Romania's Romgaz improves its profit despite 20% lower incomes in H1

Romania's natural gas company Romgaz announced its net profit rose by 9% y/y to RON 1.84 billion (EUR 370 million) even if its turnover dropped by 20.4% y/y to RON 3.9 billion (EUR 780 million) in H1.

The good result was due to the phasing off of the solidarity contribution charged by the state, after January 1, 2024. Romgaz paid RON971mn solidarity contribution in the first half of 2023.

Natural gas production obtained in the first semester of 2024 was 2,486.9 million cubic meters, up 4.3% compared to the same period of 2023, but the quantity actually delivered decreased by 4.2%.

However, the 24.1% y/y lower revenues from the sale of natural gas to RON3.25 billion were caused by the lower average price realized.

"Starting with April 1, 2024, the prices of gas sold under the Government's emergency ordinance (OUG) 27/2022 -to households or for heating producers having households as customers] decreased by 20%, from RON150 per MWh to RON120 MWh. Of the total quantity delivered, deliveries under the OUG 27 represent 65.1%," according to the company's report.

The turnover from the sale of electricity also recorded a decrease of 10%, to RON 180.3 million, also caused by the lower sales prices. Under OUG 27/2022, the regulated prices decreased by 11.1%, from RON450 per MWh to RON400 per MWh.

(Photo: Inquam/ Adel al Haddad)