financial results for h1 201 4
DESCRIPTION
Financial results for H1 201 4. Zagreb July, 2014. %. Net profit growth of 76%. Total EBIT of INA Group HRK millions. Total net profit of INA Group HRK millions. + 5 3 %. + 76 %. Key takeaways - PowerPoint PPT PresentationTRANSCRIPT
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Financial results for H1 2014ZagrebJuly, 2014
22Regional Energy Overview_v7.pptx
Total net profit of INA GroupHRK millions
2
Net profit growth of 76%
Total EBIT of INA GroupHRK millions
H1 2013 H1 2014
349
534
H1 2013 H1 2014
211
372
Key takeawaysSignificant improvement in profitability despite a difficult market and adverse regulatory changesDecreasing realized hydrocarbon prices and moderately declining total hydrocarbon production Depressed refining environment, lower average crack spread by 22% - continuous losses due to
structural weakness despite strong market share, efficiency improvement, yield improvementConsiderable increase in investments (+33%)Financial position improved as gearing level decreased to 24.3% from 25.8% in H1 2013 Operating cash flow remains strong on the level of HRK 1,184 millionIncreasing crude oil production from existing assets by 3% - contribution of 4P projectContinuation of filling station modernization program – 190 modern stations altogether to date
+53%+76%
33Regional Energy Overview_v7.pptx
H1 2013 H1 2014
364487
117
15819
20
Upstream Downstream Other
500
665
3
Investments growth by 33%InvestmentsHRK millions
+33% CAPEX increased by 33% compared to the same period 2013
Majority invested in Croatia, mainly in Upstream segment
Upstream Offshore development drilling campaign
on Ika field EOR program Extensive workover on domestic onshore
fields Downstream
Regular Sisak refinery turnaround Focus on modernization and capital
reconstruction of petrol stations including new autogas filling sites
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Further improvement of financial position
2010 2011 2012 2013 H1 2014
9,9389,115
6,664
4,761 4,269
INA Group net indebtedness decreased by 18% compared to the same period last year
Gearing ratio reduced further to 24.3% following the trend in the last three years
Operating cash flow provides a solid base for current investment growth and selected future value-creating investments
Net indebtedness(HRK mln)
Gearing ratio(%)
4
2010 2011 2012 2013 H1 2014
43.72
38.82
30.83
27.0024.30
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Significantly improved operational and safety performance
2011 2012 2013
LTIF= Lost time injury frequency
2.6
2.1
1.6
WHOLESALE MARKET SHARE
CROATIA
REFINERY OWN CONSUMPTION
AND LOSS %14.9%
13.1%
11.7%
NUMBER OF MODERNIZED
FILLING STATIONS (CUMULATIVE
PRODUCTION DECLINE OF DOMESTIC OILFIELDS%
3%
2%
6%
NUMBER OF EPLORATION
WELLS DRILLED IN CROATIA
66%67%
73%
63
130
160
7
1
2
66
INA’s motor fuel market share in Croatia
INA’s market performance: increased market share despite market shrinkage and fierce competition
INA’s motor fuel market share in Bosnia
INA’s motor fuel market share in Slovenia
2007 2008 2009 2010 2011 2012 201330%35%40%45%50%55%60%65%70%
2007 2008 2009 2010 2011 2012 201360%62%64%66%68%70%72%74%76%78%80%
Croatia: - Steep Increase from 64% (2011) to 73% (2013) despite market shrinkage and fierce competitionBosnia & Herzegovina: - Continuous increase from 37% to 48% over the last 4 yearsSlovenia: - From practically zero to more than 10% in a year, made available by sizeable refinery investments improving product quality
2007 2008 2009 2010 2011 2012 20130%
2%
4%
6%
8%
10%
12%
Start of full wholesale supply of
Tifon
Completion of large-scale refinery
modernizetion investments, improving
product quality
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Agressive investments growth
Investments in 2012 and 2013HRK millions
2012 2013
1,166
1,655
120
358
Domestic International
1,286
2,013+57%
55% of EBITDA reinvested, more than 80% was invested in Croatia with Upstream being the main driver.
HRK 12.6 bn CAPEX in 2009-2014 H1, HRK 10 bn of which in Croatia, of which HRK 2.5 bn on refinery modernization
2,012 2,013
746
1,396
457
545
83
72
Upstream Downstream Other
2,013
1,286
+87%
+19%
Investments 2009-2014 H1HRK millions
7,936 2,475
1,469 691
Exploration & ProductionRefinery modernizationR&M otherRetail
HRK 12.6 bn
Disclaimer
▪ This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capital expenditure, cash flows, costs, savings, debt, demand, depreciation, disposals, dividends, earnings, efficiency, gearing, growth, improvements, investments, margins, performance, prices, production, productivity, profits, reserves, returns, sales, share buy backs, special and exceptional items, strategy, synergies, tax rates, trends, value, volumes, and the effects of INA merger and acquisition activities. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include, but are not limited to developments in government regulations, foreign exchange rates, crude oil and gas prices, crack spreads, political stability, economic growth and the completion of ongoing transactions. Many of these factors are beyond the Company's ability to control or predict. Given these and other uncertainties, you are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which speak only as of the date hereof) to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as maybe required under applicable securities laws.
▪ Statements and data contained in this presentation and the associated slides and discussions, which relate to the performance of INA in this and future years, represent plans, targets or projections.
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