In 2018 INA observed an increase in sales revenue of 20%, increase in EBITDA of 3% and a decrease in net income of 4%.
In 2018, INA recorded a 22% increase YoY in operating income amounting to HRK 23.2bn. Of that, sales revenue amounted to HRK 22.3bn, which represents an increase of 20%. Such an increase could be attributed to higher crude oil and product prices and increased total sales volume on domestic and B&H market.
Note that Upstream, as the main cash generator of the company, benefited from the increased Brent price as well as growth projects.
INA Operating Revenue (2015 – 2018) (HRK m)
When observing operating expenses, they also increased by 22%, amounting to HRK 21.6bn. Of that, costs of raw materials and consumables accounted for 55.6%, amounting to HRK 12bn (+33%). The increase could be explained with higher processing and higher crude prices.
Furthermore, cost of goods sold increased by 23%, amounting to HRK 3.6bn, resulting from different sales structure.
In 2018, INA’s EBITDA (as reported by the company) amounted to HRK 3.5bn, which is an increase of 3%. In 2018, INA’s financial income decreased by HRK 398m (-88%) and amounted to HRK 53m. Consequently, their net financial result went from HRK 146m in 2017 to HRK -167m. To be specific, net foreign exchange loss reached HRK 38m in 2018, while in 2017 net foreign exchange gain reached HRK 223m. Further, interest payable amounted to HRK 68m and interest received to HRK 3m in 2018, while in 2017 they amounted to HRK 57m and HRK 4m, respectively.
As a result, INA’s their EBT decreased by 3% (even though the company recorded an increase in EBITDA).
In 2018, INA reported a net income of HRK 1.2bn, which represents a 4% decrease.
INA EBITDA & Net Income (2015 – 2018) (HRK m)
*EBITDA as reported by the company
INA’s CAPEX spending increased by 30%, majority of which in Refining, mostly focused on Propane-Propylene Splitter project in Rijeka as well as other refining development projects. In 2019, the management expects further company investments alongside with the comprehensive INA Downstream 2023 New Course program implementation.