Montenegrin rail operator ZPCG's 2023 net profit drops 57%

Net revenue rose to 3.72 million euro in 2023, from 3.08 million euro in 2022, while other operating revenue increased to 7.65 million euro from 7.28 million euro in the period under review, ZPCG said in statement filed with the Montenegro Stock Exchange on Tuesday.

Operating costs also increased, to 4.9 million euro last year from 4.5 million euro in 2023, with expenditure for workers' wages and benefits going up to 4.83 million euro from 4.02 million euro, the statement read.

The company's operating profit declined to 1.26 million euro in 2023 from 1.69 million euro a year earlier.

ZPCG's shares last traded on the Montenegrin bourse on March 21, 2023 closing flat at 0.399 euro. The company is 90.8%-owned by the state.

In February, the Montenegrin government said it 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 added it will 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.

($ = 0.920 euro)