Romgaz, which is controlled by the Romanian state through the Economy Ministry, last year reached a net profit of RON1.24 billion, up from RON1 billion in 2011.
The company’s turnover for 2012 is not yet available, but if the first-half growth rate has been kept, Romgaz’s revenues might have exceeded the one billion-euro mark.
According to data centralized by Ziarul Financiar last year, Romgaz is the second most valuable company in Romania, with a value of over EUR3 billion.
If you add together all the profits recorded last year by the leading state-run companies operating in the energy sector, such as Transgaz, Hidroelectrica, Nuclearelectrica, Transelectrica, Electrica and Complexul Energetic Oltenia, the amount barely covers the profit reported by Romgaz, which accounts for over 50% of Romania’s gas production.
The data was published by Romanian investment fund Fondul Proprietatea, the minority shareholder of Romgaz. The latest financial results published by the state-run company are for the first half of last year and feature on the company’s website.
In the first six months of last year the company reached a turnover of RON2.2 billion (EUR500.5 million), 10% higher than in the first half of 2011 and a net profit of RON557.7 million (EUR127 million). The state-run company had a net profit margin of 25%, a good level compared with other state-run companies, as well as with private companies.
The company is in the process of listing a 10% stake on the stock exchange, which is why Romgaz representatives have not commented on the financial results.
The company’s record-high net profit comes at a time when the recommended price for natural gas production remained almost steady over the course of last year, at around RON494 per thousand cubic meters.
According to data sent by Transgaz, last year natural gas consumption at national level fell by around 4% to 13.6 million cubic meters, 24.3% of which were imports.
So market conditions would not justify the net profit rise, which means that a good portion of the rise could be explained through internal measures.
For instance the report for the first half of the year reveals a decline in raw material spending and in spending on external services, while personnel spending went up by around 10%.
On the other hand, financial revenues had risen by almost 60% during that period, to RON63 million.
The Ministry of the Economy holds 85% in Romgaz, while Fondul Proprietatea holds 15%.
(English version by Daniela Stoican)