The revenues of Romanian natural gas company Romgaz (BVB: SNG) decreased by one-third (-33%) to RON 9 billion (EUR 1.8 billion) in 2023 compared to 2022, mainly because the company had to sell most of its electricity and natural gas at a regulated price.
The company sold 86.4% of its natural gas production at the regulated price of RON 50/MWh and almost all of its electricity production at the regulated price of RON 450/MWh. The natural gas sales thus plunged by over 30% y/y to RON 7.77 billion, while the electricity sales contracted three-fold to RON 405 million.
On the upside, the decrease of the windfall tax on revenues from natural gas (RON 4 billion) and royalty expenses (RON 1 billion) dragged down expenses by 55% to RON 4.3 billion.
Subsequently, the gross profit rose by 22% y/y to nearly RON 5.1 billion (just over EUR 1 billion).
After the tax, including the solidarity contribution, the shareholders were left with RON 2.8 billion (EUR 560 million) net profit (+10% y/y).
Romgaz has a market capitalization of RON 19.5 billion (EUR 4 billion).
iulian@romania-insider.com
(Photo source: Inquam Photos/Adel Al–Haddad)
