Due to delays in the production process, Uljanik Group recorded a loss of 687 million kuna in 2017

Uljanik Group recorded a loss of 687 million kuna in 2017, primarily due to delays in the production process, the company reported on Wednesday.

According to preliminary data, sales revenues in 2017 were 111 million kuna higher compared to 2016, amounting to 2.04 billion kuna, as stated in the unaudited consolidated financial report of the company. It is noted that Uljanik Group delivered four ships last year and employed 4,504 employees.

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The parent company Uljanik d.d. also recorded a negative financial result of 253 million kuna, although they note that sales revenues were higher compared to 2016 by 511 million kuna.

“The company incurred a loss primarily due to the realization of its own contribution from the Restructuring Program of 3. MAJ Shipyard d.d.,” it is stated.

So far, Uljanik Group has received two letters of intent from potential strategic partners, Kermas Energija of Danko Končar and the Neapolitan Palumbo Group, to participate in the restructuring and diversification process of Uljanik Shipyard.

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In mid-last month, shareholders of the Pula shipyard decided at an extraordinary general assembly on recapitalization, i.e., an increase in the share capital from 180 to a maximum of 302.22 million kuna.

The government approved a state guarantee for Uljanik Group for a loan of 96 million euros, conditional on Uljanik d.d. and Uljanik Shipyard d.d. carrying out an increase in share capital, with the entry of a strategic partner into Uljanik d.d. and preparing and initiating the restructuring process based on the restructuring plan of Uljanik Shipyard d.d. in cooperation with the strategic partner.