Power utility Elektroprivreda Crne Gore’s (EPCG) shareholder assembly has backed a EUR 55.3 million dividend payment. The dividend will be distributed out of retained earnings, in the gross amount per share of EUR 0.4214.
At the 16th regular meeting held in Nikšić, shareholders also adopted financial and consolidated reports for 2017 and the company’s annual report, and a decision on covering losses. At the same time, the shareholder assembly adopted a decision on the appointment of the auditor, a decision on the purchase of shares, and a decision on the dismissal and appointment of members of the Board of Directors.
EPCG produced 2,190 GWh of electricity in 2017, down 26% from the planned level due to drought, the company said. At the same time, consumption was at a record annual high of 2,270 GWh, up 6.36% from the plan.
During 2017, accounts receivable from distribution customers were lowered, while the collection level was 2.5% higher than the total invoiced sale in 2017. CAPEX was at EUR 5.83 million, most of which in power generation.
Đoko Krivokapić, Ranko Milović, Ljubo Knežević, Samir Hodžić, Vladan Radulović, Oreste Bramanti, and Massimo Tiberga were approved as members of the Board of Directors.
Concerns over EUR 205 million payment impact on operations
The shareholder assembly’s decision to back the repurchase of more than 13 million shares from Italy’s A2A at EUR 3.96 per share has sparked controversy.
According to Igor Noveljić, executive director at EPCG, the decision will not jeopardize EPCG’s operations, national broadcaster RTCG reported. Noveljić said that the transaction will not leave EPCG without cash.
EPCG will still have significant funds in its accounts, while repurchased shares can be sold on the stock exchange or to a new partner within a year of the transaction, which would bring cash back to the company, Noveljić was quoted as saying.
Minority shareholders, however, believe that the transaction will cause harm to EPCG’s business.
The decisions adopted by the assembly will cause a EUR 205 million outflow, minority shareholder Dejan Mijović said, RTCG reported. It is not a matter of whether there will be some cash left, but whether EPCG can be the leader of the energy sector development, he said, adding that EPCG will have to take out loans for regular overhauls.
A month ago, EPCG announced that it had a net profit of EUR 42.8 million in the first half of 2018 and that EPCG Group’s net profit stood at EUR 1.5 million last year.