Romgaz 2019 net profit up 4.55 pct to 1.43 bln lei

The National Natural Gas Corporation Romgaz reported a 4.55 pct growth in the 2019 preliminary net profit to 1.43 billion lei, and a turnover of 5.08 billion lei, 1.52 percent higher from the year before, shows the annual preliminary consolidated report released by the company.

The turnover increase is the effect of several elements that include the 4.4 percent rise in revenues from the sale of natural gas from the company's own production as well as from the amount of gas purchased for resale, and from associations; the 11 pct increase in revenues from storage services; the 115.7 pct increase in revenues from the sale of natural gas condensate. Revenues from the sale of electricity dropped by 50.95 pct.

The production of natural gas was 5.277 billion cubic meters, by 56.4 million cubic meters less (-1.06 pct) compared to the year before and 1.37 pct lower than the budgeted production.

The group's investments last year dropped to 891.6 million lei from 1.189 billion lei in 2018. The investment achievement rate is 64.67 pct of the budgeted figure. Investments in the new Iernut power plant amounted to 301.4 million lei, compared with 568.9 million lei in 2018.

The estimated net profit margin for 2019 was 28.11 pct, up 2.98 pct from 2018, and the estimated EBIT margin was 32.42 pct (30.61 pct in 2018).

The tax on the additional revenue derived from the deregulation of prices in the natural gas sector increased by 166.1 million lei (30.16 pct) due to a higher average sale price for gas compared to the previous year, although the supplied amount was by 3.4 pct smaller.

The National Natural Gas Corporation Romgaz SA is a Romanian producer and supplier of natural gas whose main activities are the exploration, production, supply and storage of natural gas, as well as the production of electricity.