Montenegrin rail operator ZPCG turns to loss in Jan-March

Net sales revenue rose to 617,400 euro in the three months through March, from 557,600 euro in the like period of last year, while other operating revenue increased to 1.73 million euro from 1.68 million euro in the period under review, ZPCG said in statement filed with the Montenegro Stock Exchange last week.

Operating costs also increased, to 1.19 million euro in the first three months of the current year from 1.04 million euro in the first quarter of 2023, with expenditures for workers' wages and benefits going up to 1.36 million euro from 1.11 million euro, the statement read.

The company thus turned to an operating loss of 219,000 euro in January-March 2024, from an operating profit of 75,850 euro a year earlier. It also saw its financial loss widen to 87,000 euro from 75,000 euro in the period under review.

ZPCG's shares last traded on the Montenegrin bourse on April 26, closing down 4.76% at 0.38 euro. The state controls a direct stake of 90.8% in the company.

Last year, ZPCG saw its net profit plunging to 395,000 euro from 912,000 euro in 2022.

In February, the government mandated the transport ministry to take all necessary measures to facilitate the merger of state-controlled rolling stock maintenance firm Odrzavanje Zeljeznickih Voznih Sredstava (OZVS) and ZPCG, aiming to save the former from bankruptcy. The government decided to allocate up to 1.7 million euro of current budget reserves to raise the capital of the two companies and pay for the costs associated with the planned merger.

($ = 0.935 euro)