Croatia's INA net profit falls 17 percents in 2018

Croatian oil and gas company INA said its consolidated net profit dropped by 17% to 980 million kuna ($149.4 million/131.9 million euro) in 2018 due to higher financial expenses.

Net sales revenues climbed 20% to 22.3 billion kuna last year, driven by growth in all segments, INA said in a statement filed with the Zagreb bourse.

EBITDA from exploration and production activities excluding special items grew by 23% to 3.014 billion kuna.

"Upstream, as the main cash generator of the company, benefited from the increased Brent price as well as growth projects. EBITDA of the segment exceeded 3 billion kuna, 22% up from 2017 result. INA’s purchase of ENI’s share in the Northern Adriatic offshore gas fields was the biggest M&A in recent years, demonstrating focus in investments where return can be achieved," Sandor Fasimon, president of the management board said. "Still, the period of favorable Upstream environment should not be taken for granted and longterm sustainability of all businesses needs to be ensured. Natural decline of the production remains a challenge due to the maturity of INA upstream assets, however multiple projects aimed at addressing this are underway."

Retail operations stay focused on expanding the portfolio of goods and services offered to customers, together with regional expansion, the company said.

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Increase of Montenegro network in 2018 is an evidence of INA’s future focus in regional markets, while constant growth of non-fuel margin demonstrates the viability of non-fuel related investments, it added.

Retail sales volumes improved 2% due to significant contribution of the network in Bosnia and Herzegovina and network expansion in Montenegro from one to five service station, INA explained.

Capital expenditure amounted to 1.82 billion kuna, an increase of 30% on the year.