NIS Announces Consolidated Operating Results for the Three Quarters of 2016
November 1, 2016
NIS Announces Consolidated Operating Results for the Three Quarters of 2016Despite the fact that the average prices of Urals crude oil in the first three quarters of 2016 were approximately 27 per cent lower than last year, NIG Group had positive financial results. NIS Group significantly improved the result from the first half of the year, when the net profit was RSD 3.1 billion, and ended with a net profit of RSD 7.7 billion in the first nine months of this year. The positive results achieved are largely attributed to the implementation of the operational efficiency improvement programme, the effects of which in the first nine months of 2016 are estimated at RSD 5.7 billion.
A positive result was also achieved with regard to operating indicators, many of which are over and above the Business Plan. The total sales of petroleum products in the first nine months of 2016 was 2.414 million tonnes, which is 3 per cent higher than last year. A good result was achieved in foreign assets, where the volume of sales increased by 34 per cent compared to the same period last year. In addition, NIS increased its share in the Serbian retail market by 1.3 per cent in comparison to the same period last year, and it now amounts to 42.7 per cent. A better result was also achieved in Energy, where the electricity output was 104,305 MWh or 21 per cent more than in the first nine months last year. The total output of oil and gas in Serbia and concessions was 1.108 million conditional tonnes, which corresponds to the planned output, while the oil refining volume was 2.376 million tonnes.
However, low prices of crude oil affected the financial results of NIS Group: EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) amounted to RSD 22.5 billion in the first nine months of 2016, i.e. 30 per cent less than in the same period last year. At the same time, NIS Group liabilities in terms of taxes and other public revenues were increased and amounted to RSD 117.5 billion in the first three quarters of 2016, which is by 7 per cent more than in the same period last year.
Despite negative market trends, NIS did not forsake a responsible approach to its shareholders, employees and the local community. In September 2016, shareholders were paid over RSD 4 billion or 25 per cent of the net profit in 2015. NIS continues to pursue the course of Corporate Social Responsibility and invest in the community where it does business. The third quarter of this year saw the announcement of results of the open application procedure within the framework of the corporate programme entitled Together for the Community, based on which NIS is going to support projects in 11 municipalities across Serbia with RSD 110.5 million. The effort to improve occupational health and safety was also not abandoned, so significant results were achieved in this area, too – the Lost Time Injury Frequency indicator was by 50 per cent lower compared to the same period in 2015.
Kirill Kravchenko, the Chief Executive Officer of NIS, stated,“The results we achieved once again prove that we have created a good and resilient business model. We have remained a leader notwithstanding complex macroeconomic conditions. In nine months of 2016 we invested a total of RSD 14.5 billion, which proves the standing of NIS as the leading investor in Serbia. It is our ambition to be the first and the most efficient company in the country. We expect the 2016 operational efficiency measures to result in total savings of over RSD 8.5 billion. This will make it possible for us to maintain profitability and continue to develop NIS.”
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Other news from month: November 2016
November 24, 2016
Report on company body’s session – 79th NIS j.s.c. Board of Directors meeting by correspondence held
November 2, 2016
Quarterly report for the third quarter of 2016
November 2, 2016
Interim condensed financial statements for nine months of 2016