Driving Innovation and Sustainable Growth in Serbia’s Energy Sector
In this interview, Neven Savić, Chief Financial Officer of Energotehnika Južna Bačka and Elektromontaža Kraljevo, shares insights into the companies’ strategic role in Serbia’s energy market. He discusses the transformative impact of MVM’s investment, the companies’ leadership in green and sustainable projects, and ambitious plans for future growth, both locally and within the broader European market.
Just over two years ago, the Serbian energy market resounded with the news that MVM, Hungary’s national electricity and gas company, had acquired a minority stake in two private Serbian companies, Energotehnika Južna Bačka and Elektromontaža from Kraljevo. From today’s perspective, how do you assess that business move?
When I was appointed in 2022 by MVM as the Chief Financial Officer for these companies, I saw it as a logical and standard business decision. However, today, I can confidently call that move revolutionary. By acquiring equity in Serbian companies that are leaders, primarily in the expertise they possess, MVM, to use sports terminology, secured a “season ticket” for the best seat on the Serbian energy market stage. When I say expertise, I don’t only mean technological expertise, which is undoubtedly present, but also expertise in managing capital projects, organizing such companies, and their readiness to actively participate in reshaping the structure and image of Serbia’s energy sector.
MVM is one of the largest companies in Central Europe, involved in producing, transporting, and distributing, primarily, electricity and gas. The synergy it will achieve with Serbian companies is beyond question.
What primarily defines the leadership position of your companies in the Serbian market?
Thanks to the continuous growth of the Serbian economy in recent years, the state of Serbia has reached a position where it can finance much-needed investments in modernizing energy and utility infrastructure. Considering that such significant projects require, above all, the aforementioned expertise, we see our opportunity here and are building our market position.
I am convinced that a great asset for Serbia is having companies like Energotehnika Južna Bačka and Elektromontaža from Kraljevo, which can successfully execute such complex projects. These companies have a proven track record of successfully completed and ongoing projects, where, as leaders, we have managed to bring together technology providers, major global companies, and predominantly Serbian contractors.
MVM, by acquiring equity in leading Serbian companies, secured a ‘season ticket’ for the best seat on the Serbian energy market stage
Moreover, these are not just projects directly related to energy infrastructure but also those that contribute to broader societal benefits, such as ecology, mining, and utility infrastructure. We are pioneers in constructing cogeneration plants, and we will showcase the peak of our capabilities by building a trigeneration plant for the “EXPO Serbia” project, bringing technology that only a few countries in Europe can boast.
Among the many large projects we manage, I will highlight just a few: the “Flue Gas Desulfurization at TENT-B,” the “Ash Handling System at TENT-A,” and the “Construction of the BTO System at the Kolubara Basin in Radljevo.” Together with major global companies, we are reshaping Serbia’s future toward sustainable development.
How do you assess the performance of Energotehnika Južna Bačka and Elektromontaža Kraljevo from the perspective of a CFO?
Leading projects of this scale requires not only expertise and strong references but also exceptional financial capacity, which often serves as a decisive factor. Companies lacking this capacity are frequently excluded, giving us a significant competitive edge. Over the past two and a half years, I am proud to say we have greatly enhanced our financial capacity, allowing us to confidently participate in high-value projects.
It is a true privilege to be part of the management of such distinguished companies. I view my role as CFO beyond the traditional scope, aiming to understand the broader business landscape, anticipate potential limitations, and address challenges proactively before they emerge. I also focus on fostering positive energy within the organization, investing in my team, and continuously improving their skills and performance.
I am fortunate to work alongside a management team that shares common values and ambitions. Together, we consistently push boundaries and explore new opportunities. The record revenue growth and EBITDA we are set to achieve this year are a testament to our success. I am confident we have set the bar high, but I also see that my colleagues are capable of achieving great things, making this ambition entirely attainable.
What are your projections for the future of your companies?
First and foremost, we anticipate that MVM will acquire majority ownership of the companies next year. We are confident this will give us a new dimension in the market. The transfer of knowledge and technologies from a company of MVM’s scale positions us well to consider and pursue entry into the EU market through Hungary. We have already successfully completed some projects in Hungary, demonstrating our potential.
We are pioneers in constructing cogeneration plants and will demonstrate our full capabilities with the trigeneration plant for the ‘EXPO Serbia’ project
Meanwhile, in Serbia, the investment cycle will continue, particularly with the “Green Transition” in the energy sector and many other initiatives we eagerly anticipate. Currently, there are no companies on the Serbian market better prepared than us to execute such projects, and we look forward to embracing these new challenges.