After the loses caused by the pandemic in 2020, 2021 showed a significantly improved external environment. Loosening pandemic-related restrictions and rapid economic recovery pushed the energy prices to high levels quicker than expected, thus boosting INA Group results.
CCS EBITDA excluding special items of INA Group in 2021 amounted to 398 million euros, with net profit rebounding from negative base to 174 million euros. Driven by doubled hydrocarbon prices compared to 2020, Exploration and Production segment is again the main contributor to the results with EBITDA of 332 million euros. However, natural decline of production on mature fields remains a challenge. Refining and Marketing including Consumer Services and Retail CCS EBITDA reached 119.5 million euros on the back of a better retail sales, both in fuel and non-fuel segments.
Investment activities increased throughout the segments compared to 2020 with CAPEX level of 212 million euros, of which roughly half spent in Refining and Marketing. The main strategic investment, Rijeka refinery upgrade project continues with focus on construction works and equipment delivery to the site.
INA successfully issued 265 million euros bond on domestic market in December 2021, creating a solid financial base for the intensive investment cycle ahead.
President of INA’s Management Board Sandor Fasimon said that, in 2021, the macro environment for oil and gas industry has improved thanks to the easing of restrictive measures and rising hydrocarbon prices. In such environment Exploration and Production once again spearheaded the recovered result, although the production natural decline continues in line with the mature portfolio. The other segments further supported the results, primarily retail due to improved fuel and non-fuel sale, also partially due to tourist season, which was better than expected.
This mainly externally driven improvement is a welcome relief period, but INA will use it to further strengthen its position for the upcoming period. Strong investment program is underway across the segments and also expanding to new areas. Challenge of production natural decline is addressed with intensive offshore campaign, already taking place and aiming to increase domestic gas production in the northern Adriatic. Rijeka refinery upgrade project is crucial in making INA Refining and Marketing sustainable on the long run, also helping the company to keep its strong position on core markets of Croatia, Bosnia and Herzegovina and Slovenia.
In time of changes in the energy sector, INA is committed to diversifying its portfolio and assisting the green transition, regardless of our core business. Two new solar power plants are going to be built at Virje and Sisak, which is an important step in the company’s green electricity production.
