NIS’ 2025 Integrated Corporate Strategy

NIS’ Integrated Corporate Strategy for the period of up to 2025 laid foundations for further development in challenging microeconomic conditions with the aim of increasing the value both for shareholders and employees and community in which it operates.

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Strategic objectives:

  • Maintaining oil and gas production indicators and increasing hydrocarbon reserves
  • Increasing refining depth and efficiency in the Pančevo Oil Refinery
  • Formatting and modernizing the retail network
  • Further expansion of operations through investments in electricity generation
  • Maintaining a leadership position in efficiency in the region with full operational performance optimisation

Financial Indicators:

  • The adoption of a new development strategy will enable NIS to remain a top employer in the upcoming period, who significantly contributes to the budget of Serbia through tax and dividend payments
  • An average 4 % increase in EBITDA is planned in the period up to 2025
  • The new Strategy defines an extensive investment program of 2.2 billion dollars, which will enable NIS to keep its top position on the list of the largest domestic investors

Business Activities:

When defining the strategic development directions, NIS took into account the real circumstances in which the Exploration and Production Block has been operating for a longer period of time. Therefore, the newly developed Strategy provides for the implementation of a number of activities aimed at developing the resource base and implementing the drilling program and geological and technical measures in the field of exploration and production. The focus is on profitable investment projects in Serbia and in the region, which have the maximum effect on overall business.

Services will continue to support the production of oil and gas in Serbia and concessions and will be involved in the maintenance of refinery plants. Furthermore, the maintenance of equipment and technological transport equipment will be continued with the maximum deployment of staff and technical capacities, complying with the technical and economic feasibility and with continuous investments, modernization and staff strengthening.

The strategic objectives of the Refining Block, among others, are improvement of energy efficiency and continuous increase in refining efficiency. The modernisation of refinery plants or increase of refining depth of Pančevo Oil Refinery will continue to be the key project for NIS in the forthcoming period. The implementation of this project worth more than EUR 300 million will allow additional diversification of the product range to products with higher yields and will provide market supply with high-quality fuels, which will contribute to the energy stability of Serbia. The commercial operation of the bottom-of-the-barrel plants with the delayed coking technology will begin in the third quarter of 2019.

The Sales and Distribution Block will continue to invest in modernisation, development and improvement of retail network efficiency as well as in increasing the market share in the region. The loyalty programs and unique sales offer will enable NIS Petrol and GAZPROM fuelling station to expand their offer for customers. In the coming period, NIS will also focus on the development of business lines for specialized products – aviation fuel, lubricants and bunker fuel by increasing the level of specialized logistics and improving the quality of products and related services.

In the energy segment, NIS will strive to further diversify its business through investments in electricity generation. The key projects of the Energy Block will be the construction of the thermal power plant (TE-TO) Pančevo, further increase in electricity generation from cogeneration and development of the wind power generation projects. The focus is on improving the energy efficiency system, which implies the rational use of available resources.

About Strategy:

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Vadim Yakovlev

Chairman of the Board of Directors of NIS, First Deputy Chief Executive Officer of Gazprom Neft

“Today, NIS is the largest and most efficient company in Serbia, one of the key energy players in the Balkan region. I am sure that the long-term strategy of NIS, which defines business development vectors in Serbia and beyond its borders, will ensure that the company’s competitive ability in the Eastern European markets is strengthening in the future, and the implementation of strategic projects of the company will allow an increase in profitability of operations for shareholders.”

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Kirill Tyuerdenev

CEO of NIS

“We are convinced that the Strategy we have adopted in agreement with major shareholders will drive the successful development of NIS with the aim of achieving a long-term vision in the coming years – that NIS becomes the leading energy company in the region of Southeast Europe. Also, this Strategy is a confirmation that we have taken the right path, proof that we stay focused on our strategic priorities that will ensure the continuation of successful business, being determined to respect the needs of our customers and the new market reality”.

In this section:

  •  

    NIS in numbers

    Parameters proving our success

  •  

    Organization

    Business structure of NIS

  •  

    Management

    Meet our management team members

  •  

    Mission, Vision and Values

    Fundamental principles which support our progress

  •  

    Code of Conduct

    The document which sets the ethical principles of NIS

  •  

    Our history

    Find out how it all started

  •  

    NIS Museum

    We preserve our rich past and tradition

  •  

    Awards

  •  

    Decisions and Regulations