Gas price increase boosts profit for Romanian gas producer Romgaz

Romanian gas producer Romgaz Medias (BVB ticker: SNG) posted an 83 percent increase in net profit, in the first quarter of 2014, to RON 608 million (EUR 137 million), according to the company’s quarterly report. Romgaz’s turnover grew by 25 percent, to RON 1.45 billion (EUR 326 million). Both revenues and profits were boosted by the increase in prices for natural gas produced in Romania. Gas quantities delivered by Romgaz from local production were up just 1 percent in the first quarter, but revenues from gas sales grew by 32 percent, to RON 1.1 billion (EUR 247 million). The rest of the company’s revenues come from the gas storing business, from the sale of imported gas and from energy sales. Romgaz is also an energy producer and operates the Iernut gas fired power plant. Romgaz is controlled by the Romanian state, that owns 70 percent of the company. A 15 percent stake is held by Fondul Proprietatea and the remaining 15 percent are held by institutional and retail investors. Romgaz was listed both on the Bucharest Stock Exchange (BVB) and on the London Stock Exchange following an initial public offering (IPO) in October 2013 in which the Romanian Government sold a 15 percent stake in the company for EUR 391 million. The company has a market capitalization of RON 12.7 billion (EUR 2.86 billion). Romgaz' share price was down 5 percent on Wednesday (May 14), which was the ex-dividend date. The company pays a dividend of RON 2.57 per share from last year’s profit, which is 7.4 percent of the share price on Tuesday (RON 34.76). Andrei Chirileasa, andrei@romania-insider.com