The increase in turnover stems from a 17.7% rise of revenue from sales of internal Romgaz produced gas and of gas purchased for resale as well as gas from joint ventures, despite the decrease of revenue from electricity sales (30.62%) and the decrease by 41.08% of revenue from storage services. Such decrease is due to a 26% drop of storage tariffs approved by the Romanian energy regulator ANRE, applied as of April 1, 2018, Romgaz said in its preliminary earnings report.
The company’s investments amounted to RON1.15 billion in 2018, compared with RON781 million in 2017.
It said its 2018 EBITDA remained at a high level of 44.93% related to the revenue despite recording a decrease compared with 2017 when its EBITDA margin adjusted with natural gas excise stood at 52.71%).
Romgaz’ natural gas production was 5.333 billion cubic meters in 2018, 175 million cubic meters higher than in 2017 (+3.39%) and 1.6% higher than budgeted.
Its electricity production decreased 37.48% on year in 2018 due to state-owned Hidroelectrica’s domination of the market, increased demand for natural gas consumption and storage.
Romgaz estimates revenue from electricity sales decreased by 30.6% on year in 2018. According to Transelectrica, its electricity generation market share was 1.83% in 2018 and 2.7% for the fourth quarter of 2018.
Romgaz is 70% state-owned.