Romgaz said its net profit for the first half amounted to 870.9 million lei (almost EUR200 million), compared with RON622.4 million in the same period a year ago.
Total revenue rose 33% to RON2.53 billion, from RON1.9 billion in January-June 2013.
“The increase is due mainly to the increase, in absolute amount, of the revenue from sale of gas from internal production,” Romgaz said in its financial report, adding the boost is owed to both higher quantities and a rise in prices. Revenue from sale of domestic gas rose 46.3%, or RON638 million, to RON2 billion, while revenue from import gas resale went down almost 69% to RON99.9 million.
In the first half, Romgaz sold 3 billion cubic meters of domestically produced gas, Up 11% on the year, while the sale price increased by almost 32%.
Import gas delivery volumes decreased compared with the first half of 2013, due to both reduced demand and regulatory changes. As a result, the cost of commodities sold also fell, by 56%, to RON133 million from RON302 million in January-June 2013.
The natural gas producer said its “other expenses” more than doubled to RON516.3 million (from RON240.9 million) as it incurred higher costs with taxes in the first half of the year.
“This increase is mainly due to the expenses with other duties and taxes, namely the increase of natural gas royalty costs, as a result of natural gas sale price increase; the recording of the tax on special construction in the amount of RON45.3 million; and the introduction starting from February 1, 2013 of the additional tax on the additional revenue (windfall tax) obtained as a result of deregulation of natural gas prices, which determined an increase of costs by RON158.6 million.”
The Romanian Economy Ministry owns 70% in Romgaz, while investment fund Fondul Proprietatea (FP.RO) has a 10% interest in the company. Romgaz is listed on both Bucharest and London stock exchanges, and its shares closed up 0.9% in Bucharest Monday, in a slightly ascending market. (EUR1=RON4.4415)