It said its revenue fell 15.8% on the year, to RON3.41 billion, due to the negative influence of weather conditions, drastic decrease of gas demand in the key sectors, competition against import gas and unfavorable fiscal framework for competition on the natural gas market.
The cost of commodities sold increased 24% in 2016, due to an increase by 9.8% of the cost of commodity gas sold and the increase by 33% of costs generated by negative imbalances on the electricity balancing market.
In 2016, investment income decreased by 49.9%, to RON22.12 million, compared to RON44.12 million in 2015, driven by the reduction of interest rates of the cash placed in bank deposits and state bonds.
Revenue from natural gas storage activities increased by 3.9% and is estimated at RON345.36 million as a result of selling of a large gas quantity from storage in 2016.
Revenue from electricity sales reached RON336 million, down 5.7% although in January 2016 the nominal production capacity of CTE Iernut was reduced by 25%. The company’s electricity production reached a market share of 2.57%.
Its profitability margins remained on an upward trend, with a net profit margin of 30% and an EBIT margin of 36.9% (as compared to 29.5% and 35.2% respectively for 2015).
Total investments in 2016 stood at RON497.7 million, lower than in 2015, when Romgaz invested RON938 million, following a decrease of investments planned for surface exploration, decrease of investments in joint ventures and postponing some works due to difficulties occurred in the preparatory activity (obtaining lands, approvals, agreements, authorizations) and changes in public procurement legislation.
In the fourth quarter, Romgaz posted a net profit of RON311 million, 42.1% higher than in the same quarter of 2015.