In Q1 2022, sales revenue increased by 51% YoY, EBITDA increased by 145%, while net profit amounted to HRK 586m, an increase of over 10x YoY.
INA has published its Q1 2022 results. According to the results, INA increased its sales revenue by 51% YoY, amounting to HRK 5.96bn during Q1. The main drivers of this increase were the high hydrocarbon price levels, especially the rise of prices from late February due to the increased geopolitical risk and uncertainty regarding the effects of sanctions on the global energy markets. More specifically, increased gas prices added HRK 270m, while 67% higher Brent price added HRK 247m from crude oil and condensate sales, with other products having a positive impact of HRK 39m on the revenue.
The segment „Refining and Marketing, including Consumer Services and Retail“ grew by 49% from HRK 3.8bn in Q1 2021 to HRK 5.7bn in Q1 2022. An increase in revenue in the „Exploration and Production“ segment was also significant, growing by 97% YoY to HRK 1.35bn. Even so, the Company notes a decline in production, due to production optimization. In Croatia, the decline was due to the natural decline in Onshore oil fields, higher water cut on major gas fields, increased water cut on Offshore gas fields, as well as the natural decline in major gas condensate fields in Deep Podravina. In the international crude oil production, in Egypt, there was a decline due to lower well performance at all concessions, while in Angola, there was higher production due to a change of INA share on Block 3/05.
Even so, such rises in prices had a positive effect on EBITDA, which grew by 145% YoY to over HRK 1.14bn. The Exploration and Production segment was the main contributor to the EBITDA, contributing HRK 0.9bn in Q1 2022, which is roughly double in the current price environment, significantly compensating for the effect of the continued natural decline of production. Refining and Marketing, including Consumer Services and Retail, contributed the remainder of the EBITDA, amounting to HRK 385m in Q1 2022, an increase of 138% YoY. Because of these positive developments, net profit increased significantly, growing by more than 10x to HRK 586m.
Looking over to the investments, the Company increased its CAPEX considerably, growing it by 271% YoY to HRK 846m, out of which the largest increase comes from the domestic market, which grew by 354% YoY to HRK 812m. The majority of these investments were spent on Refining and Marketing. Rijeka Refinery Upgrade Project was the main strategic investment, which continues with construction works and equipment delivery to the site. At the same time, two new wells were finished as part of the Croatian offshore campaign.
Ina Key Financials (Q1 2021 vs. Q1 2022, HRKm)
