Director of Montenegro Energy Company Flavio Bianco on 2012 business environment and results: Increase in electricity prices is a leap forward5. December 2012. / SEE Energy News
“In Montenegro, improvements are needed in terms of speed in supporting the necessary changes that come from foreign markets and standards,” said Bjanko when commenting on business conditions.
Electric Power Industry (EPIM) increased its revenues from January to October by about 18 million, while net losses decreased for 22.5 million compared to the same period last year, according to chief financial director of the company Flavio Biancho.
He said for the company newsletter that EPIM in 2012 invested 26.3 million Euros, which is 80 percent of the investment plan.
“The positive trend is expected in the last quarter of the year too” Biancho said, adding that EPIM, due to recent changes in the structure of trade, is now capable to improve the collection of debts, which leads to increasing profitability and net financial position.
If the profitability of the company is kept at the planned level and EPIM manages to address “some commercial and political constraints that affect the current net financial position, there is no reason not to confirm what had been originally planned for next year in terms of investment” .
Financial balance and success in business will be discussed at the meeting of EPIM management headed by Italian company A2A and the Government of Montenegro in December. A2A took upon itself the obligation to improve their business, increase revenue, reduce technical and financial losses and increase investment by 2015. Depending on these results, the future status of the A2A in the management and ownership structure of EPIM will be defined. Biancho said that the increase in electricity prices, which was approved by the Regulatory Agency for Energy (RAE) in the middle of the year, is a step forward.
“This step forward, as part of a general three-year plan that was defined and approved by the RAE, definitely helped the company to recover a significant portion of reduced tariffs during the past year,” said Biancho, who was recently appointed Chief Financial Director by the Board of Directors of EPIM. EPIM, he said, has reduced the impact on the net financial position and managed to slightly recover the profitability necessary for investment.
Speaking about the conditions of doing business in Montenegro, Biancho said that improvements are needed in terms of speed in supporting the necessary changes that come from foreign markets and standards.
“It can also refer to EPIM. I am sure that with the coming changes, with the support and cooperation with foreign investors and partners, this country and EPIM could play an important role in the European economy” said Biancho.
Source Serbia Energy Magazine
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