Money losers sink deeper into red paced by Sr­bi­ja­gas

Top 100 See - - Top 100 Companies -

by Djordje Daskalovich

On the money losers side, the gen­eral down­trend in the fi­nan­cial per­for­mance of the top 100 com­pa­nies in South­east Europe (SEE) is even more ev­i­dent than in the other rank­ings. The com­bined loss of the ten big­gest loss-mak­ers among the en­trants in SEE TOP 100 widened to 1.8 bil­lion euro from 1.3 bil­lion euro they posted a year ear­lier. In com­par­i­son, the top ten en­trants in last year's edi­tion of the rank­ing posted a com­bied loss of 1.6 bil­lion euro. As en­ergy com­pa­nies con­tinue to dom­i­nate the rank­ing, the neg­a­tive re­sult can largely be at­trib­uted to the sharp fall in oil prices on the global mar­kets, which added to the other fac­tors curb­ing the per­for­mance of the com­pa­nies in the re­gion.

Ser­bian state-owned gas mo­nop­oly, Sr­bi­ja­gas, re­mains the big­gest loss-maker for the third year in a row, even though it man­aged to cut its net loss to 373.5 mil­lion euro from 434.9 mil­lion euro a year ear­lier. The com­pany's re­struc­tur­ing is one of the most im­por­tant is­sues on the agenda of the Ser­bian govern­ment, as it should pro­vide the ba­sis for rec­ti­fy­ing a breach of the En­ergy Com­mu­nity law while also cre­at­ing con­di­tions for Ser­bia to start ac­ces­sion talks with the EU on en­ergy pol­icy. The Ser­bian en­ergy min­is­ter has said that a fi­nan­cial ad­viser for Sr­bi­ja­gas will be picked by the end of the third quar­ter of 2015.

Ro­ma­nia may have the big­gest pres­ence in the most prof­itable com­pa­nies rank­ing, but it also dom­i­nates the not so glam­orous money losers rank­ing with four en­tries. Most of the Ro­ma­nian money losers again come from the en­ergy industry, leav­ing only one spot for the metal industry. Slove­nia and Bulgaria were tied for the sec­ond spot with two en­tries each. Bos­nia and Herze­gov­ina had one rep­re­sen­ta­tive. Bul­gar­ian state-owned elec­tric­ity

util- ity Nat­sion­alna Elek­trich­eska Kom­pa­nia (NEK) jumped to the sec­ond spot this year from no. 10 in the pre­vi­ous edi­tion, af­ter its net loss more than dou­bled to 299.9 mil­lion euro from 111.4 mil­lion euro a year ear­lier. NEK's cat­a­strophic per­for­mance last year was largely the re­sult of its obli­ga­tion un­der long-term con­tracts with US com­pa­nies AES and Con­tourGlobal to buy at a fixed price elec­tric­ity gen­er­ated by their ther­mal power plants in the coun­try. An­other fac­tor that im­pacted its per­for­mance was that it was not cal­cu­lat­ing into the price for end-sup­pli­ers the full amount of costs it had sus­tained due to its obli­ga­tion re­gard­ing the pur­chase of power gen­er­ated from re­new­able sources.

Oil re­fin­ery Lukoil Neftochim Bur­gas, an­other Bul­gar­ian com­pany, took the third place af­ter its net loss widened to 272.1 mil­lion euro from 123.3 mil­lion euro a year ear­lier.

Two Ro­ma­nian com­pa­nies com­ing from the pe­tro­leum and gas sec­tor - Rom­petrol Ra­finare and Com­plexul En­er­getic Ol­te­nia, were ranked at no. 4 and no. 5, re­spec­tively af­ter their per­for­mance de­te­ri­o­rated sharply last year. Rom­petrol Ra­finare saw its net loss widen to 239.8 mil­lion euro from 50 mil­lion euro while Com­plexul En­er­getic Ol­te­nia's turned to a net loss of 154.8 mil­lion euro in 2014 from a net profit of 1 mil­lion euro a year ear­lier. Through its two re­finer­ies, Rom­petrol Ra­finare ac­counts for over 40% of Ro­ma­nia's re­fin­ing ca­pac­ity and is the only pro­ducer of poly­mers in the coun­try. In 2015, the Ro­ma­nian govern­ment an­nounced lay­off plans for the state-con­trolled en­ergy hold­ing com­pany Com­plexul En­er­getic Ol­te­nia and re­struc­tur­ing mea­sures aimed at boost­ing its ef­fi­ciency.

The last en­trant in the top money losers rank­ing – Slove­nian car parts maker CIMOS, recorded a net loss of 49.8 mil­lion euro.

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