NIS releases consolidated business results for the first quarter of 2017

NIS released Consolidated Business Results for the first quarter of 2017, prepared in accordance with International Financial Reporting Standards.

In the first quarter 2017, NIS Group significantly improved its financial results. The net profit amounted to 5,4 billion RSD which is massively better performance than the one accomplished in the first quarter 2016 when the net profit was 261 million RSD. Other than that, the EBITDA indicator (earnings before interest, income taxes, depreciation and amortisation) in the first quarter 2017 was 11.1 billion RSD, which is almost three times more compared to the previous reporting period when this indicator amounted to 3.8 billion. The good results achieved in the first quarter have been accomplished due to a disciplined implementation of programs for increase of operational efficiency, the increase of the total turnover of crude oil and petroleum products, as well as due to the growing prices of crude oil in the global market.

In the first quarter 2017, NIS continued funding its strategic projects. In the first quarter of 2017, it invested a total of 4.7 billion RSD, predominantly into the exploration and production, as well as into the refining. By the same token, NIS Group’s liabilitiesin taxes and other public revenuesсу in the first quarter 2017 amounted 35.6 billion RSD – 8 per cent more than in the first three months 2016.

The total volume of oil and gas production amounted to 343 thousand equivalent tonnes, while in the first quarter 2017, as many as 765 thousand tonnes of oil and semi-finished products were refined. The total turnover has reached 714 thousand tonnes which is by 2 per cent more compared to the first three months of 2016 . The volume of sales in the retail market in Serbia increased by three per cent and amounted to 155 thousand tonnes, while Foreign assets turnover increased by 25 per cent compared to last year. Electricity production at NIS facilities reached 46,076 MWh, i.e. 15 per cent more than in the first quarter last year.

One of the most impressive achievements of the NIS Group in the first quarter 2017 is a streamlined industrial safety, so the indicator of injuries with lost days (indicator LTIF) declined by 13 per cent compared to the first three months of last year.

“The righteousness of the path on which NIS has embarked in the complicated economic circumstances has been once again validated by the results achieved in the first quarter 2017. A successful response to the challenges of the market was made possible due to the, first and foremost, the implementation of measures to increase of operational efficiency: whose effect on the EBITDA indicator in the first quarter is reckoned to be 1.1 billion RSD. Further streamlining of operational efficiency remains in our focus in 2017. The completion of this programme, as well as the completion of strategic investment projects will be a solid ground to pave the way of the entire development of NIS “ – pointed out the NIS CEO, Kirill Tyurdenev.