Montenegro’s state-owned Maintenance of Railway Rolling Stock (OŽVS) recorded a 983,776 euro net loss in the first nine months of 2026, while short-term liabilities reached 8.91 million euros and cash stood at 1,509 euros. Its financial statements show the company continued to operate at a loss as preparations proceeded for its planned merger with Railway Transport of Montenegro, with no confirmed completion date.
For the period from 1 January to 30 September 2026, the net loss widened from 790,561 euros in the same period a year earlier. The increase was 193.2 thousand euros, or 24.4%, according to the statements, adding to the financial issues that need to be addressed as the two state-owned railway companies prepare to combine.
OŽVS’s sales revenue rose to 1.65 million euros from 1.62 million euros in the first nine months of 2025. Other operating revenue was 97.4 thousand euros, bringing total operating revenue to approximately 1.75 million euros.
Staff costs, including wages, wage compensation and other personal expenses, totalled 1.91 million euros, about 161 thousand euros more than in the comparable period of 2025. Those costs exceeded the company’s revenue from sales of services by approximately 255 thousand euros. OŽVS had 169 employees at the end of September 2026.
Operating costs excluding employee expenses were 424.9 thousand euros, while depreciation was 182.7 thousand euros. The operating loss increased to 582,963 euros from 387,099 euros in the same period of the previous year. Financial expenses of 400.8 thousand euros further increased the company’s overall negative result.
Accumulated losses from previous years reached 10.15 million euros at the end of September, compared with 9.14 million euros at the end of 2025. Including the net loss for the first nine months of 2026, the total reported loss in equity was approximately 11.14 million euros.
OŽVS’s total equity fell to 9.87 million euros from 11.07 million euros at the end of 2025, while its share capital was about 21 million euros. Total assets were estimated at 19.3 million euros, including property, plant and equipment with a book value of about 16.08 million euros.
Short-term liabilities rise as cash remains low
Short-term liabilities increased by about 1.37 million euros from the end of 2025 to 8.91 million euros at the end of September 2026. Approximately 6.5 million euros was recorded as other short-term liabilities.
OŽVS’s obligations for value-added tax and other public revenues amounted to 2.04 million euros, while amounts owed to suppliers totalled 108.8 thousand euros. The company had 1,509 euros in cash and cash equivalents in its accounts at the reporting date.
Short-term receivables stood at 2.07 million euros and inventories at about 1.1 million euros, the financial statements show. These figures were reported alongside the company’s liabilities and its very low cash balance at the end of the period.
The reported financial indicators point to pressure on OŽVS’s liquidity as its financial position is being aligned with that of Railway Transport of Montenegro. The financial condition of OŽVS, including the valuation of its assets, receivables and liabilities, is among the issues being considered in the merger preparations.
OŽVS’s board of directors has called a repeat extraordinary shareholders’ meeting for 16 November 2026 at 11 a.m. at the company’s headquarters in Podgorica. The notice for the meeting was published on 2 November 2026.
The agenda provides for approval of the 2025 business report and financial statements, approval of the auditor’s report on the 2025 financial statements, and appointment of an auditor for 2026. It does not include a decision on merging OŽVS into Railway Transport of Montenegro.
Merger preparations continue without a new deadline
The merger process is being carried out under a conclusion adopted by the Government of Montenegro on 22 February 2024. Its stated aims are to rationalise operations, reduce administrative and other costs, and create a financially more sustainable system for railway maintenance and passenger transport.
In February 2026, the Ministry of Transport reported that the process had entered a phase of intensive legal, financial and organisational preparations. A contract for economic and legal consulting services had been signed, an internal commission had been formed to monitor the process, and an implementation plan had been prepared.
Preparations included detailed analyses of the financial and legal positions of both companies. The Competition Protection Agency, Securities and Exchange Commission, Central Registry of Business Entities and Central Securities Depository and Clearing Company provided opinions as part of the work, according to the ministry’s information.
The financial position of OŽVS and the valuation of its assets, receivables and liabilities are key questions in the process. A capital increase was also considered as a way to align the companies’ finances and regulate obligations between them.
The target previously announced for completion by the end of 2025 was not met, and no new final date has been confirmed. The upcoming shareholders’ meeting is scheduled to address the 2025 accounts and auditor appointments rather than a merger decision.
In early 2024, Filip Radulović, then transport minister, warned that OŽVS was on the brink of bankruptcy and said analyses at the time considered the merger necessary to avoid bankruptcy. OŽVS was established in late 2010 when it was separated from Railway Transport of Montenegro. The planned merger would bring railway maintenance and transport back together within one company.
The State of Montenegro owns 94.18% of OŽVS. Individuals hold 3.42%, the Pension and Disability Insurance Fund holds 1.54%, and the Employment Agency of Montenegro holds 0.61%; the remaining shares belong to other smaller shareholders. Goran Đurković is OŽVS’s executive director, and Predrag Burzanović is chairman of its board.
