EPCG’s Q1 2026 profit jumps as Montenegro’s hydropower output beats plan

Montenegro’s state-owned power utility EPCG delivered a strong rebound in the first quarter of 2026, with results driven largely by higher electricity generation and cost reductions. For investors watching the performance of the region’s utilities, the key signal is how much of EPCG’s earnings momentum is tied to hydrology—and how quickly that can translate into revenue and operating leverage.

Profit and operating earnings surge

EPCG said it recorded net profit of €36.5 million for January–March 2026, compared with €10.2 million in the same period last year. Operating profit also improved markedly to €36.8 million, rising from €9.4 million a year earlier.

Sales revenue up as expenses fall

The company reported that revenue from electricity sales increased to €142 million, from €126 million in Q1 2025. At the same time, total operating expenses declined from €110 million to €97 million, while labor costs were slightly lower at €8.1 million.

Hydrological conditions lift generation well above plan

EPCG attributed the improved performance primarily to exceptionally favorable hydrological conditions that pushed electricity production beyond planned levels. Total generation reached 1,204 GWh in the first three months of 2026, exceeding internal projections by 49%.

Hydropower leads the upside across major plants

Hydropower facilities were the main driver of output growth. The 307 MW HPP Perućica produced 493 GWh, surpassing expectations by 48%. The 342 MW HPP Piva generated 323 GWh, or 43% above planned output.

Electricity production also rose at Montenegro’s only thermal power plant, the 225 MW TPP Pljevlja, which produced 385 GWh during the quarter—83% higher than planned output. In addition, EPCG’s small hydropower plants contributed another 2.7 GWh and likewise outperformed expectations.

Taken together, EPCG’s Q1 results show how favorable water conditions can quickly improve both top-line electricity sales and bottom-line profitability through reduced operating costs and higher-than-expected generation volumes.