EPCG swings to a €92.1m loss in 2025 as TPP Pljevlja remains offline for months

Montenegro’s state-owned electricity utility EPCG delivered a sharp financial reversal in 2025, turning last year’s profit into a net loss as its main thermal power plant spent much of the year offline. For investors and lenders, the result underscores how prolonged generation disruption can quickly translate into both weaker revenue and higher operating costs.

Losses driven by extended outage at TPP Pljevlja

EPCG ended 2025 with a net loss of €92.1 million, compared with an €11 million profit in 2024. The company said the primary driver was an eight-month outage at TPP Pljevlja, during which environmental modernization works were carried out.

Revenue falls while expenses rise

The financial deterioration reflected a combination of softer sales and cost inflation. Sales revenues fell to €397.4 million, which was more than €20 million below the prior year’s level. At the same time, operating expenses increased to €466.1 million—up roughly €75 million year-on-year.

Personnel costs edged slightly lower to €28.5 million, and the average number of employees decreased to 1,170, suggesting that the cost pressure came more from other expense lines than from labor.

Balance-sheet buffers, but accumulated losses remain

While EPCG’s retained earnings provided some support—about €72 million carried into 2025—the company still reported accumulated losses of €19.3 million at year-end. This indicates that reserves helped cushion equity impact but did not fully offset the scale of the operational hit.

Investments lift fixed assets

On the asset side, EPCG expanded its long-term infrastructure base. Total fixed assets rose to €1.173 billion, up around €75 million from the previous year, reflecting ongoing investments and capitalized projects within its energy system.

Overall, EPCG’s 2025 performance was shaped by an extended disruption at TPP Pljevlja alongside rising costs—an outcome that fully reversed profitability despite continued investment activity.