NIS makes RSD 3.1 billion in net profit in first half of 2016

Naftna Industrija Srbije (NIS) maintained its profitability and made a net profit of RSD 3.1 billion (EUR 25.1 million) in the first six months of 2016, despite the challenges embodied, above all, in low prices of crude oil in the world market. The result achieved is that much more significant considering the fact the the net profit in the first three months was RSD 261 million, NIS reported.

Most operating indicators point to successful operations. The total turnover of petroleum products amounted to 1.55 million tons, an increase of 6% compared to last year. The foreign assets turnover increased by 38% compared to last year, whereas the share in Serbia's retail market increased by 1% to 43%.

The volume of processing of petroleum and intermediate products increased by 16% to 1.75 million tons. Petroleum and gas production reached 743,000 tons in the first half of 2016, whereas the reserves of hydrocarbon increased by 3.7%. The production of electrical energy reached 74,336 MWh, an increase of 27% compared to the first half of 2015.

Direct and indirect tax liabilities of NIS Group amounted to RSD 76.3 billion and are higher by 13% compared to last year.

NIS continued the preparations for the realization of strategic investment projects in cooperation with its foreign partners, such as the deep processing project at the Pancevo refinery. Activities of the preparation of the TE-TO Pancevo project were continued as well and the project will be realized in cooperation with Gazprom Energoholding.

The prolonged crisis in the petroleum sector nevertheless had certain consequences on the company's results. EBITDA amounted to RSD 13.2 billion in the first half of the year, which is 37% less than last year.

As a socially conscious company, NIS pronounced the year 2016 to be a HSE (Health, Safety, Environment) year, and made work health and safety and environmental protection its absolute priorities. Significant results were achieved in this field in the first six months of 2016.

– That the road chosen by NIS under the circumstances of a global crisis in the oil and gas industry is the right one has been confirmed once again by good results in the first half of 2016. NIS has chosen to respond to the prolonged crisis in the oil and gas sector by continuing to consistently carry out the program of increasing operating efficiency in all areas of our operations, the effect of which amounted to RSD 4.4 billion in the first half of the current year – stated Cyril Kravchenko, CEO of NIS.

He also emphasized that NIS hadn't given up on key investment projects and that it had invested nearly three times as much as its net profit in the first six months of 2016, in spite of the crisis – a total of RSD 9.1 billion.

NIS a.d. Novi Sad

NIS a.d. Petrol Rafinerija nafte Pančevo

Gazprom energoholding Serbia TE-TO Pančevo d.o.o.

Gazprom Moscow

NIS

Cyril Kravchenko

price of oil

Pancevo oil refinery

TE TO Pancevo

Gazprom Energoholding

social consciousness