In the 9M of 2020, NIS recorded a decrease in sales of 32.7% YoY, a decrease in EBITDA of 66.8% and a net loss of RSD 8.8bn.

Naftna Industrija Srbije (NIS) published their 9M 2020 report on the Belgrade Stock Exchange. According to the report, sales of petroleum products, oil and gas amounted to RSD 126.18bn, representing a decrease of 32.7%. The company’s results were quite affected as the average price of the oil of Brent type in the first nine 9m was USD 40.8 per barrel, representing a decrease of 37% YoY. Of the total sales, domestic market accounts for RSD 100.2bn, while RSD 35bn relates to the export and international sales. When breaking down sales by segment, sale of petroleum products (wholesale activities) amounted to RSD 80.33bn (-34.8% YoY). Meanwhile, of that RSD 11.57bn could be attributed to a single domestic customer HIP Petrohemija.

NIS noted that in the first nine months, 0.952m of conditional tons of oil and gas was produced, remaining flat YoY. The volume of refining in Pančevo Oil Refinery increased by 14% and it amounts to 2.6m tons of crude oil and semi-finished products. Total trade with petroleum products stood at 2.5m tons, which is lower by 3% YoY.

When looking at operating expenses, they amounted to RSD 142.29bn, representing a decrease of 21.2%. Of that, purchases of oil, gas and petroleum products represents by far the largest expense of RSD 86.33bn (-30.3%). Meanwhile production and manufacturing expenses decreased by 8.6% to RSD 17.1bn, which came mostly on the back of lower repair and maintenance service costs.

As a result of the above-mentioned EBITDA reached RSD 10.35bn compared to RSD 31.16bn in the same period of the previous year. Of that, Upstream segment’s effect was RSD 12.65bn, while Downstream negatively affected EBITDA with RSD -2.3bn. Going further down the P&L, the company reported an operating loss in the first nine months of RSD 6.96bn (compared to RSD 15.44bn in 9M 2019). At the same time, NIS noted a net loss of RSD 8.8bn.