Higher electricity costs reduced profitability at Messer Tehnogas despite modest revenue growth, with the Serbian industrial-gas producer reporting higher operating expenses and a 21.4% decline in net profit. Consolidated operating revenue reached RSD 11.04 billion (€94 million), approximately 2% above the comparable period.
Operating expenses increased by 5.7% to RSD 8.72 billion, while net profit fell to about RSD 1.9 billion (€16 million). Electricity represented a major cost increase, with power expenditure rising 12.7% to RSD 2.62 billion, compared with RSD 2.33 billion previously.
Electricity costs pressure operating margins
The increase added almost RSD 300 million to Messer Tehnogas’ electricity bill. The cost is significant for the company because manufacturing industrial gases including oxygen, nitrogen and argon requires substantial electricity consumption. Operating profit declined to approximately RSD 2.32 billion, from RSD 2.57 billion, while the EBITDA margin also weakened. Higher impairment expenses on receivables additionally affected net profit, making the decline in earnings larger than the deterioration in underlying operating performance alone.
Cash position remains strong
Despite lower profitability, Messer Tehnogas maintained a strong financial position. Operating cash flow increased to approximately RSD 2.45 billion, while the company held RSD 5.64 billion in cash and about RSD 9.5 billion in short-term financial investments. Total assets amounted to RSD 42.4 billion, compared with approximately RSD 40.15 billion in equity, leaving the company with limited balance-sheet pressure despite the decline in earnings.
Messer’s industrial gases supply sectors including steelmaking, metals, manufacturing, food processing and healthcare, making electricity costs an important operating factor across its production activities.
Ownership structure remains in focus
German parent Messer SE & Co. KGaA owns approximately 85.9% of Messer Tehnogas, while minority shareholders hold roughly 14%. The German parent made unsuccessful attempts to acquire the remaining shares.
Messer Tehnogas shares subsequently drew renewed attention after a sharp increase, although no new takeover offer has been announced. The results leave cost control as a key financial issue alongside continued revenue growth, with higher electricity expenditure putting pressure on margins despite the company’s liquidity and capital position.
