Montenegro: TSO company profit decrease due to the KAP electricity consumption problems

8. July 2013. / SEE Energy News

Dividend won’t be paid off to shareholders from Montenegrin Electricity Transmission System (CGES), but last year’s net profit of 6,5 million EUR will remain unclassified because of complex financial condition this year- it was determined on recent meeting of shareholders. CGES is partially owned by Italian Terna company.

Decision for profit classification for last year was adopted on last shareholders meeting, representatives of small share holders were against this decision.

Share holder Zoran Petranovic believes that the company has sent bad signal to share holders with postponing the dividend payoff.

“This decision is not good because we have all calculating that we will make some profit. We shall make a strategy for dividend payoff in future period so shareholders can learn to treat our investment”, Petranovic said.

Executive Director CGES, Ljubo Knezevic, stated that company is in very complex situation at the moment, but not completely by its fault but because of the fact that energy sector is in front of the biggest challenge in the last few decades.

“Aluminum Combine Podgorica (KAP) is very big consumer and complex problem which hits the whole Montenegrin economy, not only energy”, Knezevic estimated.

Petranovic as representative of minority shareholder group was specially interested in bad business of CGES in the first quarter of the year because three times worse result was achieved, only with the reference to the last year.

“Incomes in the first quarter are for around 2 million EUR lower. However, Elektroprivreda (EPCG) had significantly higher income of electricity sale in the same period. Why is the result so bad?” Petranovic asked.

According to his words, CGES is in situation where it needs to protect its own interest.

“If someone consumes electricity illegally for six months, it would be probably easier to solve, not to wait on request from Brussels. The company will protect its interest hard in the case of an announced KAP’s bankruptcy”, Petranovic claims.

Knezevic from CGES explained that the first quarter is dominantly characterized by very profitable hydrology what enabled production of much electricity delivery to KAP.

“On the other side, amount of transit energy over CGES is decreased exactly because of big amount of electricity produced in the country”, Knezevic said.

Shareholders have adopted business report from CGES for the last year unanimously, as well as financial statements with auditory report.

According to Knezevic’s words, last year was good because company succeed to amortize negative trend of electricity consumption for needs of domestic consumptions.

Source; CGES/Serbia Energy See desk

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