In H1 2023, Romgaz recorded a revenue decrease of 34.7% YoY, an EBITDA increase of 44.8%, and a net profit of RON 1.69bn, a decrease of 2.3% YoY.
In total, the revenue amounted to RON 4.89bn, a decrease of 34.7% YoY. This came as a result of a decrease in the revenue from natural gas sales of 36% YoY, amounting to RON 4.28bn. Breaking this down further, deliveries decreased by 5.5% YoY, and this was under the effect of the obligation imposed by GEO No.27/2022, under which Romgaz had to sell most of the production at a regulated price of 150 RON/MWh. Furthermore, 86.2% of H1 2023 deliveries, i.e. 21.22 TWh were made at regulated prices, compared to 4.23% (1.10 TWh) in H1 2022. Next up, revenue from electricity sales decreased by 59.8% YoY and amounted to RON 200m, as in 2023, Romgaz had to sell almost all electricity produced at 450 RON/MWh. Finally, revenue from storage services increased by 59.8% YoY to RON 287.3m, mainly due to increased capacities booked by clients for natural gas storage.
Moving on, total expenses decreased by 61.8% YoY and amounted to RON 2.1bn. This was due to lower windfall tax for natural gas, which decreased by RON 2.96bn, as well as lower royalty expenses, which decreased by RON 627.1m. Together, this led to an EBITDA increase of 44.8% YoY, amounting to RON 3.16bn. This would also mean that the EBITDA margin amounted to 64.52%, an increase of 35.4 p.p. YoY. Finally, the net profit amounted to RON 1.69bn, a decrease of 2.3% YoY, which came mostly due to the Solidarity Fund Contribution of RON 970.9m, which was introduced at the end of 2022. Due to the profit remaining roughly unchanged, but revenue decreasing significantly, the net profit margin improved by 11.39 p.p. YoY, and amounted to 34.42%.
Romgaz Key financials (H1 2023 vs. H1 2022, RONm)
Source: Romgaz, InterCapital Research
In terms of investments, the Company planned investments of RON 1.97bn, of which RON 936.7m were allocated for the Neptun Deep project. The amount planned excluding the Neptun Deep project in H1 amounted to RON 464.4m, of which RON 268.4m was achieved, representing 57.8% of investments planned for H1 2023, 25.9% of the 2023 investment program, but an increase of 123.9% compared to H1 2022.