The company’s revised budget was approved by the government, its majority shareholder, last week, Romgaz said in a report to the Bucharest Stock Exchange Monday. The company has called a shareholders’ meeting for December 17 to approve the revised budget.
Romgaz has revised its estimated total revenues down to RON4.46 billion from RON4.64 billion expected in June, and expects higher expenses, of RON3.11 billion, instead of RON2.78 billion expected in June.
Following weaker than expected third quarter results, when its net profit declined 14% compared to the same period last year, the company has revised down its 2015 budget and lowered its net profit estimate to RON1 billion from RON1.5 billion expected previously,” Banca Transilvania said in a note to analysts and investors.
In the third quarter, Romgaz had a turnover of RON698 million, down 8.2% on the year, and a net profit of RON208.7 million, down 14%, as domestic natural gas consumption has been declining for several years.
For the first nine months, Romgaz reported a 12.4% drop in net profit, to RON975.3 million, and a 10.8% drop in sales, to RON2.93 billion.
Romgaz is 70%-owned by the Romanian state and its second biggest shareholder is property restitution fund Fondul Proprietatea, which owns 6.18%.