Romgaz Net Profit Grows 4.5% in 2019, to RON1.43B

Romania's state-owned natural gas producer Romgaz Medias (SNG.RO) on Tuesday said its consolidated turnover grew 1.5% on the year in 2019, to RON5.1 billion, and its net profit grew 4.5%, to RON1.43 billion.

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Imaginea articolului Romgaz Net Profit Grows 4.5% in 2019, to RON1.43B

Romgaz Net Profit Grows 4.5% in 2019, to RON1.43B

Revenue growth was driven by a 4.4% increase in of revenue from sales of gas produced by Romgaz and of gas purchased for resale as well as gas from joint ventures, an increase by 11% of revenue from storage services and an increase by 115.7% of revenue from gas condensate sale, despite a drop of nearly 60% in electricity sales, the company said in its preliminary earnings report.

In terms of quantities, Romgaz estimates that in 2019 it sold 3.4% less gas than in 2018 and produced 50% less electricity due to works on the Iernut power plant.

Its estimated net profit margin stood at 28.11%, up 2.98%, and its EBITDA margin stayed at 50.37%.

Exploration expenses dropped 90%, to RON24.6 million, while staff expenses grew 8%, to RON670 million.

Romgaz recorded net impairment losses of RON391.3 million in 2019 due to the abandonment of certain investment projects in wells (RON250.3 million, of which RON55.9 million related to Trinity-1X Well from EX 30 Trident Block in the Black Sea); some insignificant recent investments in projects started in previous years (RON88.9 million); and a net adjustment of RON20.5 million pursuant to a gas field impairment testing conducted in December 2019.

Romgaz made investments of RON891.6 million in2 019, compared with RON1.8 billion in 2018. The company invested RON301.4 million in its electric power plant in Iernut, compared with RON568.9 million invested in 2018.

Romgaz is 70% owned by the Romanian state.

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