Montenegro’s state-owned power utility EPCG recorded a net profit of €10.2 million in 2024, marking an 80.5% decrease from the €52.5 million profit achieved in 2023. The company’s pre-tax profit stood at €12.47 million, with retained earnings reaching €70.17 million by year-end.
EPCG cited multiple factors for the profit slump, including unfavorable hydrological conditions that reduced hydroelectric output and stock market fluctuations that impacted export revenues. The absence of one-off gains from asset transactions, such as 2023’s acquisition of Zeljezara steel mill, further contributed to the decline. Despite these challenges, the company maintained financial stability and continued investments in renewable energy, digital transformation, and grid modernization to reduce dependence on hydrological and market volatility.
The utility’s electricity sales revenue fell to €416.4 million, down €36.6 million year-on-year, while other operating revenues dropped sharply from €41.1 million to €7.7 million, partly due to reduced asset revaluation income.
Operational challenges included the ecological reconstruction of Pljevlja thermal power plant, which was offline from April to November, resulting in an estimated €90 million loss in potential generation. EPCG compensated by securing about 75% of its electricity needs through market purchases.
Total expenses rose to €390.9 million (up €7.9 million from 2023), driven by higher operational costs, taxes, and contributions. Employee costs decreased to €31 million from €34.2 million, while depreciation expenses saw a modest reduction.
EPCG’s total assets grew to €1.297 billion (from €1.274 billion in 2023), with increases in fixed assets and cash reserves. Capital investments totaled €52.86 million (€22 million less than 2023), primarily funding renewable energy initiatives, including the Solari 5000+70MW project, Pljevlja TPP reconstruction, hydro turbine overhauls, and solar power plant development.
