Cheaper crude oil from Russia has so far accounted for 34 percent of the total processing of the Oil Industry of Serbia (NIS) this year, which is more than double the increase compared to last year, so the triple profit in the third quarter can be partly explained by this , Jelena Zindović , senior corporate finance analyst at Bloomberg Adria, said on Monday.
“According to the data from September, that participation has increased significantly”, said Zindović and added that oil, “as a cheaper raw material, directly influenced the growth of profitability.”
The profit, which since the establishment of the company was higher only in the previous quarter, was also affected by the position the company won at the expense of its competitors, Zindović states. This was done by offering oil to agricultural producers at lower prices, as well as by limiting the prices of oil derivatives, which led to the “weakening of the gray market”.
The company’s profitability has also increased thanks to earlier investments that allowed it to process larger quantities of products with greater added value, Bloomberg Adria reports.
