EPS posts €129m Q1 2026 profit as Serbia pushes power plant upgrades and debt reduction

Elektroprivreda Srbije’s first-quarter results underscore how Serbia’s power sector is balancing earnings momentum with heavy investment and tighter financial management. EPS said it generated €129 million in net profit in Q1 2026, beating both internal forecasts and last year’s comparable period, while pointing to operational stability and cost reductions.

Profit supported by stable generation and restructuring

EPS attributed the strong performance to steady electricity generation, reduced operating costs, and ongoing restructuring measures across its operations. The company also said Serbia maintained uninterrupted electricity supply throughout the quarter despite challenges in the broader European energy market.

Favorable hydrological conditions helped lift hydropower output during the period. On the thermal side, EPS reported that coal production increased by about 2 million tons in 2025—an annual rise of roughly 7%—as it continues to secure upstream fuel availability.

Infrastructure milestones: reliability gains and emissions compliance

Serbian Minister of Mining and Energy Dubravka Đedović Handanović said several key infrastructure milestones were completed during the reporting period. The most significant was the modernization of the pumped-storage hydropower plant HPP Bajina Bašta, described as its first comprehensive overhaul in more than 40 years. EPS said the upgrade is expected to improve system reliability and operational flexibility.

The minister also highlighted completion of the flue gas desulfurization system at TENT B. She characterized it as the largest environmental investment currently underway in the regional energy sector, with expectations that it will reduce emissions and bring the plant into compliance with stricter environmental standards.

Financing discipline: no liquidity loans, lower debt

EPS said it continued operations without relying on liquidity loans or revising its financial plan. It also reported a substantial reduction in total debt of nearly €370 million—about a 25% decline—reflecting improved financial discipline and cash flow generation.

Capital spending remains heavy, with mining a priority

Investment activity stayed robust, with total capital expenditures reaching approximately €450 million over the year. Of that amount, around €384 million was financed from internal resources. EPS further stated that project execution reached 97% of its planned investment program.

In Q1 2026, EPS said its main investment focus remained on mining operations to support long-term coal supply stability. Spending on new mining equipment totaled about €36 million, exceeding the original plan by 37%, signaling continued prioritization of upstream production capacity.