In Q1 2019, the company recorded an increase in sales of 14.7%, an increase in EBITDA of 12.1% and a net income of HRK 57m (higher by HRK 51m YoY).

In Q1 2019, INA observed an increase in sales of 14.7% YoY, amounting to HRK 4.25bn. Meanwhile, operating revenues amounted to HRK 4.43bn, which represents an increase of 15%. Such an increase could be attributed to the continuation of favorable hydrocarbon prices and increased sales. It is also worth mentioning that lower Brent price by 6% had a negative effect of HRK 52m on crude oil and condensate sales revenues.

When looking at sales by segment, one can notice an 8% sales increase in Croatia and 23% in Bosnia & Hercegovina. Retail operations also recorded growth of 7%, partly due to the expansion of Montenegro network.

Operating Revenue (Q1 2019 vs Q1 2018) (HRK m)

The company notes that the Upstream benefited from the stable hydrocarbon prices and production levels. Maturity of INA fields and the natural decline in gas production was offset by the continuous efforts in oil production increase. This was followed by the increase in investments, the majority as before focused in Croatia, but also with a visible increase of spending in Egypt.

Refining operations are marked with a major turnaround in Rijeka refinery. This, together with the other investments projects, brought the CAPEX to HRK 618m, which represents an increase of 215% and is the biggest level in Q1 since 2010.

Going further down the P&L, the company observed an increase in EBITDA by HRK 58m (+12.1%), amounting to HRK 539m.

Net result from financial activities is negative in Q1 2019 (HRK -36m) compared to positive Q1 2018 (HRK +7m).

In Q1 2019, INA recorded a net income of HRK 57m, which is an increase by HRK 51m YoY. Such a high increase in net income could be attributed to lower tax paid in  Q1 2019 of HRK 14m, compared to HRK 66m in Q1 2018.

Net Income & EBITDA (Q1 2019 vs Q1 2018) (HRK m)