Type Joint-stock company Industry Petroleum Founded 10 February 1949 Revenue 2.31 billion EUR (2013) Parent organizations Gazprom Neft, Gazprom | Traded as BELEX: NIIS Predecessor Naftagas Headquarters Novi Sad, Serbia Net income 421.7 million EUR (2013) | |
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Native name Нафтна Индустрија Србије Key people Vadim Yakovlev (Chairman)
Kirill Kravchenko (CEO) CEO Kirill Kravchenko (Feb 2009–) Subsidiaries Naftagas-Naftni Servisi Doo Novi Sad Profiles | ||
Naftna Industrija Srbije (abbr. NIS; English: Petroleum Industry of Serbia) is a Serbian multinational oil and gas company with headquarters in Novi Sad, Serbia. The company's main business is the production of petroleum and natural gas exploration, production, importing, processing, transportation, and marketing of oil and oil products in Serbia.
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History
The predecessor of NIS was the Company for Crude Oil Exploration and Production, incorporated in 1949. The company was renamed to Naftagas in 1953 which later incorporated oil refineries in Pančevo and Novi Sad, as well as the Azotara fertilizer plant. By the end of 1973 Naftagas integrated the retail company Jugopetrol (transformed into Naftagas promet).
NIS, in its present form, was established in 1991 as a public company for the exploration, production, refining and trade in crude oil, petroleum products and natural gas integrating the following companies: Naftagas, Gas, Energogas, Pančevo Oil Refinery, Belgrade Oil Refinery and Kruševac Lubricant Factory (FAM). This company gave rise to three other companies: NIS, Srbijagas, and Transnafta. In October 2005, NIS was transformed into a joint-stock company.
The privatization of NIS started in 2007. Several companies, including Gazprom Neft, MOL Group, OMV, Hellenic Petroleum and Rompetrol expressed interest in the company. However, on 25 January 2008 Serbia and Russia signed an agreement giving 51% of NIS's shares to Gazprom Neft for €400 million and €550 million in investments until 2012. Adjoining contracts signed with Gazprom were about inclusion of Serbia in the South Stream gas-pipeline project and the construction of an underground gas storage facility in Banatski Dvor. On 24 December 2008, final contract between the Government of Serbia and Gazprom were signed.
In January 2010, about 20% of remaining shares of NIS were distributed by the Serbian government to the Serbian citizens. In June 2010, NIS was transformed into an open joint-stock company, and is listed on the Belgrade Stock Exchange since 30 August 2010.
In October 2010, NIS began refurbishing its refinery in Pančevo, at a cost of US$26 million.
NIS held a monopoly on all oil imports in Serbia until 2011. In March 2011, Gazprom Neft announced that it will purchase an additional 5.15% of shares of NIS, increasing their original share from 51% to 56%.
Exploration and production
NIS is the only company in Serbia which deals with exploration and production of crude oil and gas, as well as with production of geothermal energy. The company disposes with all necessary equipment for the performance of a whole range of complex activities such as geophysical exploration, control of production of crude oil, gas and geothermal energy. The majority of NIS oil fields are located on the territory of Serbia, in the province of Vojvodina, but upstream has business operations both in Serbia and abroad. In 2011 NIS started to expand business in south-east Europe: in Bosnia and Herzegovina, Romania and Hungary.
Refining
The company owns and operates oil refineries in Pančevo (annual capacity 4.8 million tons of crude oil) and Novi Sad (annual capacity 2.6 million tons of crude oil), and natural gas refinery in Elemir. NIS refining complex produces a whole range of petroleum products - from motor gasoline and diesel fuel to mechanical lube oils and feedstock for the petrochemical industry, heavy fuel oil, road and industrial bitumen, etc.
The current investment program, implemented by the company at the moment, includes expansion of production capacity and technical and technological modernization of production plants in Pančevo, with the goal of producing higher quality products. NIS also offers services of crude refining to third parties.
Sales and distribution
NIS owns the largest network of filling stations in Serbia - 334 filling stations, 10 loading terminals, 18 LPG bottle shops, 44 warehouses, aviation fuel pumping facility at Belgrade Nikola Tesla Airport and a network of depots across Serbia. Retail network for LPG retail includes all the regional sales centers in major cities in the country.
In 2010 NIS started a program of modernization of the retail network. First re-branded gas station "Zmaj 2" with the brand NIS Petrol on the highway in Belgrade was opened 13 January 2012.
As part of its business plan for Eastern Europe, NIS plans to expand its operations and establish 100 fillings stations in Bulgaria, Romania and Bosnia and Herzegovina. In 2011, NIS purchased its first petrol stations in Bosnia and Herzegovina and Bulgaria.
In November 2012, NIS acquired 100% of OMV subsidiary operations in Bosnia and Herzegovina and its network of 28 filling stations.
In December 2012, NIS opened the first petrol station under the Gazprom brand in Serbia, and subsequently in Romania (the same month), and in Bulgaria (in July 2013).
Market and financial data
As of 2013, NIS posted a profit of approximately 48 billion RSD (€422 million) and 264 billion RSD (€2.31 billion) of revenues. It has 7,629 employees. As of 29 May 2015, NIS has a market capitalization of 956.20 million euros.
Corporate social responsibility
The company has defined five corporate programs:
NIS published its first sustainability report for 2010. NIS was the first company in Serbia to publish this report in accordance with the world standards Global Reporting Initiative (GRI-G3) and AA1000 APS (2008).
Controversies
In 2012, NIS was accused by the Naftagas Union of mismanaging employees by forcing furloughs on some employees and keeping others as employees while not allowing them to work.