ZAGREB, May 1, 2020 – The three biggest trade unions in the INA oil group have asked Prime Minister Andrej Plenković to get INA owners – the government and the Hungarian oil company MOL – to give up the payment of the dividend for 2019.
The also urged the government to consider the possibility of including INA and its companies in a set of measures aimed at preserving jobs.
“The financial reports clearly show the gravity of the consequences of the economic crisis and its effects on the INA Group, jeopardising more than 9,000 jobs,” one of the unions said in a press release.
Another union said that the proposal to cover INA with the government measures that already benefited 84,000 employers was reasonable.
The unions demand the preservation of jobs, investments and economic activity.
The INA Group generated HRK 3.95 billion from sales in the first quarter of 2020, which was down by 7% in comparison to the corresponding period of 2019, this leading oil and gas company stated on Thursday.
Furthermore, the company’s financial statement shows that INA had a net loss of HRK 798 million in Q1 2020 as against a profit in the same period in 2019.
“Operations of INA, d.d. in Q1 2020 have witnessed unprecedented market dynamics, particularly at the end of the quarter. The outbreak of the COVID-19 pandemic coupled with the disagreement within OPEC+ have led to a parallel supply and demand shock on global oil markets leading to a massive drop in oil & gas prices,” reads a press release on INA’s web site.
Additionally, INA experienced a cyber-attack which created operational challenges but core operations and market supply were not interrupted and the business continuity was ensured, said INA.
INA, d.d. revenues recorded a 6% decrease in line with the mentioned market conditions while the reported result turned negative and amounted HRK 531 million, primarily due to inventory revaluation driven by external environment.
“Exploration and Production EBITDA excluding special items decreased by 22% to HRK 419 million mainly caused by 11% lower realized hydrocarbon price and the natural decline in hydrocarbon production, primarily Croatian natural gas volumes.”
Refining and Marketing including Consumer Services and Retail EBITDA excluding special items, hit by external drivers, was negative in the amount of HRK (978) million. Consumer Services sale quantities were only down by 4% in Q1, as the biggest drop in demand occurred at the end of the reporting period.
CAPEX was significantly lower in Q1 2020 compared to Q1 2019 due to the high base effect, as a major turnaround in the Rijeka refinery in 2019 boosted investments last year, INA said in the statement.
More news about INA can be found in the Business section.
