In the shadow of resolving the fate of NIS, this company posted a significant drop in profits in 2024

In the shadow of expectations of the unraveling of the fate of the Oil Industry of Serbia (NIS) after the US administration imposed sanctions on this company, annual business results were published which were, as expected, much worse compared to the previous year, the brokerage house Momentum Securities stated in its analysis.

– In 2024, NIS recorded a drop in consolidated profit of 77 percent to 10.1 billion dinars due to the implementation of regular overhaul in the Refinery, losses in Petrohemija and the impact of “more expensive” oil reserves from the previous period. Excluding Petrohemija, the final result was 17.7 billion dinars – estimated the broker Nenad Gujanicic.

According to him, the unconsolidated net profit, which normally serves as the basis for the payment of dividends, amounted to 18.4 billion dinars, so this year’s dividend in the case of the distribution of a quarter of the profit would amount to 28.2 dinars per share.

According to the analysis published by Momentum Securities on its website, in 2024, NIS recorded a slight decrease in revenue of one percent, to 408.1 billion dinars, despite the decline in natural turnover and the price of Brent lower by two percent compared to the previous year. Profitability, on the other hand, as we have already stated, was significantly worse compared to 2023.

– The key indicator of profitability, EBITDA, decreased by 35 percent to 44.4 billion dinars, and without the effect of Petrohemija it amounted to 51.6 billion dinars. In the fourth quarter alone, consolidated EBITDA amounted to 2.0 billion dinars compared to 12.4 billion dinars in the previous year – says Momentum Securities.

NIS a.d. Novi Sad

HIP-Petrohemija a.d. Pančevo

Momentum Securities a.d. Novi Sad

Naftna industrija Srbije

Petrohemija

Momentum Securities

Nenad Gujaničić

NIS business results

profitability

NIS profit drop

analysis

NIS income

Refinery overhaul

US sanctions