The Montenegrin electricity transmission system operator, CGES, has announced a decrease in its financial performance for the first quarter of 2026. The company reported a net profit of 6 million euros, a notable drop from 7.7 million euros recorded during the same period in 2025. This decline highlights the ongoing challenges faced by the utility sector in the region.
In terms of revenue, CGES achieved net sales of 23.6 million euros in the first three months of 2026, reflecting an 8.9% year-on-year decline. Concurrently, operating expenses saw a marginal increase of 1.2%, reaching 17.3 million euros. This combination of declining sales and rising costs underscores the pressures on the company’s profitability and operational efficiency.
The total assets of CGES decreased by 1.7% compared to the end of 2025, amounting to 369.2 million euros as of March 31, 2026. The company’s retained earnings stood at 125.9 million euros, indicating a buildup of profits over previous fiscal periods, which may provide some buffer against current financial strains.
On the liabilities front, CGES reported long-term liabilities totaling 33.6 million euros, while short-term liabilities reached 20.2 million euros. This financial structure suggests relative stability, albeit with signs of tightening that could impact future operational flexibility.
The ownership structure of CGES is predominantly state-controlled, with the Government of Montenegro holding 55% of shares. Italian transmission operator Terna possesses a significant 22.09% stake, while Serbian transmission system operator EMS also plays a crucial role as a strategic partner within the company’s framework.
EMS has been involved with CGES since late December 2015 when it acquired approximately 10% of shares on the Montenegrin Stock Exchange for around 13.9 million euros. The company subsequently increased its stake by an additional 5% in January 2021, reinforcing regional cooperation in electricity transmission and enhancing strategic ties between neighboring countries.
This financial report from CGES reflects broader trends in the energy sector, where utilities are grappling with fluctuating revenues and escalating costs amid evolving market dynamics and regulatory frameworks in Southeast Europe.
