Luka Koper d.d., which contributes ninety-three percent of total Luka Koper Group revenues, had to face some tough challenges in 2009. In the midst of a global recession, and a world economy pre-occupied with the creation of mitigation strategies, the company also had to contend with suspicions as to irregularities, a criminal investigation, as well as a change in Management and Supervisory boards.

Cargo throughput at the Port of Koper recorded a year-on decline of eighteen percent, but due to the variety of handling services implemented by Luka Koper this downturn was not as considerable as in other European ports. If we leave aside the investment revaluation, value write-offs and other unpredicted expenses, the company’s performance – an operating profit in the amount of 10 million euros and a commensurate 5.5 million euro net profit – could be considered satisfactory. 

Luka Koper’s new Management and Supervisory Boards want to found their work on new and healthy foundations, thus the decision was adopted to effect the impairments in order to clean the balance sheet, and this resulted in a net loss for the company of 46.3 million euros. The write-downs accomplished include investments which are now considered by the management to have never been realised, as well as those that were over-valued or incapable of yielding the anticipated results. The largest of the impairments are two investments – holdings in Slovakia’s Trade Trans Invest a.s. and Slovenia’s transport and logistics provider Intereuropa. The re-valuation of the holding in TTI revealed that its value amounts to only one-fifth of that assessed upon acquisition of a ten percent stake in the company. The Intereuropa investment has been recapitulated at fair value, taking into consideration the fact that this isn’t a classical financial investment but a strategic investment in a partner enterprise.

The asset write-offs also encompass the investments in land at Ankaran Bonifika which is not the property of the company and for which building permission cannot be acquired, as well as the documentation preparation of a roofing plan for the Bulk Cargo Terminal, which is not feasible within the set frames. 

Despite this performance, Luka Koper d.d. looks ahead with optimism. Operating profit in the amount of 20.4 million euros will allow the company to accomplish its plan for 2010. Based on January’s cargo throughput, this year started very well. Further activities to reduce costs and focus on operational liquidity shall be pursued during 2010, while enhanced marketing activities and promotion of the Northern Adriatic transport route should result in a nine percent increase in cargo throughput. Due to harsh conditions in the lending markets, Luka Koper shall consider the disposal of certain investments in order to finance infrastructure investments aimed at delivering port services capable of determining the success of the port in the longer term. In addition, and following the adoption of the national spatial plan, the company is actively searching for potential partners in the creation and realisation of the new development cycle for the Port of Koper.

Janez Požar 
President of the Supervisory Board 

Gregor Veselko 
President of the Management Board

The  full financial statemets for 2009 ara available here.