Montenegro’s state-owned power utility, EPCG Group, has announced a return to profitability in the first half of 2026, achieving net earnings of €19.33 million, a significant recovery from a €30.5 million loss recorded in the same period last year.
This improvement of nearly €50 million year-on-year was attributed to enhanced electricity generation, decreased wholesale purchases, and improved trading outcomes. Consolidated net sales revenue for the group reached €208.12 million, with operating profit reported at €21.77 million.
EPCG generated 1.656 TWh of electricity, exceeding its production plan by approximately 3%, which positively impacted the balance between domestic output and market purchases. The company sold about 542,277 MWh on the wholesale market for roughly €57 million.
<pWholesale electricity purchases were significantly reduced to 224,974 MWh, incurring costs of around €16.2 million. The parent company itself achieved a net profit of €15.86 million, reversing a loss of €24.53 million from the first half of 2025.
This financial turnaround enhances EPCG’s position as it enters a new investment cycle focused on renewable energy generation, storage solutions, hydro modernization, and grid-related initiatives. The utility is expanding its wind capacity through the Gvozd project and is currently engaging with international financial institutions for funding additional generation and energy security projects.
The increase in earnings bolsters the company’s ability to contribute equity towards these initiatives, potentially decreasing its dependence on debt financing. Additionally, the results highlight the critical role that electricity trading plays in EPCG’s profitability.
With stronger domestic generation, EPCG is less reliant on costly imports and can sell surplus electricity in regional wholesale markets. However, challenges persist, such as rising coal costs during this period and slight declines in liquidity indicators, which underscore financial pressures linked to substantial capital expenditure needs.
The ongoing challenge for EPCG will be maintaining its recovery while simultaneously financing its transition towards a more diversified portfolio that includes wind, solar, and storage assets.
