With the aim to increase budget revenues, the Croatian government adopted in June a decision according to which state owned companies should give 60% or 100% of their profit to the state budget. The share of profit to be given will be count on the state’s share in the companies. The companies in need of funds for investment projects are not subject to the new measure, HŽ Infrastrucktura is part of this category.
The railway passenger operator HŽ Putnički prijevoz is among the companies to give 60% of its profit to the state budget until mid September this year. According to 2013 half-year financial report, the operator registered a negative profit of HRK 20 million and projected for 2013 a profit of – HRK 232 million.
Based on the Policy note of the World Bank published last year, HŽ Putnički prijevoz is considered the most exposed HŽ Company, and the conditions to achieve financial sustainability would be highly questionable with a level of State contribution similar to that of 2012. According to the simulated Recommended Scenario, the market evolution of HŽ Passenger Transport should turn it into a break-even company by end-2016—when it is estimated to realize HRK 1 million in net income—and strengthen this positive trend into the future.
HŽ Putnički prijevoz owns:
– TZV “GREDELJ” d.o.o, HRK 7 million profit H1 2013
– TERSUS EKO d.o.o, HRK -756,000 profit H1 2013
– TEHNICKI SERVISI ŢELJEZNICKIH VOZILA d.o.o., HRK- 2 million profit H1 2013
– PROIZVODNJA – REGENERACIJA d.o.o, HRK – 2.4 million profit H1 2013 (HŽ Putnički prijevoz has a 77% stake)
– ŢELJEZNICKA TISKARA d.o.o., HRK 132.000 profit H1 2013
– UKUPNO OVISNA DRUŠTVA GRUPE, HRK- 5 million profit H1 2013
The rolling stock manufacturers KONČAR – Electrical Industry and Đuro Đaković are also subject to the new measure, they will have to pay 100% of their profit. The Croatian Central State Administrative Office for State Property Management has a 10.12% stake in KONČAR Group and is the major stakeholder of Đuro Đaković, with 20.44% of shares.
According to Končar’s 2013 Annual report, KONČAR – Electrical Industry registered profit before tax of HRK 141.8 million (approximately EUR 18 million). The KONČAR Group consists of KONČAR – Electrical Industry Inc. as the parent company and 20 dependent companies.
Đuro Đaković registered a profit of HRK 660,608 (approx EUR 87,200 )in 2013.