The Board of Directors of Elektroprivreda Crne Gore (EPCG) has reportedly requested that its subsidiary, Rudnik uglja Pljevlja (RUP), pay out dividends for the years 2022 and 2023 to EPCG. However, the management of RUP and the company’s board have opposed this decision due to the significant challenges the company is expected to face in the upcoming year, which is expected to be one of the most difficult in its history.
EPCG, which owns RUP, is also the shareholder assembly responsible for overseeing the operations of the Pljevlja-based company. The amount of the dividends to be paid by RUP is yet to be determined but is expected to be a multi-million euro sum. In 2023, RUP reported a net profit of 15.19 million euros, while in 2022 it earned 9.4 million euros. The company’s executive director, Nemanja Laković, recently announced that RUP is on track to achieve a similar profit of around 15 million euros this year, despite an extended overhaul of the Pljevlja thermal power plant (TE Pljevlja) and ongoing investments.
However, Laković also highlighted that the coming year will be exceptionally challenging for RUP and the energy system in Montenegro. It will not be a year for profit but rather one of survival, with a focus on completing long-overdue projects such as the ecological reconstruction of TE Pljevlja and the rerouting of the Ćehotina River.
Due to the planned eight-month downtime of the thermal plant for ecological upgrades, RUP anticipates a loss of 48 million euros in revenue next year. The company also has several major investments planned for 2024, including the completion of the Ćehotina River rerouting project, which is crucial for ensuring the supply of coal necessary for the stable operation of the thermal power plant. This project alone is expected to cost around 20 million euros. Additionally, RUP plans to acquire land from residents of Kalušić for coal extraction, which will require 3.6 million euros, as well as several investments related to its business transformation plan, such as starting asphalt production, opening a safety equipment factory, and taking its laboratory services to the market.
If EPCG’s decision to withdraw dividends from RUP is implemented, the liquidity of the coal mine could be significantly impacted, potentially jeopardizing these investments.
Meanwhile, EPCG, which reported a loss of 19.2 million euros in the first nine months of 2023, has been struggling financially. This is a 130.5% decline compared to the same period in 2022. The company’s financial performance has worsened by 82.17 million euros compared to the same period last year when it reported a profit of 62.97 million euros. EPCG’s revenue from sales in 2023 amounted to 294 million euros, a 23.89% decrease compared to the previous year. Meanwhile, operating expenses, including wages and other costs, rose by 2.42% to 318 million euros.
In contrast to EPCG, Rudnik uglja has performed better, reporting a profit of 3.33 million euros for the same period.
