In 2020, the company recorded a decrease in operating income of 35%, decrease in CCS EBITDA excluding special items of 38% and a net loss of HRK 1.14bn.

2020 was definitely a very challenging year for INA, as the company reported a net loss for the first time since 2015.

The product demand in certain periods of 2020 dropped by 30-50%  YoY, heavily impacting performance on captive market. Regardless of the partial oil market recovery in the second half of 2020, oil and gas prices were more than 30%  YoY lower on average in 2020. This had significant impact on the Upstream result, but the severe mobility restrictions and significant decline in economic activity, caused by the COVID-19 restrictions, also impacted the Refining and Retail operations.

As a result, the company reported an operating income of HRK 15.26bn, representing a decrease of 35%. Retail sales volumes deteriorated due to the weaker tourist season and mobility restrictions, with volumes decreased by 16% YoY. Besides that,  lower prices impacted sales revenues negatively by HRK 1.04bn. To be specific, 34% lower realised Brent price resulted in HRK 611m lower crude oil and condensate sales revenues, while lower gas prices resulted in additional HRK 396m decrease.

Operational result moved in line with the deteriorated environment and CCS EBITDA excl. special items of INA Group dropped significantly to HRK 1.783bn, a 38% YoY decline.

Operation of Exploration and Production, traditionally the main driver of result, was marked by a combination of the mentioned drop in realized prices and continued trend of lower production. This drove the segment’s EBITDA to HRK 1.013bn, a drop of 57% YoY. CCS EBITDA excluding special items of Refining and Marketing including Consumer Services and Retail stayed strong at HRK 639m in 2020 mainly due to Retail contribution and cost saving measures.

In 2020, Ina recorded a net loss of HRK -1.14bn (compared to a profit of HRK 489m in 2019), as it was also significantly impacted by one-off non-cash items, such as impairment charges related to refinery assets in Sisak and Crosco Group assets, related to drop in engagement. On the positive side, the company managed to remain cash flow positive, with a NCFO amounting to HRK 2.2bn.