Romgaz posted net profit of 930.7 million lei (EUR210.6 million), versus RON1.12 billion in 2012, according to a preliminary financial report.
The company’s revenue rose slightly to RON3.89 billion in 2013, from RON3.84 billion the year before. “Although the domestic gas price increased by 15% as compared with previous year, the company’s revenue increased only by 1.5% due to the decrease of both domestic and import gas deliveries,” Romgaz said in its report.
Romgaz said its financial results were influenced by the takeover of a gas-fired power plant Iernut in February 2013. While it added RON237.4 million revenues from the electric power sector, the Iernut power plant also contributed to the cost side, mainly through the transportation expenses incurred for gas consumed at the plant.
In 2013, depreciation and amortization expenses increased by RON211.6 million, said Romgaz. “The increase was generated by a net depreciation expense in relation with fixed assets resulting from the takeover of CTE Iernut, and by the depreciation of natural gas exploration and production projects either abandoned or in the process to be abandoned.”
The bottom-line was also hurt by the increased natural gas royalty costs and the introduction, starting from 1 February 2013, of an extra tax on additional revenue obtained as a result of deregulation of natural gas prices, Romgaz added.
It produced 5.65 billion cubic meters of gas, little changed from the 2012 output. In Romania, Romgaz currently operates 3,255 gas producing wells which access 148 commercial fields, as well as 35 exploration wells in 9 exploration blocks. The company is the largest underground gas storage operator in Romania, as it owns and operates six underground gas storages with a total working gas volume of 2.76 billion cubic meters.
Last year, Romgaz listed its shares on both the Bucharest and the London stock exchanges in the largest initial public offering on the Romanian capital market. Thursday in Bucharest, Romgaz traded slightly up in a quiet market. (EUR1=RON4.5144)