Electricity company Elektroprivreda Crne Gore (EPCG) reported a loss of 19.2 million euros for the first nine months of 2024, a decline of 130.5% compared to the same period last year, according to its financial report. This result is 82.17 million euros worse than last year, when EPCG posted a profit of 62.97 million euros. The CEO of EPCG is Ivan Bulatović, and the board is led by Milutin Đukanović.
Financial overview of EPCG:
- Decline in revenue: During the first nine months of this year, EPCG achieved revenue from sales of 294 million euros, with additional operating income of 1.14 million euros. Compared to last year, total revenue decreased by 23.89%, or 92.6 million euros.
- Increase in operating costs: Total operating costs, including wages and other personal expenses, amounted to 318 million euros, an increase of 2.42%, or 7.89 million euros, compared to the same period last year.
- Lower energy prices and market conditions: The report indicates that prices on the spot market fell during the first and second quarters (Q1 – 73.46 euros per MWh, Q2 – 75.26 euros per MWh), while in the third quarter, the average achieved price increased to 120.98 euros per MWh. The average price for the first nine months of 2024 was 89.83 euros per MWh, compared to 110.99 euros per MWh in the same period last year.
Exports and imports:
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- Export revenue: Revenue from electricity exports during the first nine months of this year amounted to 65.5 million euros, while the cost of imports (electricity purchases) was 57.29 million euros. In comparison to last year, export revenue is 73.2 million euros lower, while imports are 1.2 million euros lower. The financial balance from exports and imports has decreased by 72 million euros compared to the same period last year.
Reasons for the loss:
- Lower production: The report attributes the loss to lower-than-planned production, which was 7.5% below expectations. Particularly, the production from river flow was lower, achieving only 69% of the planned output. Additionally, market prices significantly impacted the result, with lower prices in the first quarter when EPCG was an exporter and higher prices during the summer months when it was an importer.
Revenue from domestic sales:
- Domestic sales: Revenue from electricity sales to dependent entities in the country reached 21.6 million euros by the end of September, which is 1.31 million euros lower than the same period last year, when it amounted to 22.92 million euros.
- Renewable energy purchases: The cost of electricity purchased from renewable sources was 28.99 million euros by the end of September, down by 15.45 million euros compared to the same period last year when it amounted to 44.44 million euros.
- Coal costs: The cost of coal by the end of September was 39 million euros, which is 4.1 million euros lower compared to the same period last year, when it amounted to 43.1 million euros.
CGES achieves lower profit:
- Profit decline for CGES: The company Crnogorski elektroprenosni sistem (CGES) reported a profit of 17.35 million euros in the first nine months of this year. This marks a decrease of nearly 9 million euros compared to the same period last year, when the company posted a profit of 26.2 million euros. The CEO of CGES is Ivan Asanović, who has held the position since 2021.
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