Serbia: Gazprom NIS oil company operations positive in Romania

, News Serbia Energy

Serbian company NIS in Q1 2016 increased the revenue from the sale of oil products in Romania by 40 percent compared to the same period last year, due to the cheaper fuel on domestic market, which led to consumption increase.

VAT reduction by 4 percent in Romania as of January 01 2016 led to new fuel price drop, which led to the higher consumption, records NIS report for Q1 2016.

According to this document, the revenue of the company from the sale of oil products in Q1 was increased by 38.8 percent, from 1.03 to 1.43 billion dinars, i.e. from 8.4 to 11.7 million euros.

NIS owns 18 gas stations in Romania under brand Gazprom and the market share of 1.1 percent in retail and 0.7 percent in wholesale.

NIS is the owner of refinery in Pančevo, and its capacity has been increased after significant investments into modernization.

NIS owns three concession for oil exploration in the West Romania – the blocks Periam, Billed and Baile Felix. Serbian company is the owner of 85 percent of rights for the three blocks, while the remaining 15 percent is owned by the Canadian oil company East West Petroleum.

USD 44.28 million was invested by NIS since 2011 into the exploration of these blocks.

Operations in Romania are managed by the local branch NIS Petrol SRL. Serbian company listed on Belgrade exchange, is controlled by Gazprom Neft with the share of 56.15 percent. Serbia is the owner of 29.87 percent of shares, while the rest is owned by the small shareholders.

On the group level, NIS completed Q1 with net revenue of USD 2.4 million, after it recorded the loss of USD 43 million in the same period last year. Tax return, increase of the amount of refined products along with the cost reduction, mitigated the effects of oil price drop, states the company, transmits