The amount of NIS Group’s direct and indirect tax liabilities was by 14 percent higher than a year ago, and/or RSD 29.5 billion. The total effect of the measures aimed at increasing operational efficiency and reducing the basic costs in the first quarter amounted to RSD 800 million. NIS investments in the first three months of 2015 amounted to slightly more than seven billion RSD, where most investments were made in exploration and production of oil and gas, modernization of refining capacities, as well as in the development of the retail network. In the refining business segment, the agreement was entered into with the company CB&I for the development of basic and expanded basic design for Deep Refining, and the work-over of the Bitumen Facility in Pančevo Oil Refinery was completed in January. Record sales of Euro diesel were scored in the bunkering segment in the Sales and Distribution. In the Energy Block, the activities related to the establishment of the design company for the implementation of Pančevo TETO project were continued, while a small energy plant was started up in the oil-gas field Velebit. In the segment of oil and gas exploration and production, the works on the Amine facility in Elemir were completed during the first quarter. However, EBITDA amounts to RSD 7.2 billion in the first quarter of 2015 as a result of unfavorable macroeconomic trends, which is by 53 percent less than in the same period last year, while net loss amounts to RSD 4.7 billion, taking into account the abovementioned factor of foreign exchange rate losses, as well as a strong impact of using the expensive stocks of oil purchased at higher prices. Commenting on NIS operating results in the first quarter of 2015, NIS CEO, Mr Kirill Kravchenko said: “The last year’s crisis was reflected in our business operations in the first months of 2015 and these results were expected. Our main task is to increase operational efficiency and implement the program of cost saving in all business segments. But no matter what, we will continue to invest primarily in increasing oil and gas reserves and we will be a safe supplier of our customers. Despite a difficult situation, the volume of investments in social responsibility projects will continue to be the NIS’ priority, because we care about our employees and about the community where we conduct our business.”
