NIS Publishes Consolidated Business Results for the First Half of 2015

July 29, 2015

Owing to the internal efficiency increase as well as to a consistent implementation of savings programs and policies relying on internal resources, the NIS Group recorded net income of RSD 5 billion at the end of the first half of 2015. EBITDA (earnings before interest, income taxes, depreciation and amortization) for the first six months of 2015 amounts to RSD 21 billion. The overall effect of measures for operational efficiency increase and basic costs reduction amounted to RSD 2.76 billion in the same period. Positive financial results for the first half of 2015 were achieved despite complex macroeconomic conditions (exchange rate losses and crude oil price decline on the world market). The total turnover of petroleum products rose by 3% compared to the same period last year and amounted to 1462.9 thousand tons. The foreign assets turnover grew by 22%, while the share in the Serbian retail market grew by 2%. Oil and gas production amounted to 795 thousand tons of oil equivalent, which is by 1% more than budgeted under the business plan. Moreover, the volume of direct and indirect taxes of the NIS group amounts to RSD 67.24 billion, which is by 6% more than in the first half of 2014. NIS continued with investments and in the first six months of 2015, it invested RSD 12.5 billion, mostly in the exploration and production operations. Based on the results in the first six months of 2015, the total debt to banks amounts to USD 571 million, which is by 19% lower compared to the same period last year. “The financial indicators of the Company have been improved compared to the first quarter of this year. We managed to overcome the negative trends and to record positive results, owing to the efforts we have invested in order to increase operational efficiency. However, I would like to point out that the greatest support was provided by our employees, who have contributed to successful and stable operations of the Company on a daily basis. We will try and continue to maintain the NIS profitability and business competitiveness”, said Kirill Kravchenko, Deputy CEO of “Gazprom Neft” and NIS CEO.