NIS j.s.c. Novi Sad (NIIS) Q2 2024 earnings summary

Executive summary

• Achieved stable oil derivative supply in Serbia despite complex macroeconomic conditions and a major refinery overhaul.

• Completed capital overhaul of Pančevo Oil Refinery, positioning it among the most advanced in the region.

• Capital investments reached RSD 24.4bn in H1 2024, double the prior year, focusing on modernization and energy transition projects.

• Maintained significant market share in Serbia and expanded solar energy projects and green initiatives.

• Shareholders approved a dividend payout of RSD 10.48bn for 2023.

Financial highlights

• Sales revenues for H1 2024 rose 6% year-over-year to RSD 198.4bn; Q2 2024 up 23% to RSD 112bn.

• EBITDA for H1 2024 fell 20% year-over-year to RSD 22.8bn; Q2 2024 up 49% to RSD 12.8bn.

• Net profit for H1 2024 dropped 61% year-over-year to RSD 5.3bn; Q2 2024 up 75% to RSD 3.6bn.

• Operating cash flow for H1 2024 improved to RSD 9.8bn from negative RSD 4.8bn in H1 2023.

• CAPEX for H1 2024 more than doubled year-over-year to RSD 24.4bn.

Outlook and guidance

• Ongoing commissioning and expansion of solar and renewable energy projects, with new installations planned for 2025.

• Continued focus on energy efficiency, equipment reliability, and market supply stability.

• Ongoing integration and modernization of HIP-Petrohemija, with further investments planned.