Montenegro’s state-owned power utility EPCG Group recorded a consolidated net profit of €19.3 million in the first half of 2026, reversing a loss of €30.5 million in the corresponding period of 2025, while its debt and declining cash reserves remain relevant to its investment capacity. The improvement of nearly €50 million came as consolidated revenue decreased to approximately €213 million, while total assets rose by around €70 million to €1.56 billion.
EPCG’s financial position reflects the challenges of entering a capital-intensive investment cycle focused on expanding renewable generation, energy storage and electricity production capacity. The group’s outstanding loans totalled approximately €304 million, including around €82 million in short-term borrowing. Cash holdings stood at approximately €24.5 million, about €12 million below the level recorded a year earlier. The combination of higher profitability and reduced cash reserves is relevant to the financing of EPCG’s planned investment programme.
The utility is expanding renewable electricity generation through projects such as the Gvozd wind farm and is considering further investments in solar power, battery storage and energy security. It has also opened discussions with international financial institutions regarding financing for future projects. The Pljevlja coal mine, which supplies Montenegro’s main thermal power plant, also improved its financial performance. The mine recorded a profit of approximately €3.2 million, compared with a loss of €4.5 million in the same period of 2025.
Stronger earnings provide EPCG with greater capacity to contribute equity to new projects and support additional borrowing. The existing debt burden means future investments will require financing arrangements combining internal cash resources, commercial borrowing and lending from international financial institutions. The company’s financial recovery therefore coincides with the need to finance the diversification of Montenegro’s electricity system while managing its existing debt obligations and available liquidity.
