The overall net performance of Montenegro’s state-majority energy companies in 2024 remained positive, but financial results deteriorated compared to 2023. Business risks across the ten analyzed companies were assessed as moderate. The total value of their assets reached nearly €2 billion, representing 25% of GDP and about 50% of all non-financial state-owned companies’ assets.
This information comes from a government-approved report analyzing the operations of state-majority energy companies in Montenegro from 2019 to 2024. The analysis covers ten companies under the supervision of the Ministry of Energy and Mining, including Elektroprivreda Crne Gore (EPCG) and its subsidiaries: Rudnik Uglja Pljevlja (RUP), Crnogorski elektrodistributivni sistem (CEDIS), Zeta Energy, EPCG-Solar Gradnja, and EPCG-Željezara Nikšić. Other companies included are Crnogorski elektroprenosni sistem (CGES), the Electricity Exchange (BELEN), Crnogorski operator tržišta električne energije (COTEE), and Montenegro Bonus.
The report highlights that EPCG Group’s performance largely determines the sector’s results, with total assets of €1.6 billion in 2024. The consolidated net profit for EPCG Group was €12 million, mainly driven by EPCG’s parent company, RUP, and Zeta Energy. However, this represented an 84% decrease compared to 2023, reflecting lower returns on equity (ROE) and assets (ROA). Factors contributing to the decline included adverse hydrology, energy price fluctuations, reduced electricity export revenues, low prices for energy sold to distributors, high CO₂ emission costs, power plant maintenance, and regulated energy prices.
CEDIS posted positive results, while EPCG-Željezara Nikšić operated at a loss. EPCG-Solar Gradnja achieved profitability but continues to carry high financial risk for the parent company. CGES recorded a net profit of €24.8 million, down 30.5% from 2023, due to lower cross-border capacity revenues and slightly higher operating expenses. Liquidity remained adequate, and solvency improved. Other companies also reported positive results: BELEN earned €376,608 (up 84%), COTEE €11,216 (up 66.9%), and Montenegro Bonus €109,420 (down 44.7%).
Despite positive overall results, the report notes a decline in profitability and liquidity, stressing the need to define state ownership policies in energy companies, particularly for poorly performing entities such as EPCG-Solar Gradnja and EPCG-Željezara Nikšić. Recommendations include improving corporate governance by enhancing transparency and accountability, strengthening audit committees, setting clear criteria for board member appointments, linking hiring and promotions to competencies, and reducing the negative impact of overstaffing.
The report also emphasizes the need to reduce losses, improve receivables collection, increase environmental investments, and invest in continuous staff training in IT, energy, legislation, and digital skills. Strengthening the independence of subsidiaries from parent companies and enhancing the Ministry of Energy and Mining’s oversight, in coordination with the Ministry of Finance, is also highlighted as critical for future sector stability.
