INA swings to a first-quarter loss as gas prices soften and volatility rises, even as capex accelerates

After delivering a profitable start to the previous year, Croatia’s INA has entered 2026 with a negative result, reporting a first-quarter loss of €2.3 million. The shift marks a sharp reversal from the €35.4 million profit recorded in the same period a year earlier, underscoring how quickly earnings can be reshaped when commodity markets turn volatile.

Revenue down, costs barely move as EBITDA declines

In January through March 2026, INA generated €876.7 million in revenue from core operations, down 5% year on year. Operating costs decreased only slightly—by 1% to €875.5 million—leaving the company with tighter profitability. EBITDA fell to €70 million, down 17% compared with the prior year period.

The company linked part of the weaker performance to falling natural gas prices early in the year. It then pointed to renewed geopolitical tensions in the Middle East that increased volatility across oil and gas markets, affecting conditions for both pricing and margins.

Mixed operating picture: refining stability and retail volume growth

Despite financial pressure, some parts of INA’s business showed resilience. Refining and marketing remained stable, while retail operations recorded a 5% increase in sales volumes during the quarter—suggesting that demand dynamics were not uniformly deteriorating even as market conditions became more challenging.

Rijeka refinery ramps up; upstream output rises with continued investment

On the operational front, INA said its Rijeka refinery returned to full capacity following modernization and catalyst replacement. The delayed coking unit is in its final testing phase and is expected to be fully operational by year-end. Once fully ramped up in 2027, it could increase annual diesel output by up to 30%, potentially improving future earnings power if market conditions stabilize.

In upstream production, INA reported output up 2.3% year on year. The increase was supported by investments and maintenance activities in Croatia and Egypt, along with new projects including the offshore Ika A field—evidence of continued expansion even as near-term financial results weakened.

Exploration deal expands portfolio; capex more than doubles

INA also moved to strengthen its exploration pipeline by signing an agreement with Vermilion Zagreb Exploration to acquire a 60% stake in the SAVA-07 onshore block. Full ownership would follow pending government approval.

Capital expenditure rose sharply to €76 million in the first quarter, more than double the €33 million spent a year earlier. The jump highlights intensified spending on strategic projects at a time when earnings were under pressure—an important consideration for investors assessing how management balances growth investments against margin headwinds.

Low-carbon initiatives continue alongside financial strain

CEO Zsuzsanna Ortutay characterized INA’s performance as stable given the challenging environment, while pointing to progress on low-carbon initiatives. One key project is a €61 million green hydrogen initiative in Rijeka, supported in part by national recovery funds. The effort is intended to provide cleaner energy solutions for industry and mobility while advancing long-term decarbonization objectives.

Taken together, INA’s first-quarter results reflect an earnings squeeze driven by softer gas prices and heightened market uncertainty—yet paired with ongoing operational improvements at Rijeka, rising upstream production, and faster capital deployment into both conventional projects and decarbonization plans.