In the following period, the continuation of the positive trend of good results and continuous business sustainability is expected, the report adds
During the first nine months of this year, the Montenegrin Electric Transmission System (CGES) operated successfully, with financial stability and security, although the company, according to its representatives, was exposed to certain risks.
“During the first nine months, the company was exposed to the risk of changes in the price of electricity, which had a material impact on the financial statements, but without affecting the smooth running of the business, as indicated by the better business results compared to the comparable period last year”, it is stated in management report published on the website of Montenegro Stock Exchange.
“In the coming period, the continuation of the positive trend of good results and continuous business sustainability is expected”, the report adds.
For the first nine months of this year, CGES achieved a net result in the amount of 16.83 million euros, which is 2.85 million more than in the same period last year.
The company’s total revenues amounted to EUR 90.01 million, of which EUR 88.99 million refer to basic sales revenues, and EUR 1.02 million to other revenues.
Compared to the same period last year, revenues are 82.27 percent higher or 40.63 million euros.
Expenditures for the first nine months of this year amounted to 70.27 million euros and are higher than the comparable period by 106.54 percent or 36.25 million.
The CGES stated that the impact of the covid-19 virus on the Montenegrin economy is pronounced, but without a significant impact on the company’s operations and finances.
“Also, from the second half of last year, there was a major disruption in the electricity market, which resulted in an enormous jump in electricity prices.” This fact had a direct impact on the increase in purchase prices of electricity that CGES purchased and will purchase in order to cover losses in the transmission network for this year”, the company noted.
The company announced that the price of electricity on the market in the second half of last year and the first nine months of this year was five times higher than the price that the regulator refused to CGES.
This resulted in an increase in costs at CGES in the first nine months of this year.
“Additionally, the war in Ukraine had the effect of not stabilizing prices on the market, but on the contrary, prices remained at a high level during this year as well.” “On the basis of the above, CGES had higher costs for 7.7 million euros in the first nine months of this year compared to the same period last year”, the report adds, local media writes.