CGES to pay dividend from retained earnings from previous years

Montenegrin transmission system operator (TSO) Crnogorski Elektroprenosni Sistem’s (CGES) shareholder assembly has backed a EUR 16.2 million dividend payment, the company said on its website.

On the last day of 2018, the company’s shareholder assembly adopted the decision to allocate a gross EUR 16.24 million in dividends.

This is a part of the company’s retained earnings from previous years, which amounted to EUR 28.7 million at the end of 2017, according to the press release. The dividend will be paid in cash. The net dividend per share is set at EUR 0.101.

The company will inform its shareholders in a timely manner about the date and method of dividend payment via the media and its website.

In the first 9 months of 2018, CGES had a profit of EUR 4.2 million, the company said. At the end of last year, CGES reported a EUR 4.7 million profit, and the year before EUR 2.4 million.

The largest shareholders of CGES are the state of Montenegro (55%), Italian TSO Terna (22%) and Serbian TSO Elektromreža Srbije (EMS) with 10%.

Repurchase of shares approved

The shareholder assembly also approved the repurchase of shares from shareholders who voted against the decision to pledge the CGES assets at the 6th Extraordinary General Meeting of Shareholders held on October 31, 2018. This decision refers to all shareholders that fulfill conditions for the repurchase of shares under the Law on Companies.

CGES has pledged assets worth EUR 21 million as collateral to the Ministry of Finance for the KfW loan. CGES and KfW have signed a EUR 20 million loan agreement for the Montenegrin Coast: Lustica Region Development.

The project includes the construction of a new Radovići substation, the upgrade of the Tivat substation, the installation of an underground cable between the Radovići substation and the existing Tivat-Budva power line, the construction of the Lastva-Kotor power line, as well as the reconstruction of the Tivat-Lastva power line.