In 2018, CONPET recorded an increase in operating revenues of 1.8%, decrease in EBIT of 21.9% and a decrease in Net Income of 20.1%.

We are bringing you some key takes from CONPET’s 2018 preliminary resutls. According to the report, the company observed an increase in revenues of 2.3% YoY, amounting to RON 385.1m. Of that, transport revenues account for 98.82%, while the rest represents revenues from various activities such as: leases of lands and telecommunication equipment, rail shunting, sale of pipe material, etc.

The company notes that in the operating revenues they recognize monthly reserves from the modernization quota at the level of the amortization of the tangible assets financed therefrom. In 2018, the value of these revenues is of RON 28.8m.

In 2018, total operating revenues amounted to RON 418.4m, which represents an increase of 1.8%.

Operating Revenues (2015 – 2018) (RON m)

When observing operating expenses, they recorded an increase of 7.8%, amounting to RON 353.6m. The increase in the operating expenses was mainly due to increased personnel costs and expenses with the provisions for employee benefits.

EBIT amounted to RON 64.8m, which represents a decrease of 21.9%. Such a decrease could be mainly attributed to the increase in above-mentioned personnel expenses.

Consequently, this led to a decrease in net income of 20.1%, amounting to RON 59.5m.

EBIT & Net Income (2015 – 2018) (RON m)

The total investments in 2018 amounted to RON 69.5m, which represents an increase of 41%. The 2018 Investments Program considered the continuation of the works for the rehabilitation of the major pipelines for the transport of crude oil and rich gas. These were financed from modernization quota RON 63m and other own sources RON 6.4m.