The Pljevlja Coal Mine ended 2024 with a net profit of 15 million euros, which is at the level of the results from 2023, but also seven million more than planned.
The company, owned by the state-owned Elektroprivreda, had retained earnings from previous years in the amount of 49 million euros at the end of last year.
This is stated in the financial report and balance sheet of the Coal Mine, which was published on the Montenegro Stock Exchange website.
The current year is particularly challenging for the company because their announced customer, Termoelektrana Pljevlja, is closed from April 1st to November 15th due to the completion of reconstruction.
The company's total revenues last year amounted to 65,3 million euros, of which 53,9 million euros were provided from the sale of coal for the needs of the Pljevlja Thermal Power Plant, and 11,4 million euros from the sale of coal to other customers.
Last year, a total of 1,6 million tons of coal were produced, which is 9,7 percent less than planned.
Revenues from coal sales were four million euros lower compared to 2023. Revenues from coal sales for the needs of the Pljevlja Thermal Power Plant were 5,5 percent lower, and revenues from sales on the consumer market were 10,2 percent lower compared to 2023.
Although the delivery of coal for the needs of the thermal power plant was 50 thousand tons lower, revenues were higher than planned by 2,8 million euros because the selling price of a ton of coal increased by 3,27 euros per ton. The report states that last year the average selling price of a ton of coal was 38,27 euros, and in 2023 it was 34,85 euros.
The total expenses of the Coal Mine last year amounted to 57,2 million euros, which is 2023 million euros lower than in 1,67, and 4,4 million euros lower than the plan.
The largest savings of 2,8 million euros were achieved in material costs, which totaled 14,8 million euros. Costs for the purchase of oil and gasoline amounted to eight million euros, which was 412 thousand euros less than in 2023, and 1,2 million euros less than planned.
"During 2024, 34.993 liters of fuel were consumed less than the previous year, which represents a decrease of 0,5 percent, while production results increased by 2,2 percent," the report stated.
Explosives and explosive devices costs amounted to two million euros, which is 338 thousand euros less than in 2023.
Expenses for spare parts amounted to 1,7 million euros, an increase of 377 thousand euros, while expenses for tires amounted to 733 thousand euros, an increase of 406 thousand euros compared to the previous year.
In intangible costs, savings of 1,2 million euros were achieved, of which 800 thousand euros relate to the reduction of property security costs.
Total expenditures for salaries and other personal income last year amounted to 26,3 million euros, which was 280 thousand euros less than in 2023, and 825 thousand euros less than the plan for 2024.
The mine had 1.108 employees in December, which is 77 fewer than in January last year. The number of employees hired through agencies in December was 134, which is 16 fewer than in January.
19 million euros were spent on gross salaries of permanent employees, which is one and a half million less than in 2023 and 1,2 million euros less than the plan for 2024. The average net salary of employees under an employment contract was 1.117 euros.
The net compensation of workers hired through agencies amounted to EUR 919. The Mine's total gross liability on this basis amounted to EUR 1,17 million.
The total cost based on the service contract amounted to 183,8 thousand euros, and as stated, they were 64 percent lower than in 2023 and 26,4 percent lower than planned.
Other operating expenses amounted to 6,68 million euros and are 2,2 million euros lower than in the previous year. In terms of provisioning costs, savings of 931 thousand euros were achieved, research and design costs were reduced by 511 thousand, property security by 508 thousand, maintenance by 295 thousand, variable concession fees by 106 thousand, consulting services by 73 thousand... The environmental fee increased by 261 thousand.
Depreciation costs increased by 6,8 million, from what they amounted to in 2023, to last year's 7,8 million euros.
Losses from sales, expenses, deficits and write-offs increased by 266 thousand euros, while expenses for donations and sponsorships decreased by 194 thousand euros.
For taxes, fees and charges 25,8 million euros
The total difference between income and expenses was 17,74 million euros, and after paying corporate income tax of 2,68 million euros, the remaining net profit or gain was 15.055.989 euros, which is 90,2 percent more than the innovated business plan for 2024.
During 2024, the company paid a total of 25,8 million euros in obligations to the state and local governments, based on various taxes, fees and charges.
The company has no outstanding tax or credit obligations taking into account previous income and expense data, i.e. sublimating financial results.
A challenging year due to the TPP and the relocation of Ćehotina
The Coal Mine previously announced that 2025 will be the most difficult and demanding year for the company and the Montenegrin power system, as they will have a significant reduction in revenue due to the break in the work of their largest customer - Thermal Power Plant, from April 1 to November 15, but also because they must complete the work of relocating the Ćehotina riverbed by the end of the year in order to activate the new mine.
Due to the break in the operation of the TPP, it will have a decrease in revenue of 48 million euros, while at the same time it will have higher expenses because the estimated investment in relocating Ćehotina is 20 million euros.
"We are aware that due to the implementation of two important investment projects that need to be completed this year, the relocation of the Ćehotina riverbed and the ecological reconstruction of the Pljevlja thermal power plant, the year ahead will not be a year of results. The ecological reconstruction of the Pljevlja thermal power plant is planned to last eight months. This will cause 48 million euros less revenue for the Mine due to the suspension of coal deliveries," the company previously told "Vijesti".
This year would not be accompanied by so many challenges, the RU claims, if the project to relocate the Ćehotina riverbed had not been delayed in the previous period, "due to urban planning and technical conditions from 2019, under which the project could not be implemented."
The coal company's management is trying to sell as much coal as possible to other buyers in order to reduce the expected drop in revenue.
They also announced that during this period of reduced revenue, they will not reduce employee salaries.
"During the ecological reconstruction period, stable financing of RUP will be ensured by activating the sale of coal for wide consumption with minimum contracted quantities of 200.000 tons, so we will try to generate as much revenue as possible with other third parties on the market and try to reduce the negative balance. RUP will also sign a four-year coal sales contract with EPCG, which will enable advance withdrawal of funds during the overhaul period, which will be sufficient for stable operations," the company said.
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