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NIS Group profitability improves in first half of 2026 amid US sanctions risk

NIS Group returned to profitability in the first half of 2026, with results supported by stronger crude prices, favourable inventory effects and cost controls. The company reported net profit of approximately €83.5mn, while earnings before interest, tax, depreciation and amortisation reached around €300mn. Average Brent crude prices rose to $92.60 a barrel, compared with $71.70 in the same period of 2025.

Higher crude prices supported the upstream business and increased the value of production. Lower-cost inventories provided an additional accounting benefit, according to the company. That advantage is expected to reverse gradually as more expensive replacement stocks move through the refining and sales system.

Financial performance and commodity price impact

The group’s earnings improvement was accompanied by continued exposure to market conditions and operational constraints linked to US sanctions. Capital expenditure amounted to approximately €101mn, reflecting funding for essential and strategic projects despite sanctions-related uncertainty. Management said maintaining investment is important for refinery reliability, environmental compliance, retail operations and domestic supply security.

In the six-month period, NIS produced 554,400 tonnes of oil equivalent. Refineries processed 1.6mn tonnes of crude and intermediate products during the same timeframe. Petroleum-product sales reached 1.4mn tonnes.

Refining output and Serbia supply continuity

The company pointed to the Pančevo refinery and its distribution network as central to Serbia’s fuel market operations. It said domestic supply was maintained without interruption throughout the period . The company cited Serbia’s limited ability to replace refining and logistics capacity quickly.

The improvement in earnings does not remove ownership risk for the group. NIS remains subject to US sanctions due to Russian control and relies on temporary licences to maintain access to suppliers, banks, insurers and other international counterparties . Discussions involving Hungary’s MOL and the Russian-held stake could lead to a new ownership structure.

Spending controls, inventories and next-quarter outlook

Management intends to retain tight spending controls and continue efficiency measures. It also warned that higher-cost inventories may weaken the next quarter’s result . While first-half profit provides a stronger financial cushion, sanctions, ownership negotiations and supply-chain continuity are described as key variables affecting operating conditions more quickly than refinery margin movements alone.

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