Energy Crises Have Shown: INA is a Pillar of Resilience and Transformation

In yet another year marked by global uncertainty, significant geopolitical changes, and an unclear macroeconomic picture, INA has remained the largest Croatian company and the foundation of the energy system’s resilience. In challenging times, adapting to new market conditions is not just a matter of opportunity but a strategic imperative. INA is aware of the challenges on the horizon and applies important lessons learned during recent energy crises in its operations, which have once again demonstrated the importance of walking the path between resilience and transformation, relying on its own resources. Daily, INA ensures the supply of oil and gas, meets fuel needs, and continuously improves retail locations, which are no longer just traditional gas stations but are recognized as places for pleasant rest and supply during short and long journeys, representing the business of the future. Concurrently, alongside all of the above, the company is building a sustainable future.

After a stable 2024, in which net sales revenue amounted to 3.88 billion euros, with CCS EBITDA excluding one-off items at 469 million euros and investments of as much as 292.2 million euros, INA continues to record strong business results this year. In the first six months of 2025, CCS EBITDA excluding one-off items reached 188 million euros, representing an 18 percent increase compared to the same period last year, while net profit rose by 21 percent to 54 million euros. Such results confirm resilience and the ability to adapt to a dynamic market environment. Key factors contributing to a strong first half of 2025 included a favorable pricing environment for natural gas, higher retail sales volumes, and continuous growth in the non-fuel segment.

Research and Production – Development of Domestic Resources

The Oil and Gas Exploration and Production (IPNP) segment achieved EBITDA of 148 million euros in the first half of 2025. IPNP continues to invest in projects that strengthen domestic production and long-term energy security.

A new gas field has been confirmed in the exploration area Drava-03 at the Obradovci-5 well, with initial resources estimated between 120 and 150 million cubic meters of gas. After a commerciality analysis, the well will be brought into production by the end of 2028.

The first phase of exploration in the onshore block SAVA-07, where INA is a partner with Vermilion, has shown exceptional success, with hydrocarbon discoveries at four wells. In July of this year, new gas production began at the Jamarice exploitation field, thanks to the rapid and efficient realization of the Jamarice-183 well project, which produces 33,500 cubic meters of gas daily. As part of the strategy to strengthen domestic production in the seabed, INA and Energean have begun investments in the development of the Irena gas field in the northern Adriatic, which is part of the Izabela exploration block.

Refineries and Marketing – Modernization and Sustainable Fuels

The Refineries and Marketing segment recorded strong results in the first half of 2025, thanks to increased sales and continuous margin growth in the non-fuel segment. CCS EBITDA amounted to 64 million euros, while the simplified free cash flow was positive and reached 17 million euros.

The upgrade project for the Rijeka Oil Refinery has reached 97 percent completion, and the modernization of the facility will enable the processing of heavy residues and the production of more diesel, after the demanding process of starting the new facility in trial operation is completed. It is noteworthy that this summer, INA produced sustainable aviation fuel (SAF) and renewable diesel HVO for the first time, further reducing the carbon footprint and ensuring compliance with European regulations on the decarbonization of transport.

To contribute to environmental protection and permanently resolve the issue of historical pollution, a project to build a hydraulic barrier beneath the Rijeka Oil Refinery has begun. The project, valued at six million euros, is being implemented in three phases over two years, with completion expected in the first half of 2027. The hydraulic barrier allows for controlled collection of liquids and prevents seepage into the sea, significantly contributing to environmental protection.

Retail – Growth and Innovative Concepts

The retail network continued to record positive trends, with increased demand during the tourist season. The non-fuel segment is experiencing continuous growth, and the modernization of locations and the expansion of the Fresh Corner gastro concept are raising standards for customer experience and contributing to revenue diversification. Through the INA Loyalty program, which has nearly 800,000 members, around 20,000 feedback responses are received each week. These insights help both INA and Fresh Corner to continuously develop and adapt to customer needs. This year, dozens of retail locations will be further modernized, the gastro offering will be expanded, and every location will be made even more pleasant for our customers.

The government’s decision to abolish the regulation of retail fuel prices represents an important step towards a market-oriented business environment. The market has proven to be a good regulator, especially given that retail fuel prices are now lower than in the last year of regulation.

INA’s Green Portfolio

In line with its long-term development guidelines, INA plans investments in the production of electricity from renewable energy sources amounting to several tens of millions of euros over the next few years. Progress in the development of solar power plants has been achieved with the realization of two important investments – SE Virje and SE Sisak, which together produce 16 GWh of electricity annually. Solar power plants are planned for two more locations: Banova Jaruga and Kostrena, with a total installed capacity of over 57 MW.

The portfolio also includes the construction of a green hydrogen facility, the first of its kind in Croatia, which involves a solar power plant as part of the Rijeka Oil Refinery (12.9 MW), which will serve for electrolysis. At the same time, a project for the production of biomethane in Sisak is being developed, which will use agricultural residues and biodegradable waste for production.

Sustainability – Opportunities, but also Significant Risks

INA is also exploring potential in geothermal energy in the exploration blocks Leščan and Međimurje. INA’s goal is to find sources of geothermal water that have a sufficient gradient for electricity production. Later, it is possible to develop geothermal projects in other directions, e.g., residual thermal energy obtained from geothermal water in a secondary process can be used for heating residential spaces, greenhouses, and for industrial use.

With over 60 years of experience in drilling and managing wells in Croatia and worldwide, experts at INA and Croscu possess extensive knowledge that can be applied in the development of geothermal projects, both INA’s and those on concessions from other investors. It should be noted that geothermal drilling is more expensive and riskier than traditional oil and gas production, which entails significant investments and state support within the framework of incentives for the development of green energy.

For all investments in renewable energy sources, a stimulating and predictable regulatory framework is crucial, where all investment costs are known in advance, as well as opportunities for co-financing from EU and national funds and the speed of issuing necessary permits. INA recognizes significant room for improvement in the realization of its projects, especially regarding timelines. Currently, the average duration of project implementation exceeds five years, and our goal is to shorten these processes, which is not possible without a more favorable economic climate and a stimulating environment.

In 2026, INA will continue to build on the results achieved, and the ambition remains the same – to remain the foundation of the energy system in times of global challenges.