In 9M 2022, sales revenue increased by 67.6% YoY, EBITDA increased by 93.5%, while net profit amounted to HRK 2.77bn, an increase of over 2.5x YoY.
INA has published its 9M 2022 results. According to the results, INA increased its sales revenue by 67.6% YoY in 9M 2022, amounting to HRK 27.23bn during the first nine months of the year. The main drivers of these continuous strong results were the high prices of Brent oil, with levels above 100 USD per barrel, and CEGH gas price exceeding even 200 EUR/MWh at some point in Q3 2022 due to an ongoing increased geopolitical risk, turmoil, and uncertainty in the safety of supply.
The “Exploration and Production” revenue grew by 109% from HRK 2.6bn in 9M 2021 to HRK 5.4bn in 9M 2022, making it the biggest contributor to the result. Higher prices impacted sales revenues positively by HRK 2.6bn. Increased gas prices added HRK 1.73bn, while 56% higher Brent price brought an additional HRK 718m crude oil and condensate sales revenues with other products positive impact on revenues in the amount of HRK 1,154m.
Croatian production has decreased because of natural declines of onshore oil fields, higher water cut on major gas fields, and natural declines in major gas condensate fields in Deep Podravina. International production has declined in Egypt as well, however, it has increased in Angola due to an increase of INA share on Block 3/05 by 1.3% due to exit of the partner.
The “Refining and Marketing, including Consumer Services and Retail” revenue grew by 68% from 15.86bn in 9M 2021 to 26.7bn in 9M 2022. Captive market sales have increased despite commercial margins being under pressure due to government price regulations on the domestic market. Refinery operations started at the end of March ensured stable captive market supply in the following months, mitigating the risk of lower product availability driven by the Russia-Ukraine crisis.
The Company’s EBITDA grew strongly by 93.5% YoY, amounting to HRK 4.53bn in 9M 2022. “Exploration and Production” segment’s EBITDA amounted to HRK 3.9bn, up 150% YoY. Because of mentioned growth, INA’s net profit increased strongly by 153.1% from HRK 1.1bn in 9M 2021 to HRK 2.8bn in 9M 2022.
When it comes to investments, CAPEX more than doubled compared to 9M 2021. Investment activities continue to be on high levels on “Refining and Marketing” to mitigate the trend of natural production decline. Rijeka Refinery Upgrade Project continues to be INA’s largest investment in history. “Exploration and Production” also increased CAPEX levels, focusing on development activities both onshore and offshore in Croatia and Egypt.
Due to strong investment activities and unprecedented financing need for the working capital due to the global energy price levels, the Company’s cash flow is lower compared to the same period last year with a net decrease in cash and cash of equivalents in the observed period of HRK 1.48bn.
Outlook for FY 2022 remains positive even with price levels of Brent and CEGH gas prices stabilizing recently, futher amplified by ongoing uncertainty and turmoil with the Russia-Ukraine conflict, under the premise that new regulatory measures don’t additionally impact the market.
INA key financials (9M 2021. vs. 9M 2022, HRKm)
