Mr Zoltan Aldott, Chairman of the Board for INA, presented the company’s results this Tuesday calling them among the best in the history of INA, and reminding that the Sisak Refinery continues to be a burden on the company.

INA Group revenue in 2017 came up to Kn 18.5 billion, 20% up from the year before. This seems to be primarily due to increase in oil prices and internal optimization. This pushed up INA’s net profit up to Kn 1.22 billion, compared to the meagre Kn 101 million in 2016. The EBITDA was Kn 3.2 billion, 52% up from the year before. Net debt was reduced to Kn 1.39 billion, pushing the debt to capital ratio down to 10.8%.

Two sectors that will require further work to meet the challenges ahead are marketing and refineries, as neither achieved positive results in 2017. The SIsak refinery continues to be the most serious burden on this segment, particularly in light of major investments ahead of INA in the coming years.

In 2017, Sisak lost Kn 207 million which was better than the Kn 264 million the year before, but still far from satisfactory. Aldott said the entire system of refineries did better than the year before, but that the management intends to put in additional efforts in reducing the losses. The January (2018) decision to cut the FCC operations in Sisak was a step in that direction. Aldott stressed that this did not mean that the refinery would be shut down, nor that its operations would change dramatically. “Only that some other facilities could operate on permanent basis in the future, which they couldn’t over the past several years, and that this could bring some positive results”.

Asked if the situation in Sisak is a result of failure to fulfill the contractual obligation to invest in Sisak refinery fifteen years ago, Aldott said that the state of the refinery is primarily a matter of the market, which nobody could have foreseen ten or fifteen years ago. “Sisak was a market issue even twenty or so years ago. The question is whether there is sufficient work in Croatia for two refineries, and we see that there isn’t. Croatia needs large and modern capacity refinery and that can be achieved in Rijeka”, said Aldott.

He also stressed that the company is preparing an investment in Rijeka worth around EUR 400 million. A strong balance sheet enables INA to start strong strategic investment, with focus on Croatia. Capital investment expenditures in 2017 stayed level at Kn 1.4 billion.

Aldott refused to be pushed on Petrokemija and INA’s intentions, saying that the company would review all and any investment opportunity but there are no reasons why that should be done because of some pressure. He said that Petrokemija is a very important and solid partner when it comes to gas sales, but over the past several years it accumulated debt to INA and other suppliers which it must reduce. “Cooperation will continue”, said Aldott.