Romanian gas transporter Transgaz posts 37% net profit increase on tariff hikes

Romanian natural gas transporter Transgaz Medias (BVB ticker: TGN) posted a net profit for the first quarter of 2014 of around EUR 55 million, 37 percent higher than in the same quarter last year. The profit increase came from higher revenues as the company benefited from two tariff hikes last year. The tariffs for gas transport in Romania are regulated by the state Regulatory Authority for Energy. Tariffs for the capacity reservation, which do not fluctuate like those for gas transport, grew the most. This is why Trasgaz posted operational revenues of EUR 116 million, 16 percent higher than in the first three months of 2013, although quantities of gas transported were down due to the mild winter and lower industrial gas consumption. Transgaz is one of the most profitable state owned companies in Romania. The state controls a 58.5 percent stake in the company and the remaining 41.5 percent are traded on the Bucharest Stock Exchage (BVB). Transgaz has a market capitalization of EUR 536 million. Andrei Chirileasa, andrei@romania-insider.com