Croat Refiner INA Net Drops 93% in First Half on Low Oil Prices

  • Revenue drops 32 percent, while EBITDA declines 70 percent
  • 2016 is affected by ‘negative external environment: Aldott

INA Industrija Nafte d.d., the Croatian refiner controlled by Hungary’s Mol Nyrt., said its net income plummeted 93 percent in the first half of 2016 as oil prices continued to decline.

Profit fell to 23 million kuna ($3.4 million) from 328 million kuna in the year-ago period, the Zagreb-based company said by e-mail. Revenue dropped 32 percent to 6.3 billion kuna, while earnings before interest, taxes, depreciation and amortization was 70 percent lower at 453 million kuna.

“The year 2016 is and will be affected by the negative external environment, not only for INA but for other oil and gas companies as well,”  Zoltan Aldott, head of the management board, said in a statement. “This is why we are reviewing all our projects and processes to ensure a stable position and future growth.”

The company has been hurt because of plunging oil prices and the loss of income from Syria continued to affect profits. The refiner halted its gas and oil business in Syria in 2012 as civil war ripped the Middle Eastern country apart.

Mol owns 49.1 percent of the refiner, while the Croatian government holds a 44.84 percent stake. In the past four years, Croatia has attempted to increase its influence in INA, after Mol won controlling rights in 2009.

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