Romania's Romgaz posts 3.4% stronger net profit in H1 on tax, regulatory effects

Romanian natural gas producer Romgaz (BVB: SNG) reported its net profit rose 4.7% y/y to RON 762.7 million (EUR 145 million) in Q2, while turnover fell 6.6% to RON 1.75 billion. Gross profit decreased by 8.3% to RON 796.6 million, while EBITDA fell 13.5% y/y to RON 864.6 million.

The decline in operating profit was partly offset by a 75.9% reduction in profit tax during the quarter.

Gas deliveries in Q2 were 10.2% lower than in Q1, while gas sales turnover fell 17.5% to RON 1.51 billion. Deliveries at regulated prices accounted for 66.8% of total volumes, down from 86.6% in Q2 2025.

Romgaz, Romania's largest natural gas producer, had a market capitalisation of RON 74.0 billion (EUR 14.1 billion) after its shares gained 127% y/y.

In the entire H1, Romgaz reported consolidated net profit of RON 1.74 billion (EUR 332 million), up 3.4% y/y, despite an 8.6% decline in turnover to RON 3.88 billion.

The increase in profit was driven mainly by lower taxation and a positive effect related to amounts owed by the Ministry of Energy under the emergency gas and electricity price-capping mechanism, rather than stronger operating performance.

For H1, income tax expense was 44.5% lower than a year earlier.

The H1 result also benefited from a net positive effect of EUR 123.8 million after Romgaz collected part of the amounts owed by the Ministry of Energy under OUG 27/2022, which introduced measures for capping electricity and gas prices. The company also reversed an impairment adjustment recognised in 2025.

(Photo source: Inquam Photos/Adel Al-Haddad)