Montenegro’s Pljevlja coal mine profit plunges in 2025 as revenue falls and costs rise

Montenegro’s Pljevlja coal mine saw a steep deterioration in profitability in 2025, underscoring how quickly earnings can be squeezed when revenue weakens and costs do not fall in tandem. The company recorded net profit of around €450,000 last year, compared with €15.06 million in 2024.

Revenue decline drives the earnings drop

In its financial report, the company said sales revenues reached €32.4 million in 2025—50.4% lower than the prior year. At the same time, operating expenses rose slightly to €29.7 million, adding further pressure on margins and translating into the sharp fall in net profit.

Balance sheet expands even as performance weakens

While the income statement weakened, total assets increased to €175.4 million at the end of December 2025, up 18.7% versus end-2024. Long-term provisions and liabilities were reported at €25.8 million, with short-term liabilities at €25.5 million. Retained earnings stood at approximately €44.8 million.

EPCG majority ownership secured after 2018 takeover bid

The company’s recent performance is occurring under majority ownership established through an earlier transaction. In April 2018, Montenegro’s power utility EPCG announced a takeover bid for all shares in Pljevlja coal mine—5,064,443 shares—with an offer period running from 20 April to 4 May and a proposed price of €6.4 per share.

Deloitte’s analysis cited that while the share price was €6.9 at the end of 2017, fair valuation was assessed at €6.4 per share. After a decision by the Capital Market Commission in early June, EPCG became the majority owner and completed the acquisition process to secure control over the company.

For investors watching Montenegro’s energy-linked industrial assets, Pljevlja’s 2025 figures highlight a straightforward risk: even with a growing asset base and substantial retained earnings, profitability can deteriorate rapidly when top-line revenue declines and operating costs rise.