Last year, marked by the Covid-19 pandemic, the INA Group made a loss of a whopping 638 million Kuna. And this large minus come after 2019 when they made a profit of 768 million Kuna, that’s quite a swing.
INA's financial report, published on Thursday, shows that the net sales revenue of oil company in 2020 reached 14.79 billion Kuna or 34.5 percent less than a year earlier. Clearly, with the Covid-19 pandemic with the subsequent lockdown and the recommendation to work from home fewer drivers need to fill up their tanks. And then there is the fact that the tourism industry, the main financial generator in the country, didn’t get off the ground last year. Tourism directly accounts for around 25 percent of Croatia’s GDP, however the indirect percentage is much, much higher. Fewer tourists, means fewer rent-a-cars, less buses and coaches and fewer excursions.
"In 2020, the INA Group managed to maintain a stable financial situation and continue with strategic projects, despite the fact that the year was unpredictable and challenging for many segments of the world economy, and the oil and gas industry was among the hardest hit. The unforeseen fall in hydrocarbon prices, initially fuelled by disagreements between OPEC + members and then deepened by the Covid-19 pandemic, has affected even the biggest players in the oil and gas industry,”said INA CEO Sandor Fasimon.
The report states, among other things, that the lower price of Brent by 34 percent resulted in 611 million Kuna lower revenues from the sale of crude oil and condensate, while lower gas prices resulted in 396 million Kuna lower revenues from the sale of gas.
Fasimon also assessed that the timely reaction of the management, which included the postponement of uncritical investments and numerous internal optimization activities, enabled INA to secure the company's financial position.
“With the economy adjusting to the ongoing pandemic, oil and gas prices began to recover in late 2020, but the return of the oil and gas industry to pre-crisis levels will not be quick. Therefore, INA will continue with its strategic projects and adaptation to the new environment, strengthening our future growth potential," concluded Fasimon.