OREANDA-NEWS. November 01, 2012. INA - Industrija nafte, d.d. has published financial results of INA Group for the first nine months of 2012. Group delivered EBITDA of HRK 1.5 billion in Q3 2012, a significant improvement over Q2 2012, bringing the total EBITDA excl. special items for the first nine months of 2012 to almost HRK 4.0 billion despite the lack of Syrian revenues.

 The Company also recorded positive results in both operating profit and net profit excluding special items for the nine month period, which amounted to HRK 2.3 billion and HRK 1.5 billion, respectively. On 30 September 2012 total liabilities decreased by 8% to the amount of HRK 15,225 million mostly as an effect of lower indebtedness compared to the 31 December 2011 level.

 INA Group net indebtedness decreased by 30% and amounted to HRK 6,351 million. Gearing ratio decreased from 38.8% as at 31 December 2011, to 29.4% as at 30 September 2012.

 INA’s operations are still markedly affected by the changes in the external environment; depressed market demand, prolonged economic slowdown in core markets and political and regulatory constraints on one side and the improving crack spread environment with relatively stable crude prices compared to 2011 on the other side. The capped natural gas prices for households and small industrial companies resulted in HRK 710 million losses in the gas trading business for the first nine months of 2012, meanwhile retail operations are markedly affected by the fact that the Croatian economy continues to suffer from negative growth and contracting market demand. Internationally, INA’s results were negatively affected by the lack of revenues from its Syrian operations. In addition to operational developments, the depreciation of the HRK against USD, which resulted in financial losses of HRK 217 million for the first nine months of 2012 also impacted the Company’s performance during this period.

 Commenting on the financial results, INA MB President Zoltan Aldott pointed out that INA has initiated a new investment cycle, mostly in Croatia, with more than 90% of capital expenditures made in the nine months to September 2012 strengthening INA’s domestic activities. „An intensified drilling campaign is being carried out in our onshore fields with strong focus on the ongoing Ivanich and Zhutica EOR projects, on the preparation of the Medimurje EOR project and accelerated exploration activities resulting in several major discoveries recently demonstrating our commitment to further develop our Croatian E&P activities and to strengthen energy security supply of Croatia. Further development of our offshore fields in Croatia was constrained by the lack of drilling equipment in the past period.

 Efforts by management to improve efficiency and the completed investments in the Refining segment have led to significant improvements in the segment’s results, resulted in improved product yield and reduced own consumption; though this still remains high. The utilization of new plants, together with better feedstock selection, have led to a greater share of marketable motor fuels, securing a basis for future production optimization. We are awaiting the necessary permits and licenses from the relevant authorities to execute new plans for the development of our refining system.

As a result of an intensified modernization in the retail business, that led to 63% higher investments compared to the same period last year, INA will have the largest number of modern filling station network in Croatia among all operators by the end of 2012.” – concluded Mr. Aldott.