Hidroelektra niskogradnja: We Were Unable to Utilize Our Capacities

The construction company Hidroelektra niskogradnja recorded a loss of 24.2 million kuna last year, while in 2011 it had a slight profit of 359 thousand kuna.

The company explains that it was unable to fully utilize its capacities last year, and the reason for this is the reduction in investment in traffic infrastructure in Croatia.

Hidroelektra had total revenues of 492.6 million kuna last year, a decrease of 23.4 percent, while expenses were reduced by 19.6 percent to 516.8 million kuna.

The company did not fully manage to utilize its production capacities last year, the Management emphasizes in the report explanation.

The reason for this, they state, lies in the reduction of investment in traffic infrastructure projects in Croatia, the slowdown in the execution of works under already concluded construction contracts (AC 12 and 13, AC Zagreb-Sisak and AC Doli-Dubrovnik), and the termination of the construction contract (Pelješac Bridge).

The Management also emphasizes that the company suffered additional damage due to the economic issues of certain business partners from business associations, which further complicated the construction and collection of works on certain projects.

All of this is reflected in the extension of collection deadlines for receivables, worsened liquidity, and difficult financing. The direct consequences of the difficult business conditions are visible through the difficulties in meeting obligations to suppliers and contractors, as well as the high amount of the recorded loss, explains the Management.

Hidroelektra niskogradnja collected significantly reduced amounts of receivables on various projects last year, which were under negotiation or had long court proceedings. The amounts of these expected receivables were presented in the realization from previous years, but in 2012 they had to be written off due to the impossibility of their collection, the Management’s report notes.