In H1 2022, Romgaz recorded an increase in revenue of 233% YoY, an EBITDA increase of 84%, and a net income of RON 1.72bn, an increase of 126% YoY.
As Romgaz published their H1 2022 results recently, we decided to bring you a brief analysis of the results. During the first half of the year, the gross gas production amounted to 2,515.1 m3, representing a decrease of 0.2% YoY. The high natural gas production was supported by the optimization of gas field exploitation, ongoing rehabilitation projects of main mature gas fields, but also well workover operations at wells with low productivity or inactive wells. In fact, natural gas consumption in Romania amounted to 63.35 TWh, app. 13% lower YoY, of which 18.27 TWh were import gas, and 45.08 TWh was domestic production. Romgaz delivered 27.56 TWh, representing 43.35% of the national consumption and 61.4% of the consumption covered with gas from domestic production. Meanwhile, Romgaz’s electricity production amounted to 544.7 GWh, up by 168% YoY, allowing Romgaz to achieve a market share of 1.95%.
Romgaz’s revenue increased by 233% YoY, and amounted to RON 7.49bn, as a result of higher revenue from gas sales (+240% YoY) and higher revenue from electricity sales (11.6x YoY). At the same time, total expenses also increased, growing by 309% YoY, and amounting to RON 5.55bn. The increase was driven by higher royalty expenses (+400% YoY), as well as the windfall tax (+17x) YoY. Furthermore, an additional tax on revenues from the sale of electricity was introduced in 2022, in the amount of RON 62.8m. As a result of higher revenue growth, the EBITDA was also positively influenced, amounting to RON 2.18bn, an increase of 84% YoY.
Finally, the Company’s net profit amounted to RON 1.73bn, representing an increase of 126% YoY. Investments during H1 2022 amounted to RON 217.7m, which is 55% of the scheduled investments for the H1, without the Neptun Deep project contribution. For 2022, the Company plans RON 5.72bn of investments, out of which 4.82bn will be allocated for Neptun Deep.
Romgaz key financials (H1 2021 vs. H1 2022, RONm)
Moving on to the balance sheet, total assets increased by 31.7% YTD and amounted to RON 14.9bn. This growth was driven by the increase in current assets, which grew by 66.6% YTD. Breaking this down further, in the current assets category, trade receivables increased by 13.9% YTD, mainly as a result of higher prices in 2022. Cash and cash equivalents increased by 79% YTD and amounted to RON 7.17bn. A part of this increase was generated by the cash obtained through the loan contracted for acquiring ExxonMobil Exploration and Production Romania Limited shares. Finally, other assets increased by 739.7% YTD, and amounted to RON 502.7m, as a result of the payment during Q2 2022 of the advance for the acquisition of the above-mentioned shares.
Equity increased by 3.3% YTD, mainly due to higher profit achieved in H1 2022. Liabilities increased by 142% YTD, and amounted to RON 5.59bn, with growth recorded on both the current and non-current liabilities side. Non-current liabilities increased by 133% YTD, as a result of the above-mentioned loan. Current liabilities increased by 146.7% YTD, mainly as a result of higher contract liabilities, current income tax liabilities, and other short-term liabilities.
