Long-time losers among state-owned companies, the Simo Milošević Institute and Plantaže, significantly improved their operations last year to net profits of 6,5 and four million euros, respectively, and had a positive result for the second year in a row. Elektroprivreda and Rudnik uglja had the expected large deficit, together of almost one hundred million, because the Thermal Power Plant had not been operating for more than eight months.
The Montenegrin Electricity Transmission System continued its positive performance with a profit of 21 million euros, but with a slightly weaker result than the year before, which was expected, given that the Regulatory Agency reduced the item they have on their electricity consumption bills for 2025 and 2026.
Ulcinj Riviera, which now only manages the tourist resort on Ada Bojana, had a slightly better result than the year before, 441 thousand, while Budva Riviera had a significant drop, from four million net profit in 2024 to last year's one and a half million, due to a decrease in sales revenue.
Railway Rolling Stock Maintenance (OŽVS) continued to perform poorly, with its accumulated losses approaching the value of the company's assets.
This is stated in the financial reports of these eight joint stock companies majority owned by the state, which were published on the Montenegro Stock Exchange website.
Institute and Plantaže in the black for the second year
The Simo Milošević Institute in Igalo had revenues from its services of 15,8 million euros last year, which is 5,5 million euros more than the year before. The significantly better result was achieved by increasing the number of users, but also by aligning prices with real costs according to the State Health Insurance Fund.
The company also had revenue of 3,77 million euros from the sale of the old children's department building to the state, which will reconstruct it into a new primary school in Igalo. The institute kept operating expenses at around 4,5 million euros, as well as salary costs at 6,1 million, as these expenses were in 2024. The transition to positive operations reduced accumulated losses from previous years from 29 million to 21,7.
The notes to the Institute's financial statements state that the company's recapitalization by the state's largest shareholders and the "Villa Oliva" family was successfully completed at the beginning of this year. Žarko Rakčević, so that at the end of March they paid off all debts, and the remaining money will be used for investment through renovation in stages as stipulated in the restructuring plan.
"Plantaže" had operating income at the previous year's level of around 31 million euros, while other income, which includes sales income, increased from 3,5 million in 2024 to last year's 7,1 million euros.
The best result was achieved in reducing accumulated losses from previous years, from 44 million at the end of 2024 to 38,2 million at the end of 2025. Long-term loan liabilities were reduced from eight to 4,4 million, while total short-term liabilities decreased from 33 to 31,3 million euros for the year.
EPCG and Rudnik in big losses due to TPP overhaul
Last year, Elektroprivreda incurred an operating loss of 92 million euros, and the main reason was that due to the reconstruction of the Thermal Power Plant and an eight-month break in its operation, it had to import 1.341 GWh worth 142 million euros, at prices that were on average more than double the price at which they sold that electricity to consumers in Montenegro.
EPCG's total revenues last year amounted to 397 million euros and were 19 million less than in 2024. Operating expenses, including the purchase of imported electricity, amounted to 466 million euros and were 76 million higher than in 2024. Gross salary costs amounted to 28,5 million and were two and a half million lower than in 2024. EPCG had a net profit of 10,9 million euros in 2024.
The loss last year caused the accumulated profit from previous years of 72,7 million euros to melt away, resulting in an accumulated loss of 19,3 million euros at the end of the year.
EPCG also published a report on its business operations in the first quarter of this year on the stock exchange website, in which it achieved a profit of 36,4 million euros due to the return to operation of the Thermal Power Plant and a good hydrological period. This smoothed out the accumulated loss from the previous year, so at the end of March the company had a positive accumulated profit of 18 million euros.
The Pljevlja Coal Mine, also due to the reconstruction of the Thermal Power Plant, had no one to sell coal to for the most part of the year, so it incurred an expected operating loss of 6,8 million euros. Last year, the Mine also had a large investment to relocate the Ćehotina River from the area where the new mine will be opened.
The Mine's total revenue was 32 million euros, while in 2024, when the power plant operated for ten months, it generated 65 million euros. Operating expenses were kept at 29,7 million euros, while salary expenses were reduced by two million to 24,4 million euros.
The mine survived the previous year due to significant accumulated profit from previous years of 51,6 million, which was reduced to 44,8 million euros by last year's loss.
OŽVS is sinking while waiting for the merger with ŽPCG
Railway Rolling Stock Maintenance (OŽVS), one of the four companies created by the division of the unified Railways of Montenegro, deteriorated its business last year as a net loss of 1,01 million euros was recorded, 220 thousand euros worse than in 2024.
Total revenues amounted to 2,29 million euros, while the cost of salaries alone amounted to 2,33 million, and operating expenses amounted to another 550 thousand euros. They also had financial expenses of 544 thousand euros.
The government, as the majority owner, has been planning to merge OŽVS with Željeznički prevoz for two years in order to reduce overall costs. The contract to that effect was signed in October last year.
OŽVS's accumulated loss at the end of last year amounted to 10,1 million euros, while the total value of the company's assets was 16,2 million euros.
CGES's profit reduced due to regulatory measures and the start of CBAM
CGES made a net profit of 21 million euros last year, down from 24,8 million euros the year before. The reason was that the Energy Regulatory Agency reduced their electricity bill by 9,5 million in 2025.
The company had operating income of 93,3 million euros last year, which is 4,3 million less than the year before. Operating expenses increased by one million to 59,4 million, while salary expenses decreased by half a million to 9,6 million.
CGES's accumulated profit grew to 119,9 million euros. According to previous decisions, the regulatory agency obliged CGES to return the excess revenue it generates from charging for the use of the underwater energy cable for Italy to domestic consumers, so that next year it will have an additional reduction in the item on its electricity bills, and thus in its revenue.
The company also published a business report for the first three months of this year on the stock exchange website, when it achieved a net profit of 5,9 million euros, while in the same period last year it had a profit of 7,7 million euros.
In the notes to the report for the first quarter of this year, CGES states that the introduction of CBAM (a special tax on electricity from thermal power plants) in this period led to a decrease in the use of so-called cross-border capacities (the use of Montenegrin transmission lines for electricity transport), which is why they had a drop in revenue.
"The application of this mechanism will reduce the demand for cross-border capacities during the year, i.e. reduce CGES's revenues from cross-border capacity allocation, which will consequently negatively affect the company's profitability in 2026, however, without jeopardizing the company's sustainable business results and financial stability," the explanation states.
Budvanska had a decrease in sales revenue of 2,4 million
The Budvanska Rivijera Hotel Group, the largest hotel company in Montenegro, achieved a net profit of 1,49 million last year, which is a significantly worse result than in 2024, when it had a profit of 3,98 million euros.
Operating income from hotel and related services amounted to 22,4 million euros, which was 2,4 million less than in 2024.
The company's other revenues amounted to 7,2 million, while in 2024 they were 2,5 million. Part of these revenues is only an accounting item due to the takeover of part of the "Cristal Riviera" hotel in Petrovac, i.e. the end of a decade-long dispute.
Operating expenses amounted to 13,7 million and were 350 thousand higher than in 2024, while the cost of gross wages increased from 9,2 to 9,5 million.
According to cash flow data, "Budvanska" took out a loan of 9,7 million euros last year for investment purposes.
Ulcinj Riviera had a profit of 441 thousand euros last year, which is a better result than in 2024, when the profit was 308 thousand.
Total income amounted to 2,26 million, which was 300 thousand higher than the year before, while other income was 600 thousand. Operating expenses were 1,1 million, and salary expenses were 1,13 million.
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