Montenegro’s state-owned power utility, EPCG Group, has returned to profitability in the first half of 2026, reporting a consolidated net profit of €19.3 million. This marks a significant turnaround from a loss of €30.5 million during the same period in 2025.
The improvement of nearly €50 million in net profit occurred despite a decline in consolidated revenues, which totaled approximately €213 million. This suggests that reductions in costs and enhanced operational conditions were pivotal to the company’s recovery.
EPCG’s total assets rose by about €70 million, bringing the total to €1.56 billion. However, the company faces substantial financial challenges as it embarks on a capital-intensive investment strategy focused on renewable energy sources.
The utility’s outstanding loans amount to around €304 million, with approximately €82 million classified as short-term borrowing. Additionally, cash reserves have decreased to about €24.5 million, which is roughly €12 million lower than the previous year.
This financial data underscores the disparity between EPCG’s improved profitability and its limited cash flow, especially in light of its ambitious investment plans. The company is actively expanding its renewable energy generation portfolio, including projects like the Gvozd wind farm, and is exploring further investments in solar energy and battery storage solutions.
EPCG has initiated discussions with international financial institutions to secure funding for these future projects. The Pljevlja coal mine, which feeds Montenegro’s primary thermal power facility, has contributed positively to this financial shift by reporting a profit of approximately €3.2 million, compared to a loss of €4.5 million from the previous year.
The recent uptick in earnings enhances EPCG’s capacity to allocate equity for new initiatives and supports its borrowing potential. Nonetheless, the existing debt load necessitates careful structuring of future investments across internal funds, commercial financing, and loans from international financial institutions.
The results for the first half of the year indicate a notable financial recovery for EPCG; however, the critical challenge remains whether the utility can maintain this momentum and generate sustainable free cash flow while facilitating Montenegro’s transition towards a more diversified energy landscape.
