In Q1 2024, INA recorded revenue growth of 5% YoY, an EBITDA increase of 62%, and a net income of EUR 11.9m (Q1 2023: EUR -14.2m).
Starting off with the revenue, INA recorded an increase of 5% YoY, amounting to EUR 801.8m during Q1. The Company commented on how after a turbulent 2022 and 2023, the beginning of 2024 showed a more stable external environment on the oil & gas market. The Q1 2024 result was stronger primarily due to better wholesale margins that, combined with higher Retail sales, allowed for stronger overall result.
Breaking the revenue down by segments, in the Exploration and Production segment, revenue amounted to EUR 122.8m, decreasing by 20% YoY, due to lower prices, primarily of gas. This was also influenced by the increased water cut and natural decline on main gas and oil fields, which was partially offset by better well performance after successfully performing well workovers on field Žutica and production optimization on several onshore fields.
In terms of hydrocarbon production, crude oil production amounted to 10.9k barrels of oil equivalent per day (boe/d), while natural gas production amounted to 11.8k boe/d, a 6% decrease, while condensate production amounted to 734 boe/d, a 20% decrease YoY. In total, this would mean that the total production amounted to 23.5k boe/d, decreasing by 8% YoY. Furthermore, the total average realized hydrocarbon price amounted to 65 USD/boe, a 14% decline YoY.
Moving on to the Refining and Marketing, including the Consumer Services and Retail segment, revenue amounted to EUR 778.4m, growing by 4% YoY. On the one hand, Refining processing and Refining production amounted to 26 kt, decreasing by 15% YoY. On the other, total refined product sales increased by 9% YoY, amounting to 778 kt.
Moving on to EBITDA, it amounted to EUR 60m, growing by 62% YoY, and also implying an EBITDA margin of 7.5%, representing an increase of 2.6 p.p. YoY. In terms of operating expenses, they remained roughly the same YoY, growing by 1% to EUR 788m, with negligible changes across most categories. Finally, the net income amounted to EUR 11.9m (Q1 2023: EUR -14.2m), implying a net income margin of 1.5%.
INA key financials (Q1 2024 vs. Q1 2023, EURm)
Source: INA, InterCapital Research
In terms of CAPEX, it amounted to EUR 101m in Q1, increasing by 97% YoY, with the majority of investments being domestic (EUR 107.3m, +102% YoY), with a slight increase in international investments (EUR 2.9m, +7% YoY). Breaking this down by segments, CAPEX in Exploration and Production amounted to EUR 18.2m, increasing by 48% YoY. The majority of CAPEX however, went to the Refining and Marketing, including Consumer Services and Retail segment, with EUR 83.9m in investments, an increase of 117% YoY. The main projects here include the Rijeka Refinery Upgrade Project, which has achieved 87% of completion overall, the CDU energy efficiency upgrade project, the replacement of the condensing turbines with electric drives, and the revitalization of LPG spherical tank 336-SE-023.
