Investments should increase to RON1.2 billion and dividends stay flat at more than RON1 billion.
Romgaz expects natural gas production to remain at about the same level as in 2015, 5.56 billion cubic meters. Industrial consumption should decrease again, while household consumption will increase despite the 10% price hike as of July 1.
“The outlook for Romgaz is good. The decline in revenue due to the drop in gas price and investment, which we see in foreign oil and gas companies is not there at Romgaz. Our target price per Romgaz share is RON32.8 before dividends,” said Dana Mandru, analyst with brokerage firm Swiss Capital.
Romgaz is currently trading at RON27, having gained 12% in the past month, but 2% lower primarily because of the aggressive corrections affecting the entire stock market in January. (EUR1=RON4.4586)
(English version by Loredana Fratila-Cristescu)