Speaking of INA's results in 2010, when the group's net profit amounted to HRK 958 million as against a loss of HRK 392 million in 2009, Aldott said that efforts made by the management led to an increasing efficiency, significant savings and improved product quality.

Chief Executive Officer Bojan Milkovic said that INA achieved a 15.7-percent increase in the production of hydrocarbons thanks to growing production in the Northern Adriatic and in Syria.

On the other hand, INA made a loss of HRK 335 million in the gas sector and reported a 9.6-percent fall in the wholesale of petroleum products and a 5.9-percent fall in retail, Milkovic said.

Asked about the negotiations between the Croatian government and Hungary's MOL on the divestiture of the gas business from INA and whether INA would keep insisting on higher gas prices, Aldott said that there was no news and that INA was focused on the operative aspects of the gas business.

Asked whether MOL was still interested in investing in INA's oil refineries although the Hungarian group did not manage to become a majority owner in INA, Aldott said that INA's investment plan was not subject to changes in the company's ownership structure.

We deem the investment into the modernisation of the refineries to be important and helpful for our efforts to bring INA back to the markets in neighbouring countries, Aldott said.

Asked whether the recent appointment of Niko Dalic, the husband of Croatian Finance Minister Martina Dalic, to the INA management board constituted conflict of interest, Aldott said that it was shareholders who appointed management board members and added that he could only praise Niko Dalic for his work.

MOL and the Croatian government are two major shareholders in INA.

In response to reporters' questions whether whistle-blower Vesna Balenovic would be re-employed in INA, the company's corporate communications director, Zana Goic, said that Balenovic's employment in INA was terminated in 2001 and since then all rulings in court proceedings which Balenovic launched against INA have been in INA's favour. There is no legal grounds for compensating Balenovic, Goic told the news conference.

The INA Group's net profit in 2010 amounted to HRK 958 million as against a loss of HRK 392 million in 2009, reads a consolidated unaudited financial report the company published on the Zagreb Stock Exchange on Tuesday.

Net sales revenues last year totalled HRK 25.9 billion or 15.8 percent more than in 2009.

The group's overall results show renewed profitability and a significant improvement in its financial position.

The revenues went up mostly owing to increased prices and quantities of natural gas and foreign oil sold, higher production, as well as the introduction of new, EURO V products, the group said.

Capital investments amounted to HRK 2.89 billion, as against 4.5 billion in 2009, and the decrease was owing to the adjustment of the investment budget to market conditions, the group's financial position and its ability to generate money, reads the report.

INA Group's net indebtedness increased to HRK 10 billion as against HRK 8.2 billion at the end of 2009.

The group's assets at the end of 2010 amounted to HRK 31.3 billion, 4 percent up from the previous year.

The group's overall liabilities on 31 December 2010 totalled HRK 18.4 billion, 1 percent up from 31 December 2009, mostly due to higher indebtedness.