Janaf: Profit in Investments, Not in Dividends

The Supervisory Board and Management of Janaf, led by Dragan Kovačević, proposed to the General Assembly that this year shareholders be left without dividends. If the General Assembly accepts their proposal, the state, which through CERP and the Ministry of State Property holds more than 78 percent of the shares in Janaf, will be the first to miss out on the expected substantial income.

>>>Janaf Exceeded Planned Profit by 41.7 Percent

Janaf ended last year with nearly 291 million kuna in profit, which is at the same level as the profit achieved in 2016, for which Janaf paid its shareholders more than 166 million kuna in dividends. According to the decision of the Management and the Supervisory Board, 14.5 million kuna from last year’s profit was allocated to legal reserves, while 138 million kuna was distributed to other reserves from profit. For the remaining 138 million kuna, it is proposed to the General Assembly that they be allocated to retained earnings of the company, instead of being paid out to shareholders.

>>>Dragan Kovačević: We Must Develop Projects That Will Ensure New Revenues

This proposal is justified by the fact that the total value of contracted but unperformed works at the end of 2017 amounted to 352.2 million kuna. Furthermore, the value of investments that were ongoing at the end of last year, for which additional financial resources need to be secured for completion and commissioning, amounts to 646 million kuna.

>>>Janaf Signed Cooperation with NIS and MOL

As a result, there is a need to secure its own financial resources for investments in long-term tangible assets, and the Management and Supervisory Board believe that Janaf should not pay dividends this year but rather allocate that 138 million kuna to retained earnings.