INA-Industrija nafte (INA) Q2 2024 earnings summary

Executive summary

• Stable results across all business segments in H1 2024, with continued strong investment and strategic expansion into renewables despite a significant drop in gas prices impacting overall results.

• CCS EBITDA was only 3% lower year-over-year, supported by improved retail and refinery performance.

• Strategic focus on compensating natural production decline and expanding into geothermal energy.

Financial highlights

• Revenue for H1 2024 rose 4% year-over-year to €1,744.9 million.

• EBITDA decreased 16% to €153.2 million, with net profit attributable to shareholders down 39% to €44.7 million.

• Net debt increased to €497 million, with a debt-to-equity ratio of 25.5%.

• Total capital investments grew 21% to €160.1 million.

• Operating cash flow was negative at €(112.4) million, reflecting higher investments and inventory.

Outlook and guidance

• Ongoing investments in refinery upgrades and renewable energy projects, including solar, green hydrogen, and biogas.

• Management expects continued stable performance, with focus on energy transition and efficiency improvements.