Serbia’s EPS posts Q1 profit of EUR 241.6 million but investments lag

Power utility Elektroprivreda Srbije has recorded a profit of RSD 28.3 billion (EUR 241.6 million) for the first quarter of 2024, according to its report on the implementation of the three-year business plan.

The amount is two times higher than planned and 5% than in the same period in 2023, Serbian state-owned joint stock company Elektroprivreda Srbije (EPS) said. It added that the shareholder assembly adopted the report on the implementation of the three-year business plan for the first quarter of 2024.

Of note, the company achieved a record profit of EUR 972.5 million in 2023.

Minister of Mining and Energy Dubravka Đedović Handanović said that in the first quarter EPS achieved stable results in electricity and coal production, in line with the projected volumes. Overburden production, in her words, rose 11%.

Good results in the production of overburden will allow the utility to increase coal output, she stressed, but added that the pace of investments is not as good.

Investments are lagging

Đedović Handanović, who represents the government as the sole member of the assembly, stressed that investments must be accelerated and planning must become more efficient.

The minister added that EPS faces a series of challenges including lower incomes due to cutting electricity prices for businesses, lower water levels, which will affect the hydropower plants during summer, and the current power plant overhauls.

Profit from electricity trading came in at EUR 44 million

It is necessary to further reduce costs in line with the restructuring plan, to contribute to improving efficiency and productivity, in her view.

According to the report, EPS earned EUR 44 million from electricity trading on the free market while power production matched the plan.

In the first three months of 2024, the share of coal-fired power plants in the mix was 60.6% and hydropower plants and renewables accounted for 36.9%, while gas-fired facilities Panonske TE-TO contributed 2.5%, according to the report.