INA Group witnesses declining sales, primarily in fuel segment, with the reduced travel needs of the general public and slowdown in economic activity. This resulted in a recent demand decrease between 30-50%.
INA published an announcement regarding the implications of Covid-19 on the company’s operations. Due to market developments which include drop in oil prices, introduction of measures against Covid 19 and demand drop, INA has switched to the crisis model and has introduced operational and financial measures, keeping the production on-going and the market supply safe.
Exploration and Production segment
Production has been uninterrupted and going as planned, however sharp drop in crude oil prices has significant impact on business profitability and cash flow. Due to the reduced cash flow generation investment projects for the upcoming period, profitability of existing fields and operational costs are reviewed to adjust the operation to the changed external environment.
Refining and Marketing
Lockdown in core markets have resulted in a significant drop in demand for key product groups, which will have a negative impact on cash flow of the segment. This creates operational challenges and continuous optimization across the assets. Safe supply of products in all core markets is ensured and remains INA’s top priority.
Consumer Services and Retail
Following a strong operational and financial performance in Q1, INA Group witnesses declining sales, primarily in fuel segment, with the reduced travel needs of the general public and slowdown in economic activity. This resulted in a recent demand decrease between 30-50%. INA has refocused operations to provide reliable and safe supply across our network and remain cash flow positive in the segment.