NIS presented its financial results for first quarter of 2013. on Belgrade Stock Exchange

Net profit of NIS on the basis of the results of the first quarter of 2013 was 8.3 billion dinars , equivalent to the level of the indicator for the same period last year.

Aggravating effect on the company’s financial results were negative macroeconomic factors: the decline in hydrocarbon prices – oil and natural gas, the increase in VAT and income tax , the decline in consumption in the domestic market (compared to the first quarter of 2012 – around 8%), which, among other things, challenged and increased excise taxes on petroleum products.

Operating income before interest payments, income taxes , depreciation and amortization, or EBITDA, amounted to 12.1 billion, which corresponds to the level defined in the business plan of the company, but is 22% lower than the same ratio for the first quarter of last year.

Thanks to stricter policies receivables, operating cash flow (OCF) for the reporting period amounted to 9.8 billion, which exceeds last year’s figures five times.

The amount of tax and other allocations, accrued in the first quarter of 2013, to be paid to the budget of the Republic of Serbia, is 19.9 billion, which is 27 % higher than the same indicator in the first quarter of 2012.

Investment of NIS in developing manufacturing base and environmental projects in the first quarter of 2013 amounted to 12.19 billion dinars, or 59% more than the same indicator last year.

Thanks to the introduction of new technology solutions and implementation of additional geological and technical measures, the volume of production of hydrocarbons NIS is better than in the first quarter of 2012 by 5% amouting to 411 thousand tonnes of oil equivalent.

In the first quarter of 2013 the company processed in refineries 523 thousand tons of oil – 27% more than in the same period last year. Growth in processing is a result of commissioning of the new complex light hydrocracking / hydrotreating ( MHC / DHT), whose construction was completed in October 2012. Sales of NIS oil products in the first quarter of 2013 amounted to 566 thousand tons, an increase of 12% over last year indicators. The increase in the volume of sales is a result of implemented program with aim to increase the efficiency of the retail network and the start of its active work outside Serbia, strengthening policies with wholesale buyers, as well as through local marketing programs. Thus, the volume of retail sales in the domestic market exceeded the level of the first quarter of 2012 by 6 % and wholesale by 5%. Compared with the first quarter of 2012 the company increased its exports of petroleum products by 9%.

The total credit debt of NIS on the basis of the results of the first quarter of 2013 amounted to 441 million dollars.

Commenting on the results of NIS in the first quarter of 2013, NIS CEO Kiril Kravchenko said: “We assess extremely restrained what has been achieved in the first three months of this year. Unfortunately, the negative external factors have a serious impact on the business performance of NIS. As of today, we realize that it will be very difficult task to maintain the financial results of the company from last year. Thus, our priorities are to end the continued introduction of new technologies and innovations, increasing the efficiency of production and management processes, implementation of the investment program, despite increased external difficulties, and the development of client programs in sales of petroleum products and increase our market share.”