Recent financial disclosures from the Montenegro Stock Exchange have unveiled a stark contrast in the performance of state-controlled enterprises in 2025. While companies in the tourism and agriculture sectors are showing signs of recovery, the energy sector is grappling with significant losses due to an extended shutdown of coal-fired power generation facilities.
Among the notable performers is the rehabilitation sector, particularly Institut Simo Milošević, which reported a net profit of approximately €6.5 million, marking its second consecutive year of profitability after enduring a prolonged period of financial difficulties. The firm’s revenues surged to around €15.8 million, bolstered by increased patient volumes and favorable reimbursement agreements with Montenegro’s Health Insurance Fund. Additionally, the sale of a former children’s department building contributed extraordinary income, as the state plans to transform the site into a new educational facility in Igalo.
This turnaround has significantly diminished historical losses for Institut Simo Milošević, which decreased from roughly €29 million to about €21.7 million, suggesting that recent restructuring efforts are beginning to yield positive results.
Similarly, Plantaže, a wine producer that has faced numerous challenges in past years, has also reported profitability for the second year running while actively reducing its debt load. This recovery is particularly noteworthy given that only a few years prior, the company faced scrutiny from state auditors over governance issues and was placed under enhanced market supervision.
In stark contrast, Montenegro’s energy sector experienced one of its most challenging financial years recently. The state utility Elektroprivreda Crne Gore (EPCG) recorded a net loss of approximately €92 million, largely attributed to an eight-month shutdown of its coal-fired thermal power plant for reconstruction. This disruption necessitated importing around 1,341 GWh of electricity at market prices exceeding regulated domestic tariffs, costing approximately €142 million.
EPCG’s total revenues fell to around €397 million, while operating expenses escalated to about €466 million, driven by high-cost electricity imports. This financial strain wiped out previously accumulated retained earnings and resulted in negative accumulated equity by year-end.
However, preliminary figures from the first quarter of 2026 indicate a swift recovery for EPCG, which returned to profitability with approximately €36.4 million in net income following the restart of its thermal power plant and improved hydrological conditions. This rebound effectively countered last year’s accumulated deficit and restored positive retained earnings.
The coal producer Rudnik uglja Pljevlja also felt the impact of the thermal plant outage, highlighting the interconnectedness between Montenegro’s coal mining and power generation sectors. Together, EPCG and Rudnik uglja Pljevlja incurred combined losses nearing €100 million during the year.
<pConversely, Crnogorski elektroprenosni sistem, the grid operator, reported profits of approximately €21 million, although this figure was lower than previous years due to reduced transmission-related tariff components set by the energy regulator for the 2025–2026 regulatory period.
The tourism sector displayed mixed results; Ulcinjska rivijera saw modest improvements in profitability driven by operations at Ada Bojana, whereas Budvanska rivijera faced a significant decline in earnings as tourism revenues softened compared to an exceptionally strong prior year.
The overall financial reports underscore a pronounced structural divide within Montenegro’s state-owned enterprises. While tourism-linked entities and those undergoing financial restructuring are gradually stabilizing after years of fiscal pressure, the energy sector remains vulnerable due to risks associated with generation concentration, hydrological fluctuations, and the costs associated with aging thermal infrastructure amid a slow transition towards a more diversified energy mix.
