NIS realizes net profit of RSD 27 billion in 2017

Naftna Industrija Srbije (NIS) announced yesterday that it had realized a net profit of RSD 27 billion in 2017, an increase by 80% compared to a year before.

– In 2017, NIS group considerably improved the financial results compared to 2016 and began realizing strategic projects which will secure the company’s further development as the leader in the petroleum product market in the Balkans – the press release points out.

The EBITDA of NIS in 2017 amounted to RSD 47 billion, an increase by 18% compared to 2016.

As explained, better financial results were made thanks to a growth of the prices of raw petroleum in the global market, foreign exchange gains, increased sales and the carrying out of the program of measures for increasing the operating efficiency in NIS, the effect of which on the EBITDA in 2017 is estimated at RSD 7.2 billion.

Last year, NIS invested RSD 26.5 billion, 2% more than in 2016, with the majority of the funds invested in research and production of oil and gas, as well as the modernization of the Pancevo oil refinery.

– The trend of growth of NIS’ tax and other public revenues continued as well, and they amounted to RSD 171 billion, 5% more than in 2016. For the fifth year in a row, NIS paid dividend to shareholders in the amount of 25% of the net profit from 2016 and set aside more than RSD 4 billion for the purpose – the press release says.

It is added that the total amount of the processing of petroleum and semi-finished products equaled 3.6 million tons, an increase by 9% compared to 2016.

NIS reminded that the construction of a deep processing facility featuring the technology of delayed coking had started at the Pancevo oil refinery in October 2017 and that the investment was worth more than EUR 300 million. The new facilities are expected to be put into operation in 2018, whereby the Pancevo oil refinery, as the press release adds, is to become one of the most modern refineries in Eastern Europe.

The NIS press release also says that the sales of oil products amounted to 3.5 million tons, 5% more than in 2016, as well as that three new gas stations opened, that 11 were reconstructed and that one was bought, and adds that the offer of premium fuels expanded in the region.

– NIS is entering a new cycle of investments and will invest nearly RSD 47 billion in 2018 alone, which is the biggest amount since 2013. I am convinced that the realization of the initiated projects and the implementation of innovative technologies would enable us to maintain the leadership in the regional energy market through the provision of quick and efficient responses to all the challenges of the modern market – stated Kirill Tyurdenev, CEO of NIS.

The majority owner of NIS, holding a 56.15% stock, is Russia’s Gazprom Neft, whereas the Republic of Serbia owns 29.87% of the shares.

NIS a.d. Novi Sad

JSC Gazprom Neft Moscow

Vlada Republike Srbije

NIS a.d. Petrol Rafinerija nafte Pančevo

NIS

net profit of NIS

NIS results

NIS financial results

petroleum product market

oil industry

EBITDA NIS

Gazprom Neft

price of raw oil

Pancevo oil refinery deep processing facility

sale of oil products

Kirill Tyurdenev

NIS operations