We in the oil industry are already very well accustomed to crisis situations given the turbulent external environment over the past few years. We have timely undertaken a series of concrete measures to ensure business stability and continuity of supply in the Croatian market, says Zsuzsanna Ortutay, CEO of INA, and continues.
– First of all, we timely secured the necessary quantities of raw materials for a longer period than is usual practice, thereby further strengthening the resilience of the supply chain. All maintenance work at the Rijeka refinery was completed ahead of schedule, after which a safe and stable startup of the refinery occurred without incidents, resulting in an earlier start of fuel production than planned. We secured additional quantities of diesel to increase operational flexibility and ensured additional logistics capacities, including rail and road transport.
With this sudden peak in demand, logistics maximized the use of internal resources and secured additional capacities through contracted fleets. All these measures together enabled us to strengthen the system and ensure a reliable supply to the market. In every such case, our primary focus is on supply security, fulfilling our role in maintaining the functioning of the economy and the mobility of people despite the challenges we face as a company.
The volatility of crude oil, gas, and finished product prices has been extremely high since the beginning of March and is difficult to predict further. If disruptions in supply chains caused by the war in the Middle East persist, prices will remain high, while supply routes, the economy, and companies will readjust and find a ‘new normal’.
While the medium-term effects are still uncertain, in the short term, market disruptions negatively affect INA’s results due to increased raw material costs and regulated retail fuel prices. However, INA is an integrated company, with oil and gas production and refining. This at least partially provides a natural hedge against certain price movements and can even create certain opportunities.
Currently, there are too many variable parameters to provide reliable estimates. The company is financially stable, and its results will be further strengthened by the completion of the commissioning of the recently finished investment project for the modernization of the Rijeka Oil Refinery, which is planned for the upcoming period. Investment activities are currently not threatened. We are closely monitoring the market situation and, in the event of further unfavorable market or regulatory changes, the company will consider adjusting operational and investment costs as needed to ensure its financial stability. By 2030, the corporate world will be marked by sustainability, digitalization, geopolitical complexity, and workforce transformation. Companies, especially those in the energy sector, will transition from traditional fossil fuel-based models to integrated energy service provider models, diversifying their portfolios with renewable sources, hydrogen, biofuels, and carbon management services, not only as part of the green agenda but also as a source of energy independence.
