The Montenegrin utility company EPCG has reported a significant financial downturn for the year 2025, culminating in a net loss of 92.1 million euros. This figure marks a stark contrast to the previous year’s profit of 11 million euros, primarily attributed to an eight-month operational shutdown of TPP Pljevlja, which was undergoing necessary environmental modernization. The extended downtime of this thermal power plant has had profound implications for the company’s overall financial health.
Financial analyses reveal a concerning decline in revenue alongside rising operational costs. EPCG’s sales revenues decreased to 397.4 million euros, falling by over twenty million euros compared to the prior year. Concurrently, the company’s operating expenses surged to 466.1 million euros, reflecting an increase of approximately 75 million euros year-on-year. Notably, personnel costs saw a slight reduction, totaling 28.5 million euros, while the workforce contracted to an average of 1,170 employees.
This combination of reduced income and escalating expenditures has resulted in a substantial annual deficit for EPCG. Despite facing these challenges, the company was partially buoyed by accumulated reserves, reporting retained earnings of around 72 million euros as it entered 2025. However, this cushion was insufficient to offset the losses, leading to accumulated losses of 19.3 million euros by year-end.
From an asset perspective, EPCG has experienced growth in its long-term infrastructure investments. The company’s total fixed assets reached 1.173 billion euros, reflecting an increase of about 75 million euros from the previous year due to ongoing capital projects within the energy sector.
The events of 2025 underscore the impact of operational disruptions and cost inflation on EPCG’s financial stability. The protracted shutdown of TPP Pljevlja stands out as a critical factor that contributed to the utility’s shift from profitability to notable financial loss.
