April 29 (SeeNews) - Serbian oil and gas group NIS [BEL:NIIS] said its net profit plunged 85% on the year to 1.8 billion dinars ($18 million/17 million euro) in the first quarter of 2024, due to the closure of its Pancevo refinery for scheduled renovations.
NIS' financial results are in line with expectations, reflecting the decrease in refining volumes and increased costs compared to the prior-year period, the company said in a statement filed with the Belgrade bourse on Friday.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 50% on the year to 10 billion dinars in January-March, according to the statement.
"The [Pancevo] refinery turnaround, which started at the end of February and continued throughout March, had an expected impact on the company's operational and financial results," NIS said, noting that its oil refining and semi-finished products volume totalled 640,800 tonnes, while the sales volume stood at 748,700 tonnes in the first three months of the current year. It did not provide comparative figures for 2023.
At the same time, the company said its oil and gas exploration and production segment recorded positive results with production volume of 289,500 tonnes of oil equivalent, which is higher compared to the first three months of 2023.
In the first quarter of 2024, NIS invested 10.5 billion euro in development projects, up 62% on the year.
In February, NIS said it will complete the Pancevo refinery overhaul in the second half of April.
NIS shares traded down 1.62% at 850 dinars by 10:00 CET on Monday after closing 0.92% lower on Friday.
As of end-2023, Russia's Gazprom controlled 56.15% of NIS, followed by the Serbian government with some 30%, while the remainder belonged to a number of minority shareholders.
NIS is one of the largest vertically integrated oil and gas companies in Southeast Europe. Its main activities include the exploration, production and processing of oil and gas, as well as the production and retail of a wide range of petroleum products.
(1 euro = 117.126 dinars)
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