Serbia: GazpromNeft to invest 1.4 billion euros in NIS by 2025

, News Serbia Energy

CEO of Serbian oil company NIS Kirill Tyurdenev said that Russian GazpromNeft is planning to invest 1.4 billion euros in the Serbian company by 2025. GazpromNeft holds 56.15 % stake in NIS, 29.87 % is held by the Serbian state and the rest is owned by employees, Serbian citizens and other minority shareholders.

Tyurdenev explained that NIS‟ development strategy envisages investments in the amount of 2 billion euros in the period between 2017 and 2025. Some 600 million euros has been invested so far, which leaves 1.4 billion euros to invest in NIS by the end of said period. The majority of the funds will be invested in hydrocarbon exploration and production – 1.1 billion euros.

NIS recently distributed dividends for 2018 in the amount of 0.34 euros/share, totaling some 55.3 million euros or 25 % of last year‟s net profit. This is the seventh year in a row in which NIS has distributed dividends to its shareholders.

The financial results of NIS Group in the first half of 2019 were constrained by macroeconomic factors, negative exchange rates and higher depreciation. The average Brent crude oil price in the reporting period was about 66 dollars, which is 6 % less than the average price of the first half of last year. In the second quarter of 2019, net profit of NIS reached 26.3 million euros, which is 19 times the profit in the first quarter of this year. The total net profit for the first six months of 2019 is 27.2 million euros, while EBITDA amounts to 135 million euros. Tax liabilities and other payments to state budget of the NIS Group in the first half of 2019 amounted to almost 680 million euros.

Total production of oil and gas amounted to 641,000 tons of oil equivalent, which is the result above the planned. In Pancevo oil refinery, a total of 1.2 million tons of crude oil and semi-finished products was refined, while the total sales volume of petroleum products in the first half of the year amounted to 1.5 million tons.

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