Montenegro’s electricity transmission operator, the Montenegrin Electricity Transmission System (CGES), reported net profit of 19,304,353 euros for the first nine months of 2026, up 15.8% from the same period a year earlier, according to its financial report. The company also estimated a negative regulatory revenue adjustment of 14.2 million euros for the period, which could affect the final regulatory treatment of its revenues.
Profit rose by 2.64 million euros from 16,668,269 euros in January-September 2025. Total revenue reached 78,844,347 euros, an increase of 7.66 million euros, or 10.77%, year on year.
Core revenue from sales accounted for 76.48 million euros of the total, while other revenue was 2.36 million euros. Expenses rose by 5.17 million euros, or 10.15%, to 56.08 million euros, according to the report.
Investment outlays on intangible assets, property, plant, equipment and biological assets totalled 25.42 million euros in the nine months. That was more than double the 12.44 million euros recorded in the corresponding period of 2025.
Regulatory adjustment awaits decision
CGES operated under a temporary regulatory framework in 2026, with prices for use of the transmission system kept at their 2025 levels. Differences between actual regulated revenue and costs, as well as between realised energy volumes and approved values, are expected to produce a negative adjustment of 14.2 million euros for the first nine months.
The company’s report described the estimate as “based on currently available economic and energy data, estimated at 14.2 million euros for the period.” The adjustment remains an estimate and is not a final reduction to the net profit reported by CGES.
The Energy and Regulated Utility Services Regulatory Agency is to set the final amount and determine how it will be allocated by decision, following a process under the Energy Law. The next regulatory period begins on 1 January 2027.
CGES also identified possible effects from the European Union’s Carbon Border Adjustment Mechanism (CBAM), which covers electricity. The company estimates that its application could reduce demand for cross-border transmission capacity and the revenue CGES earns from allocating that capacity.
Those developments could weigh on the company’s profitability in 2026, CGES said, but would not threaten the sustainability of its operations or its financial stability. The company said its reported results showed stable operations despite regulatory and market risks.
Cash, debt and liquidity
Cash stood at 41.08 million euros at the end of September, down from 55.28 million euros at the start of the year. Net cash inflow from operating activities was 21.24 million euros, while financing outflows, including loan repayments and dividend payments, were slightly more than 10 million euros.
At the end of September, CGES had total assets of 385.27 million euros and equity of 288.62 million euros. Approximately 75% of its assets were financed by equity, with the remainder funded by liabilities.
The current liquidity ratio increased to 3.02 at the end of September from 1.96 at the end of 2025. The quick liquidity ratio also rose, reaching 2.98 from 1.89 over the same period.
Total liabilities declined to 96.65 million euros from 100.48 million euros at the end of 2025, while the debt ratio fell to 0.25 from 0.27. The figures came as CGES spent more than twice as much on asset purchases as in the comparable period last year.
CGES shares are listed on the prime market of the Montenegro Stock Exchange. Their market price recorded a slight decline during the first nine months of 2026.
