XIII regular general shareholders' meeting held

Shareholders' Meeting of Elektroprivreda Crne Gore AD Nikšić has adopted the Business Report for 2014 of Elektroprivreda Crne Gore AD Nikšić as well as the Consolidated Financial Statements with the Audit Report

PricewaterhouseCoopers has issued an unqualified opinion about the Financial Report

The new Board of Directors has been elected

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The 13th ordinary general shareholders' meeting of EPCG AD Nikšić has taken place today in Nikšić. Based on the Agenda defined in advance, the following decisions have been passed during the meeting chaired by Stefano Pastori, the Company' CEO: the Decision on adoption of consolidated financial statements for 2014, the Decision on adoption of the Company's Business Report, the Decision on covering accumulated losses and reduction of the initial capital to cover accumulated losses and make payment to shareholders. The Shareholders' Meeting has adopted the Decision on selection of the auditor and modifications to the Company's Statute as well as the Decision on appointment and dismissal of members of the Company's Board of Directors.

The Shareholders' Meeting has unanimously approved the proposal made by the Board of Directors about the manner of covering accumulated losses of cca €235.5 mil. The Company's initial capital has been accordingly reduced, including payments made to shareholders, proportionally to their share in the capital. Cca €61.5 million has been thus appropriated to cover portion of accumulated losses and cca €35 million for payments to shareholders. According to the opinion provided by the Institute of Certified Public Accountants in its capacity of the state authority competent for accounting and auditing, the remaining portion of losses shall be covered from revaluation reserves and another from share premium.

The fundamental principles of the Business Policy have been accomplished thanks to the engagement of the Company's management and effective cost management. The Energy Balance was implemented and all customers have been properly supplied. The profit of €34.767.009 represents the final result of the annual financial activities in 2014, what is by €9.611.054 better than the results achieved in 2013.

The past year has brought about quite poor hydrological circumstances as compared to those of 2013. The actual electricity generation in 2014 totalled to 3,038.1 GWh, which is by 159.9 GWh (5%) less than planned, consequently 771.1 GWh (20.2%) less than what has been achieved over the course of the previous year. The actual electricity consumption in 2014 has trumped that of the previous year by 16.6 GWh. What has also been obtained is high level of safety in functioning of Montenegro’s energy system as well as substantially high level of plants’ reliability and operability.

The distribution network losses came to 16.83% in 2014, thus being by 49.1 GWh lower than those observed in 2013. The 2014 collection plan has been fully honoured with cca €5.6 million worth of increase in collection as compared to the previous year. This means that the collection rate has grown by 5.2% on the average.

The implementation of capital investments in 2014 was at somewhat lower scale than that of the preceding year because the AMM Project – “Smart Meters” has been accelerated in 2013 when a larger portion of the project was actually completed. Nonetheless, the Company has stressed that positive results are to be expected in the forthcoming period due to previously initiated activities and optimisations, which is a way for EPCG to confront the upcoming new challenges.

According to the Company Law, the mandate of members of the Board of Directors expires with the first regular annual meeting of the General Shareholders’ Assembly. Consequently, following the release from duty of the present and voting for the new members, a new Board of Directors has been elected whereof two members, representatives of the strategic partner A2A, have changed.