Montenegrin state-owned power utility EPCG has recorded a significant net loss of €19.2 million for the first nine months of 2024, a sharp decline from a profit of €63 million during the same period in 2023.
The company’s net sales revenues fell to €294 million in the January-September period of 2024, compared to €352 million in the previous year. Additionally, other operating revenues dropped dramatically to €1.1 million, down from €35.5 million in the same period last year, when EPCG had received €32.5 million from asset value adjustments. In contrast to 2023, there was no income from asset value adjustments in 2024.
Despite a slight reduction in operating costs, which totaled €293 million for the first nine months of 2024 (compared to €301 million in 2023), EPCG reported an operating loss of €23.4 million. This marked a sharp contrast to the operating profit of €60.7 million reported in the same period last year. Costs related to salaries and benefits remained relatively stable, slightly decreasing from €25.3 million in 2023 to €25.2 million in 2024.
EPCG attributed its weaker financial performance primarily to lower rainfall, which resulted in reduced hydropower production, as well as a decrease in electricity prices on the market this year.
The drop in revenues and profits reflects the ongoing challenges faced by EPCG, which is heavily dependent on weather conditions for hydropower generation, along with the volatility of energy market prices.
