Higher revenue, improved margins boost INA profit in Q2

Figures

Croatian oil and gas company INA, a unit of Hungary's MOL, had second-quarter after-tax profit of HRK 484 million, improving from a HRK 168 mln loss in the base period as sales climbed and margins widened, state news wire MTI reports.

Revenue increased 71% to HRK 5.48 bln. Material costs rose at a slower rate, climbing 68% to HRK 4.17 bln.

In a statement released with the earnings, INA said the external environment had improved further in Q2 as Brent prices were over USD 60 per barrel and CEGH gas prices stood at EUR 24 per MWh.

"Product demand has increased close to pre-crisis levels in our core region, however the COVID-19 pandemic is not over yet, therefore economic recovery remains still fragile," INA added.

INA chairman Sándor Fasimon acknowledged the usual rise in retail sales at the end of Q2 related to the "better-than-expected" tourist season, but said "at this moment it is hard to give any forward-looking estimate".

"The third quarter will show the full result of the increased consumption and give us a better estimate of the total 2021," he added.

MOL holds just under 50% of INA's shares, but exercises management rights in the company. The state of Croatia is the other big stakeholder in the company.

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