Gazprom-Backed NIS Weighs Exit from Bulgaria and Romania After Financial Losses

Serbian oil and gas company NIS, controlled by Russia’s Gazprom, is considering exiting its operations in Bulgaria and Romania due to ongoing difficulties in both markets, SeeNews reports. The company revealed in its fourth-quarter 2024 financial report that it is reviewing the possibility of leaving these countries, including the potential sale or closure of its assets. NIS is evaluating options to address the challenges faced in Bulgaria, where its downstream operations are struggling, and in Romania, where both upstream and downstream activities are impacted.

In Bulgaria, NIS operates 23 gas stations under the Gazprom brand, holding a 2.3% share of the total motor fuels market and 2.2% of the retail market in 2024. In Romania, NIS runs 19 gas stations and is involved in oil and gas exploration. The company’s market share in Romania was significantly lower, with 0.4% of the total motor fuels market and 0.6% in retail in 2024.

The company is actively exploring ways to improve operational efficiency and identify new business opportunities. NIS is currently conducting a comprehensive review to determine the most suitable course of action in line with its long-term strategic goals and the interests of its shareholders. The results of these assessments are expected to be included in future reports.

Alongside the potential exit from Bulgaria and Romania, NIS reported a significant financial decline in 2024, with its net profit falling by 77% to 10.1 billion dinars (88.6 million dollars) from 44.2 billion dinars the previous year. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also dropped by 35%, while its investments rose by 36% to 53.2 billion dinars. Additionally, the company continues to evaluate the impact of recent U.S. sanctions, which were imposed as part of broader measures against the Russian energy sector. The sanctions target NIS due to its ownership by Gazprom Neft, a subsidiary of the Russian oil giant Gazprom.

Gazprom Neft holds a 50% stake in NIS, while Gazprom owns 6.15%. The Serbian government owns around 30%, with the remainder held by minority shareholders.

Sources:

• SeeNews
• OFFNews