The state-owned freight railway company "Montekargo" recorded a loss of 1,58 million euros last year, which is one million more than the year before. The accumulated loss amounts to 9,96 million euros, while its liabilities have grown to 10,5 million euros. As a result, the company has significant uncertainty about servicing its liabilities from current operations.
This was stated in the company's audit report, which was published on the Montenegro Stock Exchange website.
The auditor also warns that the state has given this company guarantees for a loan of three million euros, and that "Montekargo" has several other loans from domestic commercial banks for which it has pledged its wagons and business receivables. If the company's poor performance continues, there is a risk that the amount of three million will be charged to the budget, as well as that the banks will seize the company's wagons.
"According to the above, there are significant uncertainties regarding the Company's ability to service its business obligations and financing obligations from current operations, which jeopardizes business continuity. Given that the largest part of the obligations, around 50 percent, relates to related parties and obligations on various grounds to the state of Montenegro, and that the state, as the majority shareholder, has provided a guarantee covering 80 percent of the investment loan of the Montenegrin Commercial Bank, which initially amounts to 3.000.000 euros," stated the auditor "Eurorew".
He states that the company responded that they do not expect business continuity to be in question, and that "if the business environment improves and economic activity increases in the surrounding area in the coming period, this will additionally reflect on the Company's business results."
However, the report on the business for the first three months of this year shows that the business is not improving, but rather deteriorating, with revenues falling from 2,1 to 1,7 million. The loss for this quarter amounted to 191 thousand euros, while last year for the same period there was a profit of 74 thousand euros.
Last year, Montekargo had sales revenues of 6,2 million euros, while the year before they amounted to 7,4 million. Other operating income was worth 907 thousand, or half a million more. Operating expenses, excluding salary costs, were at the same level of 4,3 million. Although revenue decreased, the amount for gross earnings increased by 200 thousand euros, from 3,9 million in 2023 to last year's 4,1 million. Net earnings increased by 250 thousand euros.
The total operating loss at the end of 2024 amounted to 1,58 million euros, while the result was 160 percent worse than in 2023, when a minus of 602 thousand euros was achieved.
In terms of long-term liabilities, it is stated that there is a debt of 2,18 million euros for an investment loan from the Montenegrin Commercial Bank, which was approved on April 11, 4, and as one of the means of security, a pledge on the company's wagons in favor of the bank in the amount of 2024 euros was registered.
There is also an overdraft loan with Crnogorska komercijalna banka in the amount of 243.520 euros, where a pledge in favor of the bank in the amount of one million euros is registered on receivables from contracts with customers "Uniprom metali", "Srbija Kargo" and "Trans Cargo Logistic".
There is also a loan with Hipotekarna Banka of 173.048 euros, where nine open freight wagons with an estimated value of 516.460 euros were pledged in favor of the bank to secure the loan.
Montekargo has liabilities to suppliers of 1,2 million euros, which have decreased compared to 2023 when they amounted to 2,3 million euros.
However, the company has seen its debts to related companies increase from 2,6 million in 2023 to four million at the end of last year. The most they owe is to Railway Infrastructure, three million, and to Railway Rolling Stock Maintenance, one million euros.
Montekargo also has other operating liabilities of 2,2 million euros, of which the debt for payroll taxes amounts to 710 thousand euros, for the housing fund and disability fund in the amount of 577.102 euros, for default interest 565 thousand euros, for the housing needs of employees 85 thousand euros,...
ŽICG debt to be repaid in 80 installments
The auditor pointed out two errors in the financial statements. He states that during 2024, the value of equipment and transport vehicles (wagons and locomotives) was increased by 105.263 euros based on regular and ongoing maintenance. Therefore, he indicates that the plant and equipment were overvalued by the stated amount, and the costs of ongoing maintenance of the assets were underestimated.
He stated that, by the protocol on the settlement of mutual obligations between Montecargo and Railway Infrastructure dated 28 August 8, Montecargo obliged to pay the debt, which amounted to 2024 euros as of 18 August 8, in 2024 monthly installments. The auditor points out that on this basis, long-term liabilities were underestimated and short-term liabilities were overestimated by 2.180.351 euros.
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