NIS j.s.c. Novi Sad (NIIS) Q2 2025 earnings summary

Executive summary

• Faced complex business conditions in H1 2025 due to US SDN sanctions and lower oil prices, but maintained operational and market stability, with employee support.

• Filed for delisting from SDN list; sanctions implementation postponed multiple times with government support and OFAC licenses.

• Recorded a net loss of RSD 3.6bn and EBITDA of RSD 10.2bn for H1 2025; CAPEX was RSD 12.4bn.

• Oil and gas production fell 3% YoY; refining volumes up 20% due to absence of major overhaul; sales volumes down 8%.

• Maintained positive cash flow and reduced total bank indebtedness by 11% YoY to EUR 516m.

Financial highlights

• Sales revenues for H1 2025 were RSD 145.8bn, down 27% YoY; Q2 revenues fell 34% compared to Q2 2024.

• EBITDA for H1 2025 was RSD 10.2bn, a 55% decrease YoY; Q2 EBITDA dropped 87% to RSD 1.7bn.

• Net result for H1 2025 was a loss of RSD 3.6bn, compared to a profit of RSD 5.3bn in H1 2024.

• Operating cash flow for H1 2025 was RSD 1.7bn, down 83% YoY.

• CAPEX for H1 2025 was RSD 12.4bn, a 49% decrease from the prior year.

Outlook and guidance

• Management is working with OFAC for delisting and has secured further postponement of sanctions until August 27, 2025.

• Ongoing efforts to mitigate sanctions' impact and maintain operational stability and energy security.

• Ongoing assessment of sanctions' impact; future effects on operations and financials remain uncertain.

• Focus on supply chain adaptation and energy transition projects.