In 2019, Romgaz recorded an increase in sales of 1.5%, increase in EBITDA of 14.3% and an increase in net profit of 4.6%.
As Romgaz Published their preliminary 2019 results, we are bringing you key takes from it. In 2019, the gas production amounted 5,276.9m m3, representing a decrease of 1.06% YoY, while the amount is 1.37% lower than budgeted.
In 2019, Romgaz estimates a consolidated revenue of RON 5.08bn, representing an increase of 1.52%. The increase came on the back of a 4.4% rise of revenue from sales of gas produced by Romgaz and of gas purchased for resale as well as gas from joint ventures, an increase by 11% of revenue from storage services and an increase by 115.7% of revenue from gas condensate sale, despite the decrease of revenue from electricity sales by 50.95%.
Meanwhile, cost of commodities sold decreased by 56%, amounting to RON 107.8m. The decrease could mainly be attributed to the lower gas quantity purchased from import for resale by 70.8%.
In 2019, the Group recorded net impairment losses of receivables estimated at RON 116.7m compared to RON 19.94m in 2018. Such an increase arose due to the risk of non-collecting some receivables from insolvent clients. The Group notes that they were forced by decisions of the courts to deliver gas to such customers considered ”captive” by the insolvency law. Subsequent to the issuance of these decisions, the Group did not record any additional outstanding receivables from these customers, but, according to IFRS, it recorded adjustments for the impairment of the receivables according to the estimated risk of non-collection. Therefore, for receivables uncollected in due date, the Group recorded a net impairment of RON 34.08m, and from the analysis of non-collection risk of current receivables, an impairment of RON 82.67m. In case of the risk of non-collection does not materialize in 2020, the amount of RON 82.67m shall be released to income.
Going further down the P&L, Romgaz recorded RON 80m of changes in inventory, compared to RON -32.2m in 2018, as the gas quantity injected in storages was higher than the quantity withdrawn from storages.
EBITDA in 2019, amounted to RON 2.56bn, representing an increase of 14.3%. Such a result puts the EBITDA margin at 50.37% (+5.61 p.p. YoY). Meanwhile, operating profit amounted to RON 1.65bn, representing an increase of 7.51% YoY.
In 2019, Romgaz recorded a net profit of 1.43bn, representing an increase of 4.55%, which puts the net profit margin at 28.1% (+0.8 p.p).
