ZAGREB, February 22, 2019 – The INA oil and gas company generated a net profit of 1.18 billion kuna in 2018, down 3.7% from 2017, its financial statement showed on Thursday.
Total revenue increased by 19.5% to 23.35 billion kuna, while expenditure reached 21.83 billion kuna, up 21.5% on the year.
EBITDA rose by 3.0% to 3.49 billion kuna and net sales revenue increased by 20% to 22.35 billion kuna. Capital expenditure amounted to 1.82 billion kuna, an increase of 30% on the year.
The positive business results were driven by growth in all segments, particularly due to higher hydrocarbon prices and higher sales.
Sandor Fasimon, president of the management board, said that the INA Group had once again achieved a very strong result.
INA utilised the market conditions and increased both its sales and EBITDA, with revenues growing by a further 20% on the strong 2017 result to over 22 billion kuna. Upstream, as the main cash generator of the company, benefited from the increased Brent price, Fasimon said.
He warned that the natural decline of the production remains a challenge due to the maturity of company’s upstream assets, adding, however, that multiple projects aimed at addressing this were underway.
He said that downstream operations remain burdened with the negative cash generation of refining operations, but that the increase in capital expenditure showed INA’s commitment to maintaining a vertically integrated business model. The group’s capital expenditure increased by 30%, mostly in refining.
As for retail operations, Fasimon said that the expansion of the network in Montenegro was evidence of INA’s future focus on regional markets.
More news on INA can be found in the Business section.
