The Montenegrin electricity transmission system operator, CGES, has announced a significant decrease in its financial performance for the first quarter of 2026. The company reported a net profit of 6 million euros, down from 7.7 million euros during the same period last year. This decline highlights the ongoing challenges faced by the utility sector in Montenegro, particularly in managing operational costs and revenue generation.
In terms of revenue, CGES recorded net sales of 23.6 million euros for the first three months of the year, reflecting an 8.9% year-on-year decline compared to Q1 2025. Concurrently, operating expenses showed a slight increase of 1.2%, reaching 17.3 million euros. This combination of falling sales and rising costs has pressured the company’s profitability.
Total assets for CGES have also seen a downward trend, decreasing by 1.7% from the end of 2025 to stand at 369.2 million euros at the close of March 2026. The company’s retained earnings amounted to 125.9 million euros, illustrating its capacity to accumulate profits over prior periods despite recent challenges.
The liability structure of CGES indicates stability but with some tightening; long-term liabilities reached 33.6 million euros, while short-term liabilities were recorded at 20.2 million euros. These figures suggest that while the company maintains a manageable level of debt, it is facing pressures that could impact future financial flexibility.
The ownership landscape of CGES remains heavily influenced by state involvement, with the Government of Montenegro holding 55% of shares. The Italian transmission operator, Terna, holds a significant stake at 22.09%, while Serbian transmission system operator EMS, which entered CGES’s ownership structure in December 2015 by acquiring approximately 10% of shares, continues to play a vital role as a strategic shareholder.
This partnership was further solidified when EMS increased its stake by an additional 5% in January 2021, enhancing regional cooperation in electricity transmission and reinforcing its influence within Montenegro’s energy landscape.
