Bosnia and Herzegovina: No dividend distribution at Krajinapetrol

, SEE Energy News

The statement from Krajinapetrol, Bosnian fuel trader said that due to a huge drop in turnover caused by the coronavirus pandemic, the Board of Directors decided not to distribute dividend from its profit in 2019.

Together with retained earnings from previous years, Krajinapetrol has a total of 1.2 million euros in its retained earnings account.

Although the beginning of 2020 was satisfactory in terms of turnover, since mid-March there has been a huge drop in turnover, which is currently only about 50 % compared to the same period last year. The difference in price per unit of sales has also been significantly reduced. The reasons are both in the limited margins by the RS Government, and low prices offered by the competition.

Krajinapetrol recorded a net profit in the amount of 660,000 euros in 2019, compared to a profit of some 380,000 euros recorded in 2018. The company’s operating income increased by 10.2 % to 27.6 million euros in 2019, while its operating expenses rose by 8.3 % to 26.6 million euros. Total assets amounted to 12.7 million euros at the end of December, compared to 11.4 million euros at the end of 2018. In late 2019, Bosnian oil products wholesaler NES has launched a takeover bid for the 67.75 % stake it does not already own in Krajinapetrol. NES was offering to purchase 13,876,371 ordinary shares of Krajinapetrol at a price of 0.4 euros per share. In November, NES acquired 32.24 % of the shares of local fuel trader Krajinapetrol, thus triggering an obligation to launch a takeover bid for the company. Last month, NES said that it has increased its stake in local fuel trader Krajinapetrol from 32.245 % to 32.27 %. Previously, RS Government said that it is prepared to sell its stake in fuel trader Krajinapetrol to Croatian oil company INA. INA is still considering whether to launch a bid for the buyout of Krajinapetrol’s shares. RS Government has 52 % of Krajinapetrol’s shares.