Feb. 11 (Bloomberg) -- Naftna Industrija Srbije AD, the Serbian oil and gas company controlled by OAO Gazprom Neft, said profit jumped 22 percent last year on higher output and lower costs.
Net income rose to 49.5 billion dinars ($593 million), while earnings before interest, taxes, depreciation and amortization climbed 27 percent to 66.5 billion dinars, Chief Executive Officer Kirill Kravchenko said today. NIS, as the company is known, increased output 11 percent to 1.69 million tons of oil equivalent and cut debt 10 percent to $403 million.
“The results show that 2012 was the most successful in NIS’s history,” Kravchenko said at a news conference today.
Serbia’s sole oil producer and refiner, based in Novi Sad, expanded its market share 5.3 percentage points to 73.9 percent in 2012 even as consumption fell 9 percent to 2.92 million tons, he said. NIS plans further expansion in Serbia and other Balkan countries of Bulgaria, Romania and Bosnia-Herzegovina.
Its shares climbed for a second day, rising 1.2 percent to 846 dinars and valuing the company at 138 billion dinars.
NIS, majority-owned by Gazprom Neft since 2009, plans to start paying a dividend this year, proposing to return to its shareholders 15 percent of profit, Kravchenko said.
Investment spending will increase 16 percent to 59 billion dinars this year, of which 40 percent is earmarked for exploration and production. The company also plans investments in its trading and oil processing businesses and expansion into power production.
“We plan to diversify as well as to boost our resource base” for oil and gas, Kravchenko said.
To contact the reporter on this story: Misha Savic in Belgrade at email@example.com
To contact the editor responsible for this story: James M. Gomez at firstname.lastname@example.org