Dalekovod Group reports a loss of 350 million kuna

Dalekovod Group achieved total revenues of 1.225 billion kuna last year, representing a growth of 7.9 percent compared to the same period in 2011. At the same time, Dalekovod d.d. recorded sales revenues of 887.8 million kuna, a decline of 15 percent.

The loss before interest, taxes, and depreciation (EBITDA) amounts to 222.8 million kuna, while the net loss exceeded 350 million kuna, compared to a loss of 278.3 million kuna in the same period the previous year. Dalekovod d.d. recorded a net loss of 383.1 million kuna.
In the Management’s explanation, it is stated that the negative result is primarily due to the impairment of assets and the write-down of receivables that Dalekovod conducted as of September 30, 2012, as well as the postponement of the execution of existing Group contracts.

The current assets of Dalekovod Group decreased from 1.25 billion to 737 million kuna, primarily due to a reduction in receivables from 919 to 504 million kuna.

On December 20, a pre-bankruptcy settlement procedure was initiated for the company, leading to asset write-downs and a negative effect of one-time write-offs on the net result amounting to 329.6 million kuna.

– Dalekovod reduced its indebtedness by 67 million kuna through regular servicing of loan principal and due to a blockade by banks in the fourth quarter – states the Management report, adding that Dalekovod and the new Management’s focus is on successfully concluding the pre-bankruptcy settlement process and continuing the implementation of operational and financial restructuring measures. It is also noted that Dalekovod has contracted projects worth 1.6 billion kuna this year.

As a reminder, in July, the Supervisory Board dismissed the previous Management members Luka Miličić and Damir Skansi and appointed new members: Matjaž Gorjup, Marko Jurković, Krešimir Anušić, and Željko Lekšić. In December, Goran Brajdić joined the Management, responsible for financial operations.