OREANDA-NEWS.  INA Group’s EBITDA  for Q1 2014 amounted to HRK 831 million. At the same time net profit amounted to HRK 241 million. Operating cash flow remains strong, at HRK 452 million in Q1 2014 while the Group’s financial position improved further as gearing  level decreased to 26.2% in this quarter from 30.6% a year ago. Net debt amounted to HRK 4,687 million, 31% lower compared to the end of Q1 2013.

Capital expenditures in Q1 2014 increased significantly by 72% compared to Q1 2013, amounting to HRK 280 million. The predominant part, HRK 203 million, was invested in the Upstream segment in Croatia.
In Upstream, INA managed for the first time in the last ten years to increase crude oil production from existing fields in Croatia compared to the same quarter in the previous year by 3%. This is the result of an intensive well workover program launched late last year. This way the natural production decline trend of these fields, which INA has successfully mitigated already in the past 3-4 years, is temporarily reversed. Our similar efforts were also visible in onshore gas production, limiting the natural decline to a very low 1% against Q1 2013, while offshore gas production seems to be stabilizing.

Refinery operations are still burdened by the unfavourable external environment, with 27% and 32% lower average crack spread quarter on quarter and year on year, respectively. Despite that, sales structure improved with higher diesel share. INA maintained its strong retail and wholesale position in Croatia and continued to increase in Bosnia and Herzegovina.

The decrease of sales revenues by 22% compared to Q1 2013 is largely due to accommodating our natural gas sales to close to the level of our domestic production, with decreased import. Also, refinery utilization and refined product sales were adapted to market circumstances (i.e. less available profitable export sales opportunities).