7

NLB Group's net profit doubles to EUR 184m for January-September 

The group around NLB bank has posted EUR 184m in net profit for the first nine months of 2017, after generating EUR 91.5m in net profit for the same period last year. The figure is a significant improvement on the full year net profit for 2016 of EUR 110m.

According to unofficial information, the Group's profit could reach EUR 200m by the end of the year, almost double that of 2016. "The Group's profit for the first nine months forecasts record results for 2017," Chief Supervisor, Primož Karpe, said after the supervisors were acquainted with the nine-month report. NLB banks in the Balkans contributed EUR 73.8m to the group's net profit or 52% more than for the same period last year, and paid a dividend of EUR 48.1m to the banks owner, the core company, NLB, which helped push up profit to EUR 145.3m for the January-September period, up from EUR 53.9m for the same period last year. The bank's nine-month results exceeded last year's profit by 128%.
The supervisors believe that, by finishing in the black for the fifteenth consecutive quarter, that NLB group has confirmed sustainable profitable operation. Karpe added that the Group's operations in the Balkans offset the effects of the current situation in Slovenia and the "significantly lower margin which the core bank has in the domestic market". The Group's profit before provisions and impairments of EUR 36.9m, reached EUR 158.4m in the first nine months, up 10% year-on-year. Net revenue rose by 2%, while costs fell by 3%. The share of bad loans was 11.9% at the end of September, while the share of negative exposures fell to 8.3%. Capital adequacy reached 16.3%.

Hidria launches a new roboticised production line

At the end of November, Slovenian industrial conglomerate, Hidria, launched a EUR 5m roboticised production line at its Technology Park factory in Koper, to supply top-end steering components to the automotive industry. The ceremony was addressed by Prime Minister Miro Cerar.

Hidria will need the new facility to manufacture aluminum steering systems after striking a EUR 60m contract with Volkswagen. Hidria CEO, Iztok Seljak, said that the company is now able to offer development three years before the launch of production of key steering components. The new line also marks a "leap to the top rank of steering component manufacturers" and a major reference in the global market, and will enable Hidria to increase its market share in Europe above its current 20%. At its Koper location Hidria is planning to establish a platform for development of green mobility, dubbed the Edison, as well as the InnoRenew centre of excellence for research and innovation in the area of renewable materials and sustainable building.

Hidria plans to increase sales revenue to EUR 242m this year, from EUR 215m in 2016. EBITDA is projected to increase from EUR 26m to EUR 32m. Growth of between 5% and 10% is also planned for 2018. Hidria employs more than 430 people at its Koper location and has invested EUR 45m in production there over the past eight years.

Government not buying Mercator, will look into Agrokor sale contract 

At the end of November, the Economy Minister, Zdravko Počivalšek, told MPs that the government was not thinking about buying Mercator as there were other ways to ensure the stable operation of the retailer. The government will attempt to determine whether the contract for Mercator's sale to Agrokor contained an anti-corruption clause.

Briefing the parliamentary Public Finance Oversight Commission on the latest developments related to Mercator, the Minister noted that the retailer was improving its results, despite the troubles of its Croatian owner. The government wants Mercator to be a stable and developing company in the long run, he said, adding that he was in touch with Ante Ramljak, the Croatian government-appointed crisis manager for Agrokor.

"There are two paths for something to change in Mercator: the decisions of the current owner, which in a governing sense means that through the representative of the Croatian government, or with measures taken by creditors on which the government has no influence." According to the Minister, the government wants stable ownership in Mercator, but nationalisation of the retailer is not an option because Mercator needs a partner which would embark on restructuring. Considering that Agrokor had presented incorrect balance sheets upon acquiring Mercator in 2014, the Minister expects that the companies which sold their stakes will examine the sales contract and find out whether they contain an anti-corruption clause. The government does not have direct insight into the contract, but can task the Slovenian Sovereign Holding (SSH) to demand the state-owned companies to examine it.

Source: STA