CGES has announced plans to distribute a dividend of €10 million to its shareholders, sourced from a total profit of €35.7 million earned in the previous year, as reported by “Vijesti” from this predominantly state-owned company.
This decision is set to be discussed at the upcoming Shareholders’ Assembly scheduled for June 28, proposed by CGES’s Board of Directors in accordance with its authorities defined by the Law on Companies and CGES Statute.
The Montenegrin state holds the largest share in CGES with 55.3%, followed by Italy’s Terna with 22%, Elektromreže Srbije (EMS) with 15%, and smaller shareholders collectively owning less than eight percent of the shares.
The net profit translates to approximately five cents per share. Under this proposal, the state budget would receive around €4.7 million as capital income, Terna approximately €1.9 million, EMS about €1.3 million, and other small shareholders around €680,000.
In its budget proposal for this year, the government anticipates capital income contributing about €54.5 million to the state treasury. Previously, Elektroprivreda and Budvanska rivijera opted not to distribute dividends, focusing instead on directing earned profits towards planned investments.
“According to CGES’s business plan and budget for the 2024-2028 period, strategic documents approved by the Board of Directors in December 2023, the dividend payout for 2024 is projected at €10 million gross. This amount is calculated based on actual and projected business performance, factoring in anticipated adjustments to regulator-approved revenue by the Regulatory Agency for Energy and Communal Services in the upcoming period. The proposed dividend figure also considers planned capital investments and CGES’s financial position, ensuring adherence to fundamental principles of business stability and sustainability,” stated CGES to “Vijesti” regarding the methodology and amount of the proposed dividend.
CGES reported a net profit of €35,717,703 in its 2023 annual financial report.
“The profit distribution entails €10 million to be disbursed to shareholders as a gross dividend, with €25,717,703 allocated as undistributed profit to accumulate with undistributed profits from previous years,” noted the company.
Undistributed profits from earlier years total €54.3 million, resulting in a cumulative amount of €80 million after the Shareholders’ Assembly adopts this decision.
“The proposed dividend distribution decision follows a meticulous analysis within the Company, taking into account the adopted Business and Investment Plan for the 2024-2028 period. It aims to uphold business stability while addressing shareholder expectations. The CGES Business Plan outlines significant investments to bolster the transmission system’s readiness for renewable energy sources. With total planned investments of €198 million over the next five years and considering CGES’s financial standing and upcoming operational challenges, the accumulated undistributed profit will support CGES in sustaining successful operations,” concluded CGES.
