NIS j.s.c. Novi Sad (NIIS) Q1 2025 earnings summary

Executive summary

• Operations in Q1 2025 were impacted by US sanctions, with special licenses temporarily postponing full enforcement until June 27, 2025.

• Faced complex macroeconomic and business conditions, notably after being added to the U.S. SDN list in January 2025, but maintained operational and market stability.

• Net profit reached RSD 1.5 billion, down 16% year-over-year; EBITDA fell 15% to RSD 8.5 billion.

• Oil and gas production decreased by 4% year-over-year, while refining volumes rose 33%.

• Ownership structure changed: Gazprom Neft holds 44.85%, Gazprom 11.3%, Republic of Serbia 29.87%.

Financial highlights

• Sales revenues for Q1 2025 were RSD 72.3bn, down 16% year-over-year; EBITDA fell 15% to RSD 8.5bn.

• Net profit was RSD 1.5 billion, a 16% decrease from Q1 2024.

• Operating cash flow dropped to RSD -6.2bn from RSD 2.7bn in Q1 2024.

• CAPEX was RSD 5.5bn, a 47% decrease year-over-year.

• Bank indebtedness reduced by 3% to EUR 540.4 million.

Outlook and guidance

• Management remains focused on stable operations, market supply, and financial discipline amid ongoing sanctions.

• Ongoing commissioning of new solar plants and continued focus on operational efficiency measures.

• Efforts to be removed from the SDN list continue, with ongoing engagement with OFAC.

• The company is monitoring the impact of sanctions and exploring mitigation strategies.

• Emphasis on maintaining operational stability amid sanctions and challenging market conditions.