BOARD OF DIRECTORS HAS ESTABLISHED THE DRAFT CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR OF 2017

During today’s session, the Board of directors of Elektroprivreda Crne Gore AD Nikšić, presided by Mr Đoko Krivokapić, has established Draft Decisions on the Company’s business operations and consolidated financial statements as at December 31, 2017 inclusive.   

In 2017, EPCG Group (EPCG, CEDIS, ZETA Energy and EPCG Belgrade) operated in an economic environment full of challenges while the reduced generation, conditioned by bad hydrology characteristics, made impacts to the business results. Regardless the full operational readiness, bad hydrometeorology conditions in the last year caused poor viability of water capacities of the reservoirs thus directly causing lower generation and financial results of the last year.  

Business revenues in 2017 amounted to 234.35 M€, and are by 0.85% higher compared to the previous year. EBITDA (Earnings before interest, taxes, depreciation, and amortization) of 23 M€ in 2017 is 65.07% less compared to 2016, while EBIT (Earnings before interests and taxes) in the amount of -15.75 M€ is 243.42 % less compared to the same period of 2016.

Total electricity generated in 2017 amounted to 2,190 GWh (26% less compared to 2016) whereof 925 GWh was generated in HPPs (47% less compared to 2016) and 1,265 GWh was generated by TPP Pljevlja (4% more compared to 2016). Electricity import for internal use amounted to 1,182 GWh, i.e. 57% more compared to 2016. Total 2017 electricity consumption was by 9% higher compared to the same period last year and amounted to 3,152 GWh.

Earmarked capital in 2017 amounted to 27.67 M€ but significant efforts have still been put in optimizing the availability of plants, modernization and reconstruction of the structures, reduction of losses in distribution network and costs as well as in increase in total efficiency, aimed at improving the security of customers’ supply as well as stability and sustainability of the State’s power system.

The Board has established Draft Decisions covering losses of the previous year as well as Decisions on distribution of accumulated gain and payment of dividends. Board members defined Draft Decisions on purchase of own shares and selection of the Auditor as well as the Decision convening the ordinary Shareholders’ Meeting for August 20th, 2018 when the proposed Decisions will be adopted and the new Board of directors’ composition voted.