In 9M 2019, Romgaz observed an increase in sales of 10.1%, increase in EBITDA of 25% and an increase in net profit of 18.9%.
As Romgaz published their nine-month results of 2019, we are bringing you key takes from the report. According to it, estimations show that national gas consumption decreased by 5.7% YoY, while Romgaz deliveries, consisting of deliveries to customers, CET Iernut consumption and technological consumption, decreased by 5.4% YoY The market share of the company (representing the participation of deliveries from the Company’s internal production to the domestic natural gas national consumption) increased by 7% YoY, and currently stands at 59%.
Natural gas production was 3.95bn m3, representing a slight increase of 0.7%, while the result is 0.3% lower than planned. Electricity production amounted to 92.11 GWh, lower than in the same period of 2018 (750.65 GWh). With this production, Romgaz has a 0.66% market share.
When observing the company’s P&L, Romgaz recorded a 10.1% increase in revenues amounting to RON 3.44bn. Such an increase came on the back of a rise of gas sales, both from internal production and from gas purchased for resale (+12.92%). The cost of commodities sold decreased by 44.68% YoY, amounting to RON 102.3m, mainly due to decreased import and internal gas quantities purchased for resale. Other expenses recorded an increase by 26.28%, amounting to RON 1.18bn. Such an increase could be attributed to mainly the rise by RON 186.4m of expenses with the windfall tax. Royalty expenses decreased by RON 71.0m
In the first nine months of 2019, EBITDA amounted to RON 1.56bn, representing an increase of 25.4%. Such an increase could be attributed to the solid topline performance. Therefore, the Group observed an improvement of the EBITDA margin to 36% (+2.5 p.p. YoY). In the same period, EBT showed a strong increase of 16.95%, amounting to RON 1.4bn, while net profit amounted to RON 1.19bn (+18.92%)
Turning our attention to CAPEX, Romgaz planned for 2019 investments of RON 1.25bn, out of which the amount scheduled for the first 9 months is RON 1.03bn. However, in 9M 2019, the investment value amounted RON 609.8m, of which the most was spent on exploitation drilling works, putting into production of wells, infrastructure and utilities and electric power generation (RON 266.4m).
