In January-March 2014, the state-owned company posted net profit of RON608.4 million.
The operating revenue declined 5.6% on the year to RON1.28 billion, because of reduced gas demand, especially from the fertilizer production sector, Romgaz said in its quarterly financial report.
“Such decrease led to a reduced gas production and implicitly to lower revenue, operating income and profit than expected,” the report reads.
Earnings before interest and tax, or EBIT, stood at RON665.5 million in the first quarter, down from RON715 million in the same period of 2014. Earnings before interest, tax, depreciation and amortization, or EBITDA, fell 2% year-on-year to RON841.8 million.
“Although the net profit, EBIT and EBITDA are lower as compared to Q1 2014 when the company recorded the best results ever, these values are substantially higher than those recorded in the previous quarter (4Q 2014),” Rongaz also said.
In the first three months of the year, Romgaz invested RON215.9 million, a 15% increase from the planned amount, as the company intensified geological exploration works in search of new reserves.
The gross production of Romgaz reached 1.43 billion cubic meters in the analyzed period, down 1.9% on the year.
Romgaz is listed on both Bucharest and London stock exchanges. The Romanian government controls 70% of the company’s shares.
Tuesday morning, Romgaz shares traded down 1% in Bucharest in a declining market.