The company NIS in the period 2010-2020 was among the leading domestic employers, investors and exporters, and the average annual direct contribution of this company to the domestic gross domestic product (GDP) was 5.1 percent, is the result of a study by the auditing and consulting company KPMG on the economic impact of NIS in Serbia.
The results of the study were presented today at an online panel attended by Anton Cherepanov, Deputy General Director and Chief Financial Officer of NIS, Biljana Bujic, Partner in the Tax and Legal Department of KPMG, Aleksandar Vlahovic, President of the Association of Economists of Serbia and Radojka Nikolic, Editor Business magazine.
As it was said, more than three billion euros were invested in the development of NIS, and the average annual investments of the company in the period from 2010 to 2020 amounted to 274 million euros. In the same period, the average annual contribution of NIS to the gross value added of Serbia was about 2.6 percent, or an average of about 816 million euros. The average annual direct contribution of NIS to gross value added in the business sectors was about 4.7 percent, while the impact on economic activities in which the company operates was about 12.1 percent. As a result of the company’s operations, more than 1.1 billion euros or about 15.3 percent of the total tax revenues of the budget of the Republic of Serbia are paid annually into the Serbian budget through paid taxes. Also, in the previous decade, NIS was at the top of the list of domestic exporters with an average annual export worth 262 million euros.
In 2019 alone, the company NIS, with 511 million euros, achieved the second largest added value to the economy, ie the largest contribution to the economy of the Republic of Serbia among domestic companies with foreign capital. In the same year, NIS was the most profitable company in the Republic of Serbia with a net profit of 150 million euros.
At the same time, NIS is one of the leading domestic employers with about 11,000 employees, while the average annual economic impact of the company on employment is more than 22,440 people in related activities and sectors of the wider economy of the Republic of Serbia.
The company’s investments in environmental protection projects are also of great importance. In the period 2010-2020, NIS has invested a total of about 900 million euros in environmental projects, as well as projects that create an environmental effect and their implementation significantly affects the improvement of the environment.
Anton Cherepanov, CFO of NIS, pointed out that the company achieved these results thanks to significant investments and modernization in all business segments, as well as thanks to good shareholder relations and commitment of management and all employees.
“During the previous period, all business indicators were significantly improved, the business was diversified into the electricity generation and trade sector, and we started doing business in the countries of the region. Of special importance are our environmental investments, which we will continue in the coming period. I want to emphasize that we have not only invested in business, but that we have also supported the development of our community because we have invested more than 34.7 million euros in socially responsible programs since 2009,” said Cherepanov.
Speaking about the study, Biljana Bujic, a partner in the tax and legal department of KPMG, said that its specificity is that it is not only the influence of NIS in the company’s business sectors, but also the impact on the economy of the entire country.
“We measured the economic impact of NIS on the Serbian economy, through four measures – production, gross value added, employment and income. The study covered the period from 2010 to 2020, and the paper used data from the Republic Statistical Office of Serbia and NIS data. During these 11 years, the company has invested about three billion euros, of which about 30 percent has been invested in environmental projects. We compared NIS at the level of the complete economy, but also the sector within which it operates,” said Biljana Bujic.
Aleksandar Vlahovic, President of the Association of Economists of Serbia, referred to the situation in which the company NIS was before the privatization in 2009.
“Since the first year after privatization, capital investments have increased 3.6 times annually. After the modernization of the Pancevo Oil Refinery, NIS received fuel of European quality, conditions for the renovation and renovation of existing gas stations, but also for the opening of new ones. What is also necessary to mention is that NIS has entered the field of production of clean, environmental electricity, where energy is produced on oil wells in an environmentally and responsible way,” said Vlahovic.
Radojka Nikolic, editor of the “Business” magazine, also spoke about the importance of the NIS company for the domestic economy.
“Today, NIS is no longer the same company as it was before privatization. We got a modern, well-organized corporation on a par with world companies. From a former largest importer, NIS has transformed into one of the largest exporters in the country. The benefits of environmental investments for industry, economy, but also the impact on better living conditions of end users are invaluable,” said Radojka Nikolic.
At the end of the panel, the financial director of NIS announced that the company would continue with investments.
“By 2025, we will invest another one billion euros in all business segments. Also, we will continue with environmental projects, but also with the support of the community,” said Anton Cherepanov, Beta reports.
