In 2019, NIS has implemented the most extensive investment program since 2013. In the further development and modernization of the NIS Group, 350 million euros was invested, which is 3 percent more than a year ago. Priority in investments was investments in the field of oil and gas exploration and production, further modernization of Pancevo Oil Refinery and development of retail network in Serbia and the countries of the region, as well as realization of environmental protection projects in all business segments.
When it comes to financial indicators, the net profit of the NIS Group for 2019 is 138 million, and the EBITDA indicator (profit before interest, income tax and depreciation) is 370 million euros. In the same period, liabilities of the NIS Group for taxes and other public revenues amounted to 1.5 billion euros. In the previous year, NIS was a safe source of income for its shareholders and 54 million euros was paid out in the name of dividends.
In 2019, NIS assets in Serbia and abroad produced a total of 1.286 million conditional tonnes of oil and gas, with an increase in hydrocarbon reserves. Oil and gas pilot production has been started on Romanian assets, while 700 km2 of 3D seismic tests have been conducted in Serbia. At the Pancevo Oil Refinery, a total of 3.373 million tonnes of crude oil and intermediate products were processed. Also, in 2019, a major refurbishment was carried out at the refinery, the most complex in the history of this plant, which has invested over 16.6 million euros. The post-overhaul period was followed by high refining capacity, with a record of 59,000 tonnes of bitumen being produced in October, the best monthly result in the last 10 years. In addition, activities on the construction of a deep processing plant with delayed coking technology were continued, with the completion of the project in 2020. The total turnover of petroleum products amounts to 3.702 million tonnes, with a 5 percent increase in retail sales and a 21 percent increase in inoactive sales. In 2019, the NIS Group continued to modernize its retail network, and three modern digital gas stations were opened on the highways in Serbia, while the construction of the 19th retail facility in that country – the Otopeni fuel supply stations – was finalized in Romania. In the field of energy, NIS, in cooperation with Gasprom Energoholding, started the construction of the Pancevo Thermal Power Plant. The completion of this project, which will significantly increase the capacities of NIS and its electricity production partners and contribute to the stability of the Pancevo Refinery, is planned in 2020.
NIS has also achieved remarkable results in the field of occupational safety – the indicator of injuries with lost days (LTIF indicator) is reduced by 25 percent compared to 2018. One of the focuses was on investments in environmental projects, during which 4.4 million euros were invested in 2019. In addition, NIS continued to invest in community development and invested over 3 million euros in socially responsible projects.
Kiril Tjurdenjev, General Manager of NIS, stated:
“In 2019, NIS achieved good financial and operating results, despite average oil prices being almost 10 percent lower than a year earlier, and a planned capital overhaul at the Pancevo Refinery had a significant impact on our operations. Thanks to the investments we have made in accordance with our Development Strategy, with great ambition we are entering into the year 2020 in which we expect the finalization of the Deep Processing and TPP TO Pancevo projects. Also, our irrevocable priority remains environmental protection, because for NIS, business is responsible to the community and natural resources as the only possible way to achieve business success”, Politika reports.
