The Romgaz Group obtained a net profit of 1.027 billion lei in the first nine months, down from the same period in 2017, amid a rise in expenses due, among other things, to the increase in royalties, according to the company’s financial results .
Operating profit (EBIT) stood at 1.178 billion lei, down 15.7%, while EBITDA was 1.566 billion lei, down by 11.9% compared to similar results recorded in the first three quarters of the year last year.
Between January and September 2018, total revenues were higher by 275.7 million lei, an increase of 8.5%, while total expenditures increased by 25.7%. The gross result is lower by 13.8% compared to the same period of the previous year, reaching 1.218 billion lei, due to increased impact from the royalties (+97 million lei), from increased amount of the additional income tax applicable to income resulting from gas prices deregulation (+ RON 104 million) and the decrease of the storage tariffs approved by ANRE, applied as of April 1, 2018. The decrease of the electricity production due to unfavorable market conditions, as well as the modernization works at Iernut, reduced by 55% the turnover registered on this segment.
The net profit of SNGN Romgaz SA per share is 2.7 lei, 12.9% lower than the one recorded between January and September 2017. According to the company’s officials, Romgaz’ operational and financial performance during the nine months ended 30 September 2018 remain at a high level. Thus, the national consumption of natural gas registered in the first nine months of 2018 a decrease of about 1.84% compared to the same period of the previous year, while Romgaz deliveries remained close to the level of the previous year, only a 0.28% decrease, from 42.91 TWh to 42.79 TWh; in the same period of 2017 deliveries recorded an increase of approximately 35% over the same period of 2016, from 31.86 to 42.91 TWh. As a result, Romgaz market share in the gas supply market in Romania in the first nine months of the year reached 48.96%, being 0.77 pp higher than the share held in the previous period (48.19%).
Natural gas production was 3.922 billion cubic meters, 171 million cubic meters higher than production in the same period of the previous year (+ 4.56%) and 61 million cubic meters higher than planned ( +1.5%). With this production, according to Romgaz’ estimates, Romgaz had a market share of 53.54% of the domestic gas consumption, increasing by 1.77 pp compared to the share held in the previous period (51.77%).
Romgaz’ electricity production was 284.4 GWh, lower than that achieved in the similar period of 2017 (465.8 GWh). With this production, Romgaz holds a market share of 1.89%.
On 30 September 2018, the Romgaz Group registered 6,137 employees while SNGN Romgaz SA had 5,631 employees. As of April 1, 2018, 504 people have ceased work relations with the company, being transferred to Depogaz Subsidiary.