Net profit in Q1 amounts to 261 mn RSD, which considerably exceeds results of the same period of last year. (In Q1 2015, losses were equal to 4.7 bn RSD). These results are largely attributable to a large-scale Operational efficiency improvement program consistently implemented throughout the Company in all segments of its operations. For three months alone, the effect of implemented measures within Operational efficiency improvement program amounted to 1.3 bn RSD, which contributed to retaining Company's profitability. Even despite a macroeconomic situation of extreme gravity, NIS has carried on investing. Total volume of investment in Q1 reached 4.6 bn RSD, of which significant amount had been channeled to oil and gas E&P activity. Liabilities of NIS Group of companies have also grown on the basis of taxes and other payments to state budget. In Q, this figure was equal to 32.8 bn RSD, which is 11% higher than the same indicator last year. However, unfavourable macroeconomic conditions have had an impact on EBITDA indicator, which amounted to 3.8 bn RSD, 48% decrease versus the first 3M 2015. With regard to operational performance indicators, NIS has been able to increase total fuel sales volumes to 701 thousand tons, a 4% increase on Q1 2015. At the same time, share of Serbian retail market has been seen to grow by 2%. Foreign subsidiaries have achieved high results, with an increase of fuel sales by 36%. Total refining volume has increased by 13% against Q1 last year, and has reached 776 thousand tons. Oil and gas production equals 377 thousand tons of oil equivalent, thus exceeding the level planned for the reporting period. Kirill Kravchenko, CEO of NIS, has pointed out: "Regardless of less than favourable global trends and our poor expectation of the reporting period, it did not happen. Aside from keeping our Company profitable, we have also succeeded in improving the results in numerous segments of our operations. All of it became possible due to a consistent implementation of Operational efficiency improvement program, as well as our decision not to suspend investment activity. This is our way forward, since the crisis in the oil and gas sector is not over yet. Q1 has shown that 2016 is going to be a year of major challenges in all domains of our business".
