RiTE Ugljevik reels from early-2026 losses as coal supply disruptions force shutdown; RS government moves to secure future output

RiTE Ugljevik has entered 2026 with a steep financial deterioration after operational disruptions curtailed both electricity and coal output, underscoring how tightly power generation economics can hinge on upstream supply reliability. In the first quarter, the company’s losses significantly exceeded the deficit it recorded for all of 2025, highlighting the scale of the disruption and its immediate impact on cash-generating capacity.

First-quarter loss far larger than last year’s full-year deficit

The company posted a loss of €18.3 million over the first three months of 2026. That result was roughly €4 million worse than the full-year loss for 2025, signaling that the downturn accelerated rather than merely continued from prior weakness.

Management pointed to a sharp revenue collapse as the key driver. Income fell from €18.8 million in the same period last year to just €2.2 million, while total expenses stayed broadly stable at more than €20 million. The gap between falling revenues and steady costs translated directly into deeper losses.

Shutdown linked to coal shortages at Ugljevik Istok open-pit mine

The negative result was tied to a suspension of electricity and coal production that began early in 2026. The halt stemmed from insufficient coal supply, which management linked to delays in overburden removal and development works at the Ugljevik Istok open-pit mine. Those setbacks prevented the plant from maintaining normal operations, feeding through to weaker financial performance.

The facility—one of the key power producers in the Republic of Srpska (RS)—was offline since 12 January but has recently returned to operation. The restart is intended to stabilize output after weeks of disruption.

RS government acquisition aims to rebuild long-term resource base

Beyond restoring near-term activity, RS authorities have moved to strengthen longer-term prospects for coal-based generation. The government acquired Comsar Energy RS and its concession for the Ugljevik Istok 2 mining site for more than €120 million.

The acquisition is expected to provide a new resource base that could support recovery efforts and help underpin future operations at RiTE Ugljevik’s power assets—an important step given that earlier production stoppages were tied directly to upstream development delays and resulting coal shortages.

For investors watching Bosnia and Herzegovina’s energy sector, the episode illustrates how operational interruptions can quickly translate into outsized financial stress when revenue drops faster than costs can adjust—and why securing dependable mine development remains central to sustaining generation economics.