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NewsMontenegro, Barska plovidba company returned part of the debt to the state

Montenegro, Barska plovidba company returned part of the debt to the state

From last year’s record profit, Barska plovidba only paid off the installment for the ships of 3.6 million and returned part of the debt to the state of 3 million for mismatched state aid received during 2021.

Barska plovidba ended last business year with an EBITDA (operating result before deducting interest, profit tax and depreciation) in the amount of EUR 7.9 million, which is an increase of almost ten times compared to the same comparative period in 2021 ., and the realized profit from operations in the amount of EUR 6.3 million. The company’s account currently has over one million EUR of liquid assets”, the company’s management announced.

In 2013, Barska plovidba took a loan from Exim Bank of USD 46.4 million for the purchase of two ships in China, for which the state issued a guarantee, with a grace period of five years. Since the beginning of repayment in 2018, most of the installments for this loan have been paid from the state coffers, because the company was doing poorly, reports Vijesti.

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The Agency for the Prevention of Corruption determined in October last year that this state aid was illegal and that the company should return EUR 9.2 million to the budget.

“Aware of the fact that the result achieved in the previous year is largely a consequence of record high freight rates on the market, we are taking further steps in order to optimize and diversify our business with the aim of achieving positive business results in the current year, which is characterized by 40-50 percent lower freight rates than the previous year result and thereby increase the capital of Barska plovidba to the satisfaction of all its shareholders”, said the company.

With the aim of diversifying their business, they started the implementation of an investment project – the construction of 32 residential units for the market, which will be obtained through the reconstruction and repurposing of the old administration building of Barska plovidba.

“With the realization of this project, the company expects to generate around four million EUR of new income, during this and the next year, which will create the preconditions for the purchase of the ferry and the renewal of the Bar-Bari line”, the company stated.

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