Shareholders of the Adriatic Pipeline (Janaf) are expected to decide at the regular general assembly on August 29 to allocate the remaining profit for 2017 amounting to 138.1 million kuna to retained earnings.
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In the invitation for the assembly published via the Zagreb Stock Exchange, it is reminded that the Management, with the consent of the Supervisory Board, made a decision on March 29 of this year regarding the distribution of profit for the 2017 business year, whereby, after the amount entered into legal reserves was deducted, half of the profit or the amount of 138.1 million kuna was allocated to other reserves from profit, and the assembly is proposed to allocate half, which is also the amount of 138.1 million kuna, to retained earnings.
In fact, Janaf’s net profit last year amounted to 290.7 million kuna, and according to the decision from the end of March, 14.5 million kuna was allocated to legal reserves.
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Janaf justified the proposal to allocate half of the profit (after the deduction for legal reserves) to other reserves from profit and half to retained earnings by the need to secure its own cash resources for investments in long-term tangible assets. It states that the total value of contracted but unexecuted works at the end of 2017 amounted to 352.2 million kuna, and the value of investments on that date, for which additional cash resources need to be secured for completion and commissioning, amounts to 646 million kuna.
