NIS losses in 2008: EUR 90mn

According to the findings of independent accountants, NIS’s losses in 2008 totaled some EUR 90mn, not EUR 41mn as first thought.

Izvor: B92

Saturday, 30.05.2009.

10:05

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According to the findings of independent accountants, NIS’s losses in 2008 totaled some EUR 90mn, not EUR 41mn as first thought. Following a meeting of the Serbian Oil Industry (NIS) board of directors on Thursday evening, it was stated that majority owner Gazprom had agreed to one more revision of the final report. NIS losses in 2008: EUR 90mn A second firm of accountants will be selected at the next board meeting, at the Serbian government’s recommendation and in line with legal procedure. In a written statement to the media, NIS Managing Director Kyril Kravchencko said that the KPMG consulting house had completed its check of the 2008 annual report. “According to the findings of the independent accountants, the company ended the 2008 business year with a loss of EUR 90mn. The losses are higher than stated in the preliminary annual report submitted to the National Bank of Serbia on March 2, when they came to EUR 41mn. The reason for the increased amount is that the company had to take into account the accountant’s ‘negative’ comments,” explained Kravchenko. He added that KPMG had been chosen for the job at the board’s decision in November 2008, that it had been the Serbian side’s choice, and that the new owner had been happy with the decision as KPMG was among the “top four” accounting firms worldwide. The statement pointed out that Gazpromneft usually worked with PriceWaterhouseCoopers, another member of the big four, which also had a branch office in Serbia. “Objective reasons for such high losses are that the company sustained major losses in the fourth quarter owing to the fall in the price of oil derivates and the devaluation of the dinar. Subjective reasons are breaches of international accounting standards and errors in calculation that were made last year,” Kravchenko said. Once the accountant’s report is adopted by the board, it will then go before the shareholder’s assembly, before being submitted to the National Bank no later than September 30. The first report on NIS’s operations in 2008 conducted by the previous management team revealed a profit of EUR 24mn.

NIS losses in 2008: EUR 90mn

A second firm of accountants will be selected at the next board meeting, at the Serbian government’s recommendation and in line with legal procedure.

In a written statement to the media, NIS Managing Director Kyril Kravchencko said that the KPMG consulting house had completed its check of the 2008 annual report.

“According to the findings of the independent accountants, the company ended the 2008 business year with a loss of EUR 90mn. The losses are higher than stated in the preliminary annual report submitted to the National Bank of Serbia on March 2, when they came to EUR 41mn. The reason for the increased amount is that the company had to take into account the accountant’s ‘negative’ comments,” explained Kravchenko.

He added that KPMG had been chosen for the job at the board’s decision in November 2008, that it had been the Serbian side’s choice, and that the new owner had been happy with the decision as KPMG was among the “top four” accounting firms worldwide.

The statement pointed out that Gazpromneft usually worked with PriceWaterhouseCoopers, another member of the big four, which also had a branch office in Serbia.

“Objective reasons for such high losses are that the company sustained major losses in the fourth quarter owing to the fall in the price of oil derivates and the devaluation of the dinar. Subjective reasons are breaches of international accounting standards and errors in calculation that were made last year,” Kravchenko said.

Once the accountant’s report is adopted by the board, it will then go before the shareholder’s assembly, before being submitted to the National Bank no later than September 30.

The first report on NIS’s operations in 2008 conducted by the previous management team revealed a profit of EUR 24mn.

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