I N A G R O U P 27 R E S U L T S Zagreb, April 28
27 INA GROUP HIGHLIGHTS INA GROUP - highlights Sales revenues reached HRK 25.8 billion Operating profit increased 4.7% to HRK 1.2 billion EBITDA reached HRK 2.8 billion (13.3% increase) Exploration and Production Increased production and operating profit Reduced loss on regulated gas market Refining and Marketing Increased production of EURO IV fuels Total throughput and production increased by 9% Retail Network development in line with the retail strategy Average throughput per site in level with 26 Corporate and Other Efficiency programmes ongoing SAP fully integrated
KEY DEVELOPMENTS Exploration and Production El Alamein commercial discovery Sidi Rahman 1 production start-up INA MOL partnership Hydrocarbon reserves found in Podravska Slatina region Novi Gradac Joint venture CROSCO acquires Rotary International expansion in drilling and other well services Hayan block - Syria Jazal development phase Mustadira Notice of commercial discovery Rijeka refinery Rijeka refinery Sisak refinery Sisak refinery Refining and Marketing HDS unit contract awarded Hydrogen generation unit contract awarded Isomerisation unit contract awarded I. phase of the Claus unit completed Retail Shop sales increased by 5.9% 5 new premium sites built in line with the new retail strategy
DOMESTIC BUSINESS ENVIRONMENT GDP growth (%) CPI Inflation (%) % 6 3 5.3 4.3 4.3 4.8 5.9 % 4 2 1.8 2.1 3.3 3.2 2.9 23 24 25 26 27 23 24 25 26 27 Exchange rate movement 1 6 2 22 23 24 25 26 27 HRK/Eur HRK/USD 4
BUSINESS ENVIRONMENT Brent FOB Med (USD/bbl) Economy growth rates ( % ) 1 8 USD 75 5 4 5.8 4.9 2.5 25 23 24 25 26 27e 27 26 World Europe Middle and East Europe Premium unleaded petrol spread (USD/t ) 15 1 USD 5 25 26 27 5
EXPLORATION AND PRODUCTION
EXPLORATION AND PRODUCTION R e s u l t s (HRK millions) 26 27 % change Sales revenues 6,794 8,133 19.7 Operating profit 1,623 2,45 26. CAPEX 1,747 1,559 (1.8) Operating profit up by 26% Higher hydrocarbon production New discoveries of oil and gas 7
EXPLORATION AND PRODUCTION North Africa South East Europe Middle East Syria Commercial discover y on the Hayan Block expected productionof 5 m 3 /day Development of the Jazal fi eld CAPEX of HRK 278 mil (USD 52 M) Gas production Croatia Total CAPEX for the North Adriatic proj ect of HRK 256 milliion (USD 48 M) Podr avska Slatina-Zalata first positi ve results for gas Joint Explor ation Agreement for t he Novi Gradac Potony Area EOR and M eđimurje projects Egypt New discovery on the El Alameinf ield Sidi Rahman 1 new production field Total CAPEX of HRK 126 mil (USD 23 M)
EXPLORATION AND PRODUCTION 7 6 5 4 3 2 1 Average hydrocarbon production (Mboe/day) 65.3 53.8 58.2 4.1 32.8 29.6 7.4 8.5 8.1 16.8 16.9 17.1 25 26 27 Crude Condensate Gas 2. 15. 1. 5. Production cost (USD/bbl) 19.8 16.3 14.9 11.7 1.4 9.3 9.2 8.8 8.3 7.7 7.5 7.1 6.5 5.5 25 26 27 Onshore Croatia Offshore Croatia Angola Egypt Syria Hydrocarbon production up by 12% Gas production up by 22% North Adriatic gas production up by 69% Average production cost 9.7 USD/boe Higher production cost reflects the exchange rates New fields in Egypt increased the production cost 9
EXPLORATION AND PRODUCTION Natural gas production (Bcf) Natural gas prices (HRK/Mcm/33.34MJ) 12 9 6 86.1 71.8 64.8 15,7 24,1 4,6 1.7 3 49,2 47,7 42,5 25 26 27 On shore Of shore Syria 8 25 26 27 Average Sales price Import price Gas production in 27: 86.1 Bcf. (up by 19.9%) Lower import price differential Regulated prices Import price differential (in HRK/Mcm/33.34 MJ) 25 26 27-3 -6-9 -12 Eligible Tariff Total
EXPLORATION AND PRODUCTION Hydrocarbon reserves (MMboe) 4 14,7 12,1 14,7 2 245,1 261,1 27,4 25 26 27 Proved Probable Proved reserves increased by 9.3 MMboe Proved reserves replacement ratio: 141. %
EXPLORATION AND PRODUCTION Crude and condensate production (MMbbl) Average crude oil price (USD/bbl) 1 75 2.7 3.1 3. 5 6 6.1 6.2 6.3 25 26 27 45 25 26 27 Crude Condensate Actua l Brent FOB Med
REFINING AND MARKETING
REFINING & MARKETING R e s u l t s (HRK millions) 26 27 % change Sales revenues 18,136 18,746 3.4 Operating profit 17 59 (65.3) CAPEX 85 985 15.9 With the Refinery Modernisation Programme CAPEX rose by 16 % Sales of EURO IV from own production increased by 19% Results strongly influenced by the price cap 14
REFINING & MARKETING Refining (kt) 6, 5,178 4,92 5,347 4, 2, 25 26 27 Domestic crude Imported crude Condensate Other feedstocks 15
Refining & Marketing - SALES By market (kt) By product (kt) 6. 6. 4. 2. 1,34 1,219 1,238 577 635 73 3,35 2,918 2,923 25 26 27 Croatia BiH Other markets 885 914 957 2,753 2,624 2,681 1,278 1,234 1,254 3. 25 26 27 Motor gasolines Gas and fuel oil Other products Total exports rose by 6% Sales in BiH up by 15% INA retained its strong market position in Croatia Fuel sales increased by 2.5% Sales of EURO IV-grade fuel (from own production) grew by 19% 16
RETAIL SEGMENT
RETAIL R e s u l t s (HRK millions) 26 27 % change Sales revenues 5,669 5,85 3.2 Operating profit 33 (9) CAPEX 117 212 81.2 In 27, revenues rose by 3.2% 18
RETAIL Sales (kt) Number of filling stations 1.5 1. 1,9 1,154 1,163 5 475 472 482 5 4 25 26 27 Motor gasolines Gas and fuel oil LPG Other 3 25 26 27 Croatia BiH Slovenia Diesel sales up by 4.4 % INA Card in total sales: 23 % Average throughput per site: 2,816 t 19
KEY FINANCIAL INDICATORS 21,7 23,434 25,848 1,13 885 883 869 2,985 2,966 2,474 2,83 17,988 15,345 594 1,756 23 24 25 26 27 23 24 25 26 27 23 24 25 26 27 Sales revenues HRK millions Net profit HRK millions EBITDA HRK millions
GEARING Gearing (%) Total debt (HRK mill) 3 5, 4,923 2 2.55 23.55 3,938 % 2,5 1 13.29 2,182 25 26 27 25 26 27 21
SEGMENTAL RESULTS 26 27 HRK mill 1,623 2,45 Corporate and other Retail 33 Rafining and marketing 17 59-9 Exploration and production -852-994
CAPITAL EXPENDITURE 1,747 26 27 1,559 HRK mill 985 85 382 14 117 212 Corporate&other Retail Refining&Marketing Exploration&Production 23
EFFICIENCY IMPROVEMENT PROGRAMMES OptINA Total OptINA improvements reached HRK 422 M SAP Went live in 2 packages; project officially closed Key OptINA efficiency projects include: - Procurement: Optimisation of purchasing of energy, travel, telecom, office supplies, MRO (spare parts), etc. Full procurement capabilitybuilding programme started to sustain savings - Maintenance optimisation: Reduction of HRK mill 8 6 4 2 Targeted Annual Improvements 223 161 422 652 26 27 28 Actual Plan 747 sub-contractor spending and improvement of work scheduling (prioritisation) and monthly budgeting - Reduction of Rijeka refinery bottleneck - Reduction of refining losse s and own consumption: Massive energy efficiency programme at both refineries (over 65 technical projects) - Working capital management
DISCLAIMER Some of the information in this presentation may contain projections and other forwardlooking statements regarding future performance of the Company. These statements represent plans, targets or predictions and actual results may differ materially as they are subject to risks, uncertainties and other factors such as general economic conditions, the competitive environment, exchange rates, oil and gas prices, margins, market changes, regulatory developments, etc. You are therefore cautioned not to place undue reliance on any forward-looking statements contained in this presentation. The Company does not undertake any obligation to release any revisions of these forward-looking statements.
CONTACTS Željan SImeonov, BSc.Econ. IR Head Phone: +385 1 / 64 5 12 Fax: +385 1 / 64 52 12 Fax-2-Mail: +385 1 /64 52 19 E-mail: zeljan.simeonov@ina.hr www.ina.hr INA Industrija nafte d.d. Av. V. Holjevca 1 1 Zagreb Croatia