Naftna Industrija Srbije

Naftna Industrija Srbije

Native name	Нафтна Индустрија Србије
Type	Joint-stock company
Traded as	BELEX: NIIS
Industry	Petroleum
Predecessor	Naftagas
Founded	Novi Sad, Serbia (1 October 2005 (2005-10-01)) First founded 1949
Headquarters	Novi Sad, Serbia
Key people	Vadim Yakovlev (Chairman) Kirill Kravchenko (CEO)[1]
Products	Petroleum Natural gas Petrochemicals
Services	Filling stations
Revenue	€2.307 billion (2013)[2]
Net income	€421.73 million (2013)[2]
Total assets	€3.014 billion (2013)[2]
Total equity	€1.474 billion (2013)[2]
Owner	Gazprom Neft (56.15%) Government of Serbia (29.87%) Others[3]
Number of employees	7,629 (2013)[2]
Parent	Gazprom Neft
Website	nis.eu

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.

History

NIS headquarters in Novi Sad

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).^[4]

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.^[4]

The privatization of NIS started in 2007. Several companies, including Gazprom Neft, MOL Group, OMV, Hellenic Petroleum and Rompetrol expressed interest in the company.^[5] 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.^[6] 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.^[7]

In January 2010, about 20% of remaining shares of NIS were distributed by the Serbian government to the Serbian citizens.^[8] In June 2010, NIS was transformed into an open joint-stock company, and is listed on the Belgrade Stock Exchange since 30 August 2010.^[9]

In October 2010, NIS began refurbishing its refinery in Pančevo, at a cost of US$26 million.^[10]

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%.^[11]

Operations

Refinery in Pančevo

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.^[12] 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.^[13][14][15]

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.^[16]

Sales and distribution

NIS Petrol filling station in Belgrade

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.^[17] 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.^[18]

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.^[19] In 2011, NIS purchased its first petrol stations in Bosnia and Herzegovina and Bulgaria.^[20]

In November 2012, NIS acquired 100% of OMV subsidiary operations in Bosnia and Herzegovina and its network of 28 filling stations.^[21]

In December 2012, NIS opened the first petrol station under the Gazprom brand in Serbia,^[22] and subsequently in Romania (the same month),^[23] and in Bulgaria (in July 2013).^[24]

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.^[2] As of 29 May 2015, NIS has a market capitalization of 956.20 million euros.^[25]

Corporate social responsibility

The company has defined five corporate programs:^[26]

• Energy of Sport - NIS has sponsored several sports teams in Serbia including: OK Vojvodina, KK Partizan, Serbia Davis Cup team, Children’s mini-basket league, clubs supported by NIS Unions where employees are involved, and others.
• Culture Without Borders, which supports cultural institutions, national and international festivals and projects of Russian-Serbian cooperation. NIS cooperates with the Belgrade Philharmonic Orchestra, FEST (Belgrade), Guča Trumpet Festival, Nisville Jazz festival, Sterijino Pozorje Festival, Zmaj Children's Games, and the Joy of Europe Festival.
• Science and Talent Development program, which supports the development of scientific potential research, scientific discoveries, development of talented pupils and students. NIS supports Petnica Science Center and cooperates with University of Belgrade and University of Novi Sad. Cooperation includes student scholarships, internships at the company, additional specialization of company employees, gaining new know-how, and realization of mutual scientific research projects.
• Charity projects, which includes help to the most disadvantaged categories of citizens, one-time assistance to the injured, assistance to small organizations and associations which have good ideas but lack of funding, fuel donations in charity programs, etc. Some charity projects NIS has supported include construction of the Safe House in Pančevo,^[27] support for renovation of Hilandar monastery and help in the form of 100 litres of drinking water Jazak to the city of Kraljevo (Serbia) after the devastating 2010 Serbia earthquake.
• Cooperation for Development, which is implemented in regions NIS does business in. Agreements are signed in the following cities: Novi Sad, Belgrade, Niš, and with municipalities and cities in Vojvodina: Pančevo, Kikinda, Zrenjanin, Kanjiža, Novi Bečej.

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).^[28]

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.^[29]

References

External links

Wikimedia Commons has media related to Naftna industrija Srbije.

• NIS official website
• NIS Petrol website
• Gazprom Petrol websites in the region
• NIS profile on the Foreign Investors Council website
• Interview with NIS General Director Kirill Kravchenko. 21 June 2011.