The coalmine and thermal power plant (RiTE) Ugljevik, a subsidiary of the state-owned power utility ERS, reported a net loss of €15.3 million for the first nine months of 2024. This marks a significant increase from the €5.9 million loss recorded during the same period last year.
Operating revenues for RiTE Ugljevik totaled €59.3 million, reflecting a 16.1% decline year-on-year. Meanwhile, operating expenses rose by 6.6%, reaching €73.8 million.
In response to these financial challenges, shareholders of RiTE Ugljevik have approved a plan to first reduce and then increase the company’s share capital. The plan involves reducing capital from €130.8 million to €34.6 million to cover €92.8 million in losses and create legal reserves of €3.5 million. Following this reduction, the company will issue 31 million new shares with a nominal value of €0.51 each, raising total capital to €50.4 million and addressing part of its arbitration obligations to Slovenian company Elektrogospodarstvo.
The funds raised through the share issuance will be allocated to cover the arbitration ruling obligations, which will help decrease the overall debt. This debt repayment is expected to improve RiTE Ugljevik’s financial position and creditworthiness.
