Romania's Romgaz revises down by 20% wholesale contract with Engie

Natural gas producer and supplier Romgaz (BVB: SNG) announced on July 10, in a note to investors, that the company has amended a sales-purchase agreement with Engie Romania, the largest gas distributor in Romania, as a result of the decrease in energy prices.

Following the change in the legislative framework (the price capping mechanism for residential end users), the contract changed from RON 150 per MWh to RON 120 per MWh, meaning a 20% decrease. Thus, the value of the agreement dropped from RON 289.4 million to RON 233 million, according to the note to investors.

Romgaz has budgeted for 2024 total revenues of RON 7.65 billion, down 9% from the company's initial estimates. The targeted gross profit is RON 2.34 billion, 22% less than this year's first budget planning.

In Q1/2024, the group posted a net profit of RON 1.2 billion, 28% up y/y. The turnover decreased by 22% y/y to RON 2.3 billion.

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