Following the unforeseen and unprecedented market turmoil during the first half of 2020, results of Croatian multinational oil company INA dropped compared to last year.
With the easing of restrictive measures connected to COVID-19 pandemic, the global oil market has stabilised, but the oil and gas industry is far from full recovery.
“2020 continues to prove itself as one of the most challenging years for the oil and gas industry,” said Sándor Fasimon, President of the Management Board of INA. “Following the outbreak of COVID-19 pandemic many countries implemented gradual easing of restrictive measures which helped move the economy from a standstill. But for the oil and gas industry recovery is still not near, since demand returned only partially and the price levels, especially of gas, remain too low for many assets to operate profitably.”
CCS EBITDA of INA Group amounted to 813 million kuna (110 million euros), which is a 31 per cent decline compared to the same period in 2019 Exploration and Production result has been impacted by the combination of 12 per cent lower production due to natural decline and 35 per cent lower realised hydrocarbon prices. Furthermore, the pandemic and the decline in tourism resulted in a 16 per cent drop in Retail sales volumes, while the non-fuel revenues continue to increase.
In such unforeseen conditions, INA took swift operative and financial measures to adapt its operations, most significant being further streamlining of operations, reducing OPEX and postponing non-critical investments. Most of these strategic investments, which are continuing regardless of crises are focused in the refining segment as part of INA Downstream New Course 2023.