In the period after lifting of the state of emergency in Serbia, the focus of NIS remains safe business, the health of our employees and consumers, as well as maintaining a stable supply of the market. Due to the drop in oil prices and the drastic reduction in demand for petroleum products caused by restrictive measures to prevent the spread of COVID-19, the global oil industry is operating in extremely unfavorable circumstances, said Serbian oil company NIS. NIS is a part of the global market and these negative trends, as expected, have reflected on the company and its financial results.
External circumstances affected the financial results of NIS in the first quarter to be lower compared to the same period last year, and the results in the second quarter are expected to be strongly influenced by the consequences of the pandemic as well, primarily low oil prices and falling demand. As in such circumstances it is impossible to forecast accurately further market developments, NIS has developed several crisis scenarios, as well as short-term and long-term plans. The goal is for the company to be agile and ready to adapt to new circumstances.
In this regard, the priorities of NIS will be to maintain the company’s liquidity, as well as to continue investing and working on projects that will bring the most benefits in the coming period. To this end, the following measures have been implemented:
-Reduction of operational and administrative costs
-Prioritization of investments with a resolute continuation of the implementation of key development investments
-Operational efficiency increase in all business segments
CEO of NIS Kirill Tyurdenev said that the company has implemented decisive operational and financial measures to meet the challenges posed by the new circumstances. Following the lifting of the state of emergency NIS is moving forward and continues to work on key investment projects that will guarantee further development and the stable future of the company. Therefore, the company will focus on the bottom of the barrel project in Pancevo oil refinery and the construction of combined heat and power (CHP) plant in Pancevo.
