Ina has a vertically integrated business model that increases resilience to crises, but as long as the crisis in Ukraine continues, no one can be sure and guarantee that there will be no challenges. Here we share our fate with all of Europe. To minimize risks, Ina continuously monitors the situation and market movements, makes timely decisions, reacts to market changes, and responsibly manages its finances, said the CEO of Ina Péter Ratatics, adding that alongside its own production, Ina ensures market supply through imports by entering into contracts with reputable and reliable partners.
An additional challenge is certainly inflation, especially considering the strong investment cycle in which Ina currently finds itself.
– If we add to this the additional profit tax that will burden our company’s operations with more than 80 million euros, it is clear that this puts pressure on our investment plans. At this moment, our investment potential remains the same, but despite this, we are cautiously monitoring the impact of the external environment on our business. In the event of disruptions, we will reassess the profitability of each planned investment and decide on the best way to continue investing, emphasized Ratatics.
In such an environment, Ina will continue with the projects they have started, which ensure their long-term sustainable business. They plan to invest more than 250 million euros in oil and gas exploration and production in Croatia, with the most significant project in this regard being the construction of new gas platforms in the northern Adriatic.
At the same time, they are strengthening their foreign portfolio in Egypt, where they signed a contract for a new concession in the Egyptian Western Desert in February. Almost 600 million euros is being invested in the upgrade project of the Rijeka Oil Refinery, which Ina considers key to the sustainability of refinery operations.
– We are decisively moving towards a green transition, and in Sisak and Molvama, we are building the second-largest solar power plant in the country. Our plan is to make a strong leap in geothermal energy, in which we recognize potential. At the Rijeka refinery, we want to produce green hydrogen, and there are many other sustainable projects we are interested in. Our gas stations have also undergone a transformation into retail locations with a wide range of goods and services, along with the implementation of the Fresh Corner gastro concept. Our goal is to continue improving and expanding the retail network to maintain our leading position in the markets where we operate. Therefore, together with MOL, we are taking over the retail and wholesale operations of OMV Slovenia, which will contribute to strengthening Ina’s presence in the Slovenian market, concluded Ratatics.
Tax burden on cash generation
The report stated that higher fuel prices positively impacted sales revenue, as the strong effect of gas price regulation was only visible in the fourth quarter of last year.
They highlighted that investment activities in 2022 were the highest in the last ten years, with a growth of 71 percent compared to 2021, totaling 2.7 billion kuna, of which 95 percent was invested in Croatia. Additionally, the report emphasized that the previous year was further marked by ‘various regulations on prices and margins’ that affected the operational results of business segments, ‘and the imposed additional profit tax further burdened cash generation.’
