Feb 4, 2025
Serbia's NIS is considering withdrawing from Bulgaria and Romania.
Serbia's oil and gas company NIS, which is controlled by Russia's Gazprom, announced that it is contemplating a withdrawal from Bulgaria and Romania due to operational difficulties in these markets.
"Management is [...] evaluating the possibility of exiting these markets if the challenges continue or intensify, which includes assessing the potential full or partial sale of assets, closure, or other exit strategies," NIS stated in its financial report for the fourth quarter of 2024.
NIS is facing challenges with its downstream operations in Bulgaria, and in Romania, both upstream and downstream operations are impacted, the company reported. In addition to the potential exit, NIS is also looking for ways to improve operational efficiency and explore new business opportunities to address the challenges in the local markets.
"A thorough review is currently underway to ensure that any decisions made will align with the Group's long-term strategic objectives and the interests of shareholders," NIS mentioned, adding that the findings from these assessments will be included in its forthcoming regular reports.
In Bulgaria, NIS operates 23 petrol stations under the Gazprom brand. In 2024, its market share in Bulgaria's total motor fuel sector was 2.3%, with a retail market share of 2.2%.
In Romania, NIS has 19 petrol stations under the Gazprom name and is also engaged in oil and gas exploration and production. In 2024, its market share in the overall motor fuel market in Romania was 0.4%, with a retail market share of 0.6%.
NIS further reported on Friday that its net profit plummeted by 77% to 10.1 billion dinars ($88.6 million/ 86.4 million euros) in 2024, down from 44.2 billion dinars the previous year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 35% last year to 44.4 billion dinars, while investments increased by 36% to 53.2 billion dinars in 2024.
The company also mentioned that it is continuously evaluating the impact of the recent US sanctions on its operations, indicating that the effects are challenging to forecast. On January 10, the US Treasury imposed sanctions on NIS as part of broader measures aimed at Russia's energy sector, citing the company's control by the Russian oil giant Gazprom Neft.
Gazprom Neft holds a 50% share in NIS, while its parent company Gazprom possesses a 6.15% stake. The Serbian government owns roughly 30% of NIS, and the rest is held by minority shareholders.
"Management is [...] evaluating the possibility of exiting these markets if the challenges continue or intensify, which includes assessing the potential full or partial sale of assets, closure, or other exit strategies," NIS stated in its financial report for the fourth quarter of 2024.
NIS is facing challenges with its downstream operations in Bulgaria, and in Romania, both upstream and downstream operations are impacted, the company reported. In addition to the potential exit, NIS is also looking for ways to improve operational efficiency and explore new business opportunities to address the challenges in the local markets.
"A thorough review is currently underway to ensure that any decisions made will align with the Group's long-term strategic objectives and the interests of shareholders," NIS mentioned, adding that the findings from these assessments will be included in its forthcoming regular reports.
In Bulgaria, NIS operates 23 petrol stations under the Gazprom brand. In 2024, its market share in Bulgaria's total motor fuel sector was 2.3%, with a retail market share of 2.2%.
In Romania, NIS has 19 petrol stations under the Gazprom name and is also engaged in oil and gas exploration and production. In 2024, its market share in the overall motor fuel market in Romania was 0.4%, with a retail market share of 0.6%.
NIS further reported on Friday that its net profit plummeted by 77% to 10.1 billion dinars ($88.6 million/ 86.4 million euros) in 2024, down from 44.2 billion dinars the previous year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 35% last year to 44.4 billion dinars, while investments increased by 36% to 53.2 billion dinars in 2024.
The company also mentioned that it is continuously evaluating the impact of the recent US sanctions on its operations, indicating that the effects are challenging to forecast. On January 10, the US Treasury imposed sanctions on NIS as part of broader measures aimed at Russia's energy sector, citing the company's control by the Russian oil giant Gazprom Neft.
Gazprom Neft holds a 50% share in NIS, while its parent company Gazprom possesses a 6.15% stake. The Serbian government owns roughly 30% of NIS, and the rest is held by minority shareholders.