During Q1 2025, INA recorded sales revenue growth of 14% YoY, an EBITDA increase of 40%, and a net income to majority of EUR 35.4m, an increase of 197% YoY.
Starting off at the top of the P&L, INA recorded a revenue of EUR 916.3m in Q1 2025, an increase of 14% YoY. In terms of revenue growth drivers, the most significant contributor was the increase in natural gas prices, which grew by 72% YoY, adding app. EUR 23.1m in additional revenue in the Exploration and Production segment, despite lower production volumes.
In fact, the overall hydrocarbon production decreased by 9% YoY, despite the average realized hydrocarbon price increase of 14%. As a result, revenue in the Exploration & Production segment grew by 16% YoY. Next up, in the Refining and Marketing, including Consumer Services and Retail segment, consumer services and retail volumes grew by 2%, particularly in the Croatian market, supported by positive demand trends, improved services quality, and INA’s loyalty program. Furthermore, the non-fuel margin grew by 18%, supported by the expanded Fresh Corner concept and retail modernization efforts.
Refined product sales volumes also grew by 27%, to 991 kt in Q1 2025. Especially large increases occurred in gasoline, at +92% YoY, fuel oil (at +669% YoY), and LPG (at +84% YoY). Lastly, a recovery in refining throughput and production was also recorded, from 26 kt in Q1 2024 to 903 kt in Q1 2025, due to a turnaround of shutdowns at Rijeka.
Moving on, OPEX amounted to EUR 886.9m, growing by 15% YoY, due to higher activity levels but also higher cost pressures in several areas. Raw materials and consumables costs grew the most, at over 1270% YoY to EUR 494m, but this is more due to normalization of refinery operations, as the Rijeka refinery was not operational in Q1 2024. Staff costs grew by 16% YoY to EUR 77.9m, due to an increase in wages. Depreciation & amortisation grew by 12% YoY to EUR 44.4m, due to higher asset base and project commissioning, while service costs grew by 16% to EUR 19.6m, due to higher operational activity. On the other hand, costs of other goods sold declined by 65% YoY to EUR 190m, as Q1 2024 included elevated product costs. Other material costs also declined by 15% YoY to EUR 61m, also partially offsetting the rise in raw material costs.
Next up, EBITDA amounted to EUR 84m, up 40% YoY, and implying an EBITDA margin of 9.2%, an increase of 1.68 p.p. YoY. By segment, EBITDA in the Exploration and Production segment amounted to EUR 86.5m, up 16% YoY, due to an increase in the natural gas prices, offsetting a decline in hydrocarbon production, as well as a higher contribution from oilfield services (+EUR 5.6m YoY) due to expanded third-party activity. Refining & Marketing, incl. Consumer Services and Retail EBITDA declined by 25% YoY to EUR 9.3m, due to weaker refining and commercial margins as a result of external market conditions. A 2% increase in retail volumes and a non-fuel margins increase of 18% partially offset this decline. In the Corporate and Other segment, EBITDA decreased from EUR 3m to EUR 6.1m, mainly as a result of administrative and centralized overheads. Due to all of this, the intersegment EBITDA effect was EUR -5.7m in Q1 2025 vs. EUR -23.8m in Q1 2024, due to lower unrealized margins on internal transfers.
Moving on to net income to majority, it amounted to EUR 35.4m, an increase of 197% YoY, implying a net income margin of 3.9%, an increase of 2.38 p.p. YoY. Net income growth was supported by good operating profit results, a net financial result of EUR 1.8m (Q1 2024: EUR -7m), mainly due to a EUR 9.2m FX gain, as well as interest income and costs remaining relatively stable.
INA key financials (Q1 2025 vs. Q1 2024, EURm)
Source: INA, InterCapital Research
In terms of CAPEX, it amounted to EUR 33m in Q1 2025, a decrease of 67% YoY, with domestic CAPEX decreasing by 69% YoY to EUR 31.1m, while international CAPEX declined by 29% YoY to EUR 2.9m. CAPEX decrease was recorded in both Exploration & Production, as well as Refining and Marketing, incl. Consumer Services and Retail segments. In the former, a 19% decrease YoY to EUR 16m was recorded, with focus areas in Croatia, which included submission for commercial discovery for Obradovci-5 in Drava-03, commencement of drilling at Leščan geothermal well, as well as continued production optimization and infrastructure upgrades.
In this segment, investments were made in Egypt, including active drilling at North Bahariya, as well as the evaluation of investment strategy in West Abu Gharadig and East Damanhur. However, the largest decrease came in the latter segment, i.e., Refining and Marketing, incl. Consumer Services and Retail. An 80% drop was recorded here to EUR 17m, with key projects including Rijeka Refinery upgrade, which is 94% complete, and targeting mechanical completion by the end of the year. Major activities also continued across all process units. INA also noted that it signed a back-pressure turbine installation contract, an electrolyzer project for hydrogen production was contracted, while the biomethane project design was finalized. Lastly, INA invested EUR 1.7m in retail upgrades and the expansion of Fresh Corner.
