Croatian oil and gas company INA, a subsidiary of Hungaryʼs MOL, had net profit of HRK 199 million in the first quarter, an improvement over the HRK 42 mln loss in the same period a year earlier, a quarterly earnings report shows, Hungarian news agency MTI reported.
Earnings per share was HRK 19.9 in Q1 2017 compared to a HRK 6.6 loss per share a year earlier.
Revenue jumped 48% to HRK 3.84 billion. Operating costs were up 30% at HRK 3.75 bln.
Revenue of INAʼs upstream business rose 25% to HRK 1.16 bln. Operating profit of the segment was up 49% at HRK 375 mln. INA noted the effect of higher oil prices on the business.
Crude oil production volume fell 7% to 14,100 barrels of oil equivalent per day (boepd) and total hydrocarbon production had a 3% decrease to 38,867 boepd.
Revenue of the downstream segment was up 68% at HRK 3.20 bln. The business had a HRK 34 mln profit, compared to the HRK 302 mln loss in the same period a year earlier.
INA noted that the external environment, largely in the form of recovering Brent prices, was the main driver behind the positive change in earnings. Constant efficiency efforts and continuous adjustments to operations given the market dynamics further contributed to the positive results.
CAPEX reached HRK 209 mln in Q1, down 39% compared to the base period. In the upstream segment investment level was lower due to different investment dynamics throughout the year while in the downstream segment spending was lower due to the Rijeka Refinery turnaround implemented in Q1 2016.
MOL holds 49.1% of INAʼs shares and exercises management rights in the company. The other big stakeholder in the company is the state of Croatia.