INA-Industrija Nafte d.d. · ZSE:INA
INA-Industrija Nafte d.d — INA Group — Q1 2011 Earnings Presentation
11 slides from INA-Industrija Nafte d.d's earnings presentation, Apr 29, 2011
Slide 1: INA Group Results and activities in Q1 2011
INA Group Results and activities in Q1 2011 Zagreb, April 29, 2011
Slide 2: INA Q1 2011 results at a glance
Focusing on stabilizing finances and preparing for future growth Further improvement of efficiency and significant investments to be implemented INA Q1 2011 results at a glance: Benefiting from improved environment Focus of 2011: Securing long‐term stability Improved efficiency and stabilized financ
Slide 3: Recovery of economy and INA's previous investments already visible in results
1 Recovery of economy and INA’s previous investments already visible in results Total net sales revenues of INA Group Total EBITDA of INA Group1 HRK millions HRK millions 6,943 2,019 5,636 5,234 90% 1,060 425 Q1 2009 Q1 2010 Q1 2011 Q1 2009 Q1 2010 Q1 2011 Net sales revenues increased backed by: Sig
Slide 4: The most demanding period of financial stabilization is behind us
2 The most demanding period of the process of financial stabilization is behind us But further financial consolidation steps are necessary in 2011 as well Net debt of INA Group Financial results of INA Group HRK billions HRK millions 11.1 10.0 8.2 68% 260 6.6 (890) (284) (810) FY 2008 FY 2009 FY 201
Slide 5: Further strict cost control to be implemented in coming years
2 Further strict cost control to be implemented in coming years Cost savings achieved between 2008‐2010 ▪ Efficiency improvement programs deliveri ng above the planned HRK 450 mn target ▪ Targeting more than HRK 100 mn savings annual ly in procurement Cost savings planned in INA Group in 2011‐12 Sig
Slide 6: Financial and Operational results at a glance
2 Financial and Operational results at a glance Average hydrocarbon production Q1 Q1 HRK mln. % thboe/d 2010 2011 Net sales revenues 5,636 6,943 23.2 75.54 56.04 63.10 19.7% EBITDA 1,060 2,019 90.5 Croatia oil and Profi t from ope ration 343 1,118 225.9 condensate Croatia onshore Profi t from ope ra
Slide 7: INA plans to provide the highest possible return to its shareholders
3 INA plans to provide the highest possible return to its shareholders Planning to intensively reinvest our profits in the coming years to achieve this goal Key investment projects in 2011 ▪ Initiating investments on Ivanic and Zutica oil ▪ Conti nuing refinery modernization fields to increase fi na
Slide 8: Launching the project of increasing oil recovery (EOR) on Ivanic and Zutica fields
3 Launching the project of increasing oil recovery (EOR) on Ivanic and Zutica fields Maximize recovery rates from existing fields ▪ Application of one of the so‐called tertiary enhanced oil recovery methods ▪ Alternating injecti on of carbon dioxi de and water in a partially depleted oil reservoir ▪
Slide 9: Intensified exploration activities
3 Intensified exploration activities Generate further value to shareholders and Croatia Recent success ▪ Zalata – Podravska Slatina: testing of Dravica‐1 well completed ▪ Novi Gradac – Potony: extended exploration activities until August 31, 2011 after promi sing results through Potony‐1 well ▪ Disc
Slide 10: Rijeka Phase-1 – Combine compliance & flexibility
3 RIJEKA PHASE‐1 – COMBINE COMPLIANCE & FLEXIBILITY The first step towards an efficient, profitable Downstream Full 10 ppm diesel and gasoline production while reducing Product yields – basis and after Phase 1 environmental footprint ▪ Key focus was compliance with envi ronmental regulations 6% 0% ▪
Slide 11: Rijeka Phase-2 – Entering the top league
3 RIJEKA PHASE‐2 – ENTERING THE TOP LEAGUE Upgrade almost 1 Mt heavy residue to marketable white products with robust investment economics Supportive Market Environment Product yields – current and after Phase 2 ▪ Shrinking heavy fuel oil markets due to tighter product s peci fications 6% 0% 1% 6% 5