides against extending bond-buying scheme

The European Central Bank left its key interest rates at historic lows on Thursday and left its 80-billion-euro-a-...

Nissan finishes purchase of 34-per-cent stake in Mitsubishi Motors

Nissan Motor has completed its purchase of a 34-per-cent stake in scandal-plagued Mitsubishi Motors for 237 billion...

EU seeks to strengthen trade defence measures as China threat looms

The European Commission proposed a new compromise Wednesday to protect EU industry against unfairly cheap imports,...