In spite of higher turnover, Romgaz's profit fell by 17 percent last year

In its probably most important year, given the successfully run IPO last fall, Romgaz recorded a lower profit compared to 2012, although the turnover has advanced.

Romania’s largest gas producer and supplier has released the preliminary financial report for the past year which shows a negative evolution compared to 2012 in terms of profit, which dropped by almost 17 percent to 930.7 million lei. Yet the company’s turnover was higher – nearly 3.9 billion lei lei, up 1.5 percent over 2012.

“Although the price of natural gas from domestic production increased by 15 percent compared to the delivery price in the previous year, the company’s turnover grew by only 1.5 percent because of lower delivery of domestic and imported gas”, is explained by the report. The drop in the amount of imported gas delivered was caused, besides a lower demand in gas consumption, by an ANRE’s decision which removes the obligation of delivering a mix of domestic and imported gas the producers previously had.

Last year, Romgaz spent some 850 million lei with investments, some 63 percent more than in 2012 – there have been made refurbishment and modernization works, as well as exploration campaigns mostly in Transilvania region.

Also the gas production has been stabilized - “the average daily production recorded has been marginally higher than in 2012 and for the 2011-2013 time frame, the annual decline in production was zero”, as per the same report.

Romgaz produced in 2013 about 5.65 billion cubic meters of natural gas, having a market share of 50.5 percent in terms of sales of natural gas from domestic production. The company’s main activity involves the exploration and production of natural gas, the supply of natural gas or the storage in underground depositories and electricity production.