OREANDA-NEWS. August 3, 2012. INA - Industrija nafte, d.d. has published financial results of INA Group for the first half of 2012. INA has delivered positive results in the first half of 2012 with EBITDA of HRK 2,450 million excluding special items. Operating profit excluding special items amounted to HRK 1,177 million and net profit excluding special items amounted to HRK 663 million.

These results were achieved despite the changes in the external macro environment, the depressed market demand, regulatory and political changes, and a prolonged economic slowdown in core markets markedly which significantly affected company operations in the first half of 2012. While Croatian operations are influenced with regulatory constraints in the respect of the capped natural gas prices for households and small industrial companies, a prolonged economic slowdown had a significant effect on the further depressed marked demand for crude oil products, meanwhile in the international portfolio INA suffered from not receiving revenues Syrian operations. Besides the operational developments, INA’s results were negatively influenced by the depreciation of the HRK against USD, resulting in HRK 251 mn financial losses for the first half of 2012 compared to HRK 310 mn gains in the same period last year.

Exploration and Production’s operating profit, excluding special items amounted to HRK 2,089 million, which is lower compared to the same period last year, due to 28% decreased hydrocarbon production mainly resulting from lack of Syrian production volumes and significant losses in the gas trading business coming from increased natural gas purchase prices as a result of increasing international gas prices and the capped sales prices for certain customers in Croatia (as a result of which Prirodni plin delivered an EBIT loss of HRK 630 million in H1 2012).

Refining and Marketing segment generated a loss of HRK 610 million in the first half of 2012, part of which is attributable to revaluation of our inventory. Retail segment generated operating loss (excluding special items) in the amount of HRK 19 million in the same period.

Commenting on the financial results, INA MB President Zoltan Aldott said „ INA has delivered positive results in the first half of 2012, despite no revenues received from Syria, significant losses generated in the gas trading business due to regulatory constraints, and a decreased regional demand negatively affecting the refining and marketing business, which could not have been achieved without recent year’s efforts to improve business processes and operational efficiency.

Besides recently announced significant discovery on Hrastilnica field, our plans in continental Croatia include drilling of further 2-3 exploratory wells this year. To improve our performance INA will invest further to optimize the refineries operations, which will contribute not only to the company results but to the benefit of the local communities. Meanwhile INA is committed to its intensive modernization program that will strengthen INA’s leading position in Croatia.

The General Assembly’s decision to retain the company’s profit from 2011 is a major prerequisite for carrying out this year’s investment program and in initiating a strong investment cycle for the upcoming period, that will help INA remain one of the most significant economic entities in the region.”