Srbijagas’ 2025 results show profitability gains alongside revenue drop and rising leverage

Serbia’s state-owned gas company Srbijagas delivered a mixed financial picture in 2025: profitability improved while revenues fell materially, and debt continued to climb. The combination points less to operational momentum than to changes in how policy-linked support and accounting effects flow through the company’s statements.

Profit up as revenues contract

According to the latest financial disclosures cited by Forbes Serbia, Srbijagas posted net profit of RSD 9.78bn (€83m) in 2025, up year on year. However, total operating revenues declined to RSD 143.8bn from nearly RSD 182bn in 2024—about a 21% drop.

Subsidy normalization drove the revenue decline

The revenue contraction was primarily attributed to the absence of state subsidies that had previously offset differences connected to gas storage pricing. In 2024, those subsidies amounted to RSD 33.1bn, boosting the prior year’s revenue base.

Improved profitability without a stronger balance sheet

Even with lower revenues, Srbijagas’ profitability rose, suggesting tighter cost management and normalization of accounting effects associated with earlier price distortions. Yet the gains did not translate into a healthier financial position.

Debt rises as liabilities shift toward state-related funding

Total indebtedness reached €785.4m, underscoring ongoing reliance on borrowing and state-backed financing structures. The increase in liabilities was driven mainly by higher obligations toward domestic entities outside the banking sector, which rose from RSD 36.6bn to RSD 57.2bn.

A significant share of that increase was linked to the Public Debt Administration, which channels funds under state guarantees. At the same time, short-term liabilities to domestic banks declined slightly, indicating some restructuring of debt toward state-related financing rather than purely market-based borrowing.

What it means for investors

Taken together, the figures reflect a structural pattern for Srbijagas: lower revenues tied to subsidy normalization, improved reported profitability supported by cost and accounting adjustments, and rising leverage driven by continued dependence on policy-linked liquidity. For investors tracking Serbia’s energy sector, this matters because it frames performance improvements as closely connected to financing mechanisms rather than solely driven by underlying market conditions or operational expansion.