НИС публикует результаты деятельности за первый квартал 2019 года

Focus on strategic projects – more than RSD 8 billion invested

NIS Group has published a report on its consolidated Q1 2019 performance, drafted pursuant to
International Standards of financial Reporting.

Q1 2019 has seen NIS continuing the completion of strategic projects, which will represent the
cornerstone of the company’s further development. A total of RSD 8.3 billion have been invested,
6 per cent more than in the first three months of 2018. The greatest portion of investment has
been dedicated to the exploration and production of crude oil and gas, while the priority in
individual projects has been the continuation of investment in the “Bottom-of-the-Barrel” plant in
the Pančevo Refinery, making it one of East Europe’s ultimate technology refineries. Other than
that, actions have been undertaken towards the completion of another two capital construction
projects. March has seen the commencement of the construction of a combined heat and power
plant (CCPP) in the town of Pančevo, in the Refinery compound, being carried out by NIS in
association with “Gazprom Energo Holding”. Furthermore, NIS continued its involvement in the
Plandište Wind Farm project in association with the МЕТ Group.

Indicator EBITDA (Earnings before Interest, Taxation, Depreciation & Amortisation) amounted to
RSD 6.3 billion, while the net profit totalled RSD 158 million. NIS Group’s Q1 accomplished
financial performance has been affected by the plunging average prices of crude oil compared to
the first trimester of 2018, turnaround in the Pančevo Refinery and higher amortisation. NIS
Group paid RSD 40 billion to the state coffers.

In terms of operative indicators, 321 thousand tons of crude oil and gas equivalent have been
produced in Q1 2019, with the total scope of refining the crude oil and semi-finished products
amounted to 599 thousand tons. Along these lines, 726 thousand tons petroleum products have
been sold. NIS Group also focused on streamlining occupational safety indicators, so the number
of lost time Injuries per million exposure hours Indicator (LTIF indicator) was reduced by 38 per
cent compared to previous year’s Q1.

Kirill Tyurdenev, CEO of NIS said: “Capital projects and further development of NIS remain our priorities in 2019. We also attach a special importance to the revamp of the Refinery in the town of Pančevo and the works in the construction of the “Bottom-of-the-Barrel” plant. Furthermore, in association with our partners we continue activities in the construction of a combined heat and power plant in the town of Pančevo and completion of the Plandište Wind Farm project. Other than that, in the rest of the year NIS will focus on boosting operative efficiency and streamlining financial and operative performance
within the entire group“.