Romanian state gas producer ups profit despite lower production in 2019

Romanian state-controlled gas producer Romgaz increased its net profit by 4.6% last year compared to 2018, to RON 1.43 billion (EUR 300 million), despite lower production and lower deliveries to customers, the company announced in its preliminary financial report.

The average price charged for the natural gas delivered increased in 2019 compared to 2018, pushing up the earnings, the company explained. The company’s turnover edged up by 1.5% to RON 5.08 bln (EUR 1.07 bln).

“The production of natural gas was 5,277 million cubic meters, 1.06% lower than the previous year and also 1.37% lower than the target. The group estimates that, in 2019, it sold 3.4% less natural gas compared to 2008,” according to the company’s report.

The company paid higher taxes but lower royalties.

Romgaz recorded the increase by RON 166.1 mln (30.16%) of the payments related to the tax on the additional income derived as a result of the deregulation of prices in the natural gas sector. On the other hand, in 2019, there was also a decrease of almost 23% in the expenses with the oil royalties (to RON 342.9 mln, from RON 445 mln in 2018), as a result of the decrease in the benchmark price taken used to calculate the royalties.

(Photo source: Facebook/Romgaz)