ZAGREB, June 18 (Hina) - Companies owned by the state or in which the state is the majority owner attained better business results than the previous year with a total of 34.42 million euros before tax, however, profits for Croatian
Telecom (HT) were halved while investments for all public companies last year were less than planned.
ZAGREB, June 18 (Hina) - Companies owned by the state or in which the
state is the majority owner attained better business results than
the previous year with a total of 34.42 million euros before tax,
however, profits for Croatian Telecom (HT) were halved while
investments for all public companies last year were less than
planned. #L#
The government will hold a special session on Wednesday to discuss
the business results of 21 companies, partially or entirely owned
by the state. The government will be presented with data relating to
the total revenue and expenditure of companies, the number of
employed persons in them, salaries and investments. The government
will evaluate the process of restructuring and the work of
administrative and supervisory boards in these companies.
According to the material to be presented to the Government, public
companies and HT last year realised a total revenue of about 6.31
billion euros which is 12 per cent more than the year before while
expenditure amounting to 6.28 billion euros increased by nine
percent.
Profits in these companies before tax last year amounted to about
34.42 million euros while the year before they ended up with a total
loss of 116.46 million euros.
The best improvement in business was recorded in Ina with a profit
of 97.95 million euros while the year before that, the company
recorded a loss of 58.23 million euros. The improved business
results in Ina are the result of a new formula to calculate the price
of oil products. According to draft conclusions that are to be
presented to the Government, new tariffs can soon be expected for
gas and electricity.
Following Ina, the greatest profit was realised by HT, 69.79
million euros, which is half the amount than in 2000 when it
amounted to 0.14 billion euros. The large loss in HT's profits was
explained by the change in accounting, namely the adjustment to
accounting methods used by Deutsche Telekom - the majority owner of
HT since last year.
An overall view of public companies shows an average salary of
approximately 550 euros per month which is 2.3 percent more than the
year before. The growth in salaries is somewhat slower than the year
before (e.g. salaries in 2000 compared to 1999 increased by 14
percent), however, the government isn't quite satisfied with this
as last year a decision was made to halt any increases in salaries.
The Government will most probably be dissatisfied with the fact
that almost all public companies did not realise their planned
investments. Last year it was stressed that public companies would
be the main investors and it was intended that these companies would
invest a total of 1.45 billion euros. However, data indicates that
public companies only invested a total of 1.02 billion euros which
is only 70 percent of the planned.
The government should also adopt a proposal under which collateral
for a EUR60 million loan on the domestic market should be issued for
the building to the Zagreb-Rijeka Highway while about 115 million
euros of existing debts which were obtained through government
guarantees would as of next year be assigned to public debts or
rather at the burden of the state budget.
(hina) sp sb