Financial reports published through Montenegro Stock Exchange revealed a sharply uneven performance across Montenegro’s state-controlled companies in 2025, with tourism and agriculture-linked firms continuing their recovery while the energy sector absorbed heavy losses tied to the prolonged shutdown of the country’s coal-fired generation fleet.
The strongest turnaround signals came from the rehabilitation sector and the long-troubled wine producer Plantaže. The rehabilitation operator Institut Simo Milošević posted a net profit of approximately €6.5 million, marking its second consecutive profitable year after years of financial distress. Revenues climbed to around €15.8 million, supported by stronger patient volumes and revised reimbursement pricing agreements with Montenegro’s Health Insurance Fund. The company also booked extraordinary income from the sale of a former children’s department building to the state, which plans to convert the site into a new school facility in Igalo.
The improvement significantly reduced accumulated historical losses, which fell from roughly €29 million to around €21.7 million, reinforcing the view that restructuring measures initiated over recent years are beginning to stabilize operations.
A similar stabilization trend appeared at Plantaže, which remained profitable for a second consecutive year while continuing to reduce debt burdens accumulated during earlier governance and liquidity crises. The company’s recovery is particularly notable given that only a few years ago its shares were placed under enhanced market supervision after severe criticism from state auditors and concerns over corporate governance practices.
By contrast, Montenegro’s energy sector suffered one of its weakest financial years in recent memory. State utility Elektroprivreda Crne Gore recorded a net loss of approximately €92 million after the country’s coal-fired thermal power plant remained offline for more than eight months during reconstruction works. The shutdown forced the utility to import around 1,341 GWh of electricity worth approximately €142 million, at market prices substantially above regulated domestic retail tariffs.
Total EPCG revenues declined to around €397 million, while operating expenses surged to approximately €466 million because of high-cost electricity imports. The loss erased the utility’s previously accumulated retained earnings and pushed the company into negative accumulated equity territory by year-end.
However, first-quarter 2026 figures already indicate a rapid rebound. Following the restart of the thermal power plant and a stronger hydrological period, EPCG returned to profitability with approximately €36.4 million in net income during the first three months of the year. That recovery effectively offset the previous year’s accumulated deficit and restored positive retained earnings.
Coal producer Rudnik uglja Pljevlja was also affected by the thermal plant outage, reflecting the deep operational linkage between Montenegro’s coal mining and power generation sectors. Together, EPCG and the coal producer generated combined losses approaching €100 million during the year.
Grid operator Crnogorski elektroprenosni sistem nevertheless maintained positive performance, reporting profits of approximately €21 million, although below prior-year levels after the energy regulator reduced transmission-related tariff components for the 2025–2026 regulatory period.
In tourism, results remained mixed. Ulcinjska rivijera modestly improved profitability through operations centered on Ada Bojana, while Budvanska rivijera experienced a sharp earnings decline as tourism revenues softened and sales income weakened compared with the exceptionally strong previous year.
The reports collectively highlight a broader structural divide inside Montenegro’s state-owned sector. Tourism-linked assets and companies undergoing financial restructuring are gradually stabilizing after years of balance-sheet pressure, while the energy sector remains highly exposed to generation concentration risk, hydrological volatility and the cost of maintaining aging thermal infrastructure during the country’s slow transition toward a more diversified electricity mix.
