Serbia’s NIS, majority-owned by Russian GazpromNeft, experienced a sharp 77% decline in net profit for 2024, which amounted to €86.2 million, compared to the previous year. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a 35% decrease, falling to €380 million in 2024 from €582 million in 2023. Despite strong results in the fourth quarter, NIS’ overall performance for the year is expected to be lower than in 2023, primarily due to the turnaround of the Pancevo oil refinery, negative financial effects from HIP Petrohemija, and less favorable market conditions.
The company highlighted a 36% increase in investments, totaling €455 million in 2024. Notably, NIS undertook a €95 million overhaul of the Pancevo refinery between February and April 2024, which it described as the most extensive and complex in the refinery’s history. The company’s total oil and gas production for the year reached 1.147 billion tons of oil equivalent, a 1% decline from 2023. Petroleum product sales also dropped by 5%, reaching 4.75 million tons.
NIS also confirmed that it is assessing the impact of US sanctions on its operations. On 10 January 2024, the US Treasury imposed sanctions on NIS as part of a broader crackdown on Russia’s energy sector, due to its ownership ties to GazpromNeft. GazpromNeft controls 50% of NIS, while its parent company Gazprom holds a 6.15% stake. The Serbian government owns about 30%, with the remaining shares held by minority investors. In response to the sanctions, the Belgrade Stock Exchange suspended trading of NIS shares on 14 January, anticipating significant effects on the company’s stock price and market activity.
