MOL's INA Sees Croatian Investment Environment Improving -Agency

Croatian refiner INA-Indusrtija Nafte d.d. (INA.ZG), majority owned by Hungarian oil and gas firm MOL Nyrt. (MOL.BU), sees Croatia's investment environment improving, INA Chairman Zoltan Aldott told state news agency MTI Tuesday.

MOL and its ownership in INA were heavily attacked last year, an election year in Croatia, amid a fight for votes between the campaigning parties. But due to changes in the parliament and with a new government these have ceased, Aldott said.

The Croatian government, which has a 44.84% stake in INA, is also interested in raising the company's market share and strengthening its position in the south-eastern European region. MOL has a 47.2% stake in the company.

The firm plans to re-invest all of its 2011 profits of 1.9 billion kuna ($333 million) this year into developing its gas station network and its refineries in Sisak and Rijeka, as well as international and Croatian production.

"INA is one of the few European companies that believes in the future of refineries," Aldott said, adding the firm will start an investment program of about $450 million at the refineries.

INA doesn't expect any revenues from its Syrian operations this year due to the heated political situation, and it didn't see any profits from those operations in the last quarter 2011.

-By Veronika Gulyas, Dow Jones Newswires; [phone]; [e-mail]