Horrifying drop in market value of Elektroprivreda RS

The Mine and Thermal Power Plant “Gacko” was worth 927 million KM in 2007 based on share value, while its current market value is only 9.8 million KM. The same is true for the Mine and Thermal Power Plant “Ugljevik”, which is now worth 9.9 million KM, while nine years earlier it was worth as much as 688.6 million KM, writes Blic, as reported by Patria. 

According to data from the Banja Luka Stock Exchange, the value of shares in these companies is at an all-time low. Experts claim that the drastic drop in share prices is certainly influenced by the losses of these companies. According to last year's financial reports, the Mine and Thermal Power Plant „Gacko“ operated with a loss of 21.6 million KM, and the Mine and Thermal Power Plant „Ugljevik“ with a loss of 18.2 million KM.

- At the Mine and Thermal Power Plant “Gacko” there were floods, the technology is old and there has been no investment for a long time. At the Mine and Thermal Power Plant “Ugljevik” the situation is unclear due to a lawsuit from Slovenia and non-transparent cooperation with the Russians on the “Ugljevik 3” project. Of course, all those who have shares in these companies see no perspective and have no confidence that “Elektroprivreda RS” can function well – says Zoran Pavlović, an economic analyst.

The companies within Elektroprivreda have become social institutions employing a huge number of workers.

- The biggest problem is that everyone looks for personal gain, to take something from that company, rather than to create something. Managers are people who are politically suitable, not experts. If state-owned companies are seen as something where private benefit is created, rather than social profit, then it is unlikely that there is a chance for recovery. Progress can only be brought by professional people, who are independent and have a vision – emphasized Pavlović.