During 9M 2023, INA recorded a revenue decrease of 20% YoY, an EBITDA decrease of 44.7%, and a net income of EUR 158m, a decline of 57.7% YoY.
Starting off with the revenue, in 9M 2023, it amounted to EUR 2.89bn, representing a decrease of 20% YoY. On a Q3 basis, it amounted to EUR 1.2bn, a decrease of 21.4% YoY. Ina noted that macroeconomic stabilization of hydrocarbon prices, despite some volatility, continued throughout 2023. This led to 33% lower realized prices as compared to 9M 2022, especially in terms of gas prices.
Breaking the revenue down by segment, in the “Refining and Marketing, including Consumer Services and Retail”, which is also the largest segment, the revenue amounted to EUR 2.84bn, decreasing by 20% YoY during 9M, while in Q3, it amounted to EUR 1.2bn, a 21.7% decrease YoY. In terms of the total refining throughput, it amounted to 1,661 kilo tonnes (kt), a reduction of 16% YoY, with a decrease that was recorded across both domestic and imported crude oil, as well as other feedstock. Looking at the refining product sales, in total they amounted to 2,977 kt, an increase of 6% YoY. Breaking this down by countries, Croatia (the largest single individual country) recorded refining product sales of 1,894 kt, a 10% increase YoY. Sales in B&H decreased by 7% to 427 kt, in Slovenia by 46% to 22 kt, in Italy by 9% to 13 kt. On the other hand, in Other markets it grew by 11% YoY to 622 kt. In terms of the total natural gas sales, they amounted to 431 million m3, representing a decrease of 26% YoY. Ina also noted that Rijeka Refinery successfully started at the end of April, which had a significant contribution to results.
Next up, in the “Exploration and Production” segment, during 9M 2023, revenue decreased by 40% YoY to EUR 432m, while in Q3, the decrease is even more significant, at 58.6% to EUR 134m. This came as a result of both lower hydrocarbon production, which amounted to 11,744 barrels of oil per day (boe/d), a 4% decrease YoY, as well as an average hydrocarbon price decrease of 33% YoY, to app. USD 74/boe.
In 9M 2023, OPEX amounted to EUR 2.7bn, a 14% decrease YoY. The most significant decrease was recorded in the costs of raw materials and consumables, which declined by 37% YoY, to EUR 930m. This is in line with the reduced hydrocarbon prices. Staff costs also recorded a 12% increase YoY, to EUR 187m, under the influence of elevated inflation rates. In terms of the EBITDA, it amounted to EUR 341m, representing a decrease of 45% YoY. In Q3, the decline is somewhat less substantial at 37%, with an EBITDA of EUR 157m. As such, during 9M and Q3 2023, the EBITDA margins amounted to 11.8% and 12.9%, respectively, a decrease of 5.25 p.p. and 3.24 p.p. YoY, respectively.
The net financial result amounted to EUR -20.4m, recording a decline of 89% YoY, mainly as a result of lower financial income (EUR 10.7m, -72% YoY), but also slightly offset by lower financial costs (EUR 31m, -37% YoY). Taken together, this led to a net income to majority of EUR 157.8m, a 58% reduction YoY in 9M, whilst in Q3 2023, it amounted to EUR 84.7m, a decrease of 48% YoY.
INA key financials (9M 2023 vs. 9M 2022, EURm)
Source: INA, InterCapital Research
INA key financials (Q3 2023 vs. Q3 2022, EURm)
Source: INA, InterCapital Research
In terms of CAPEX, it amounted to EUR 197.3m in 9M 2023, a 22% reduction YoY, and EUR 65.3m in Q3, a 13.6% reduction YoY. The 9M CAPEX decline is in line with different project dynamics and tendering. Ina also noted that the Rijeka Refinery Upgrade Project reached 81% total completion, while Upstream investment increased by 11% due to higher Croatia Onshore exploration activities.
