Energoprojekt exports Serbian know-how to four continents - Without strategic partner in 2011

(Vladimir Milovanovic)

Energoprojekt ended last year with the revenue of 228 million euros and the profit of 9 million euros. The reason for a bit poorer performance is the global economic crisis, as well as a change in the management staff in late 2010. However, this company operates on four continents and participates in the design of projects worth EUR 350 million, which is why the management is optimistic.

- We have a good basis to plan further development and contracting of new jobs – Energoprojekt Holding CEO Vladimir Milovanovic says in a statement for eKapija.

Energoprojekt is in the prime market of the Belgrade Stock Exchange and about 9.5 million shares of that company are traded on a daily basis.

Energoprojekt Holding comprises nine companies, seven of which are engaged in planning, consulting and construction activities, while the remaining two are providing financial insurance and IT services.

- Our markets are situated on four continents. We are working on valuable projects in Peru, Africa, the Persian Gulf countries, Russia, Kazakhstan, and we also have offices in Frankfurt and London. Out of 2,650 employees, over 800 are engineers. It is a huge staff potential – Milovanovic points out.

When it comes to potential projects in Serbia, Milovanovic reminds that the expected investment in the energy sector amounts to EUR 5 million, the same as in the road infrastructure, while EUR 3 billion investments are planned to be made in the ecology sector.

- Energoprojekt is currently trying to implement some capital projects in association with other Serbian companies. One of such projects is the reconstruction of Kolubara B steam power plant. We have showed our investors that we are capable of doing everything by ourselves and that we work better alone than as a subcontractor of a foreign company - Milovanovic stresses.

- With the growth of investments in Serbia, the revenues of Energoprojekt have grown as well. In the period 2004-2010, revenues grew by 170 percent, profits were increased by 190 percent, while the productivity was doubled – says Milovanovic.

(the building of Energoprojekt)

This company currently has about 350 million euros worth of contracts for jobs in the country and abroad, including a EUR 10.8 million energy project in Nigeria, a EUR 17 million project in the oil industry in Kazakhstan, a EUR 50 million road network project in Uganda, etc.

According to Milovanovic, the state does not intend to keep its stake in Energoprojekt for a long time, meaning that a strategic partner will be sought for the company. Lavalin from Canada is mentioned as the most serious candidate, but Milovanovic says that concrete negotiations have not been conducted yet.

- What is necessary for a strategic partnership is the willingness of both sides, which will in our case probably take some time. There are many interested partners, Lavalin is not the only option. We are seriously negotiating with another two companies, but it is most likely that an agreement on the strategic partnership will not be signed this year – Milovanovic concludes.

M.D.