In Q1, the company recorded an increase in revenues of 15.6%, increase in EBITDA of 26.6% and an increase in net income of 16.3%.

Romgaz published their Q1 2019 Report. According to it, the company recorded an increase in revenue of 15.57%, amounting to RON 1.7bn.

The increase in revenue could be attributed to the rise of the income from natural gas sales by 13.3% both from Romgaz production and the ones purchased in order to be resold and from partnerships. The revenue observed still a high increase, despite the decrease in the income from electricity sales (16.86%) together with the decrease in the income from underground gas storage activity by 28.28% due to the decrease of the underground storage tariffs approved by ANRE applicable starting with 1 April 2018.

When observing the cost of commodities sold, it decreased by 9.65%, amounting to RON 77.3m due to the decrease in gas quantities purchased from import in order to be resold.

In Q1, the largest item of expenses was other expenses, which amounted to RON 501.7m, increasing by RON 144.6m (+40.5%). Such an increase could be attributed to the rise in petroleum royalty by RON 20.8m and the increase of windfall tax by RON 78.3m.

Going further down the P&L, EBITDA amounted to RON 894m, representing an increase of 26.6%. Note that depreciation and impairment increased by RON 106.9m, amounting to RON 263.2m (+68.41%). The increase could be attributed to net impairment of fixed assets amounting to RON 117.7m, as compared to the net gains of RON 9.2m from impairment in Q1 2018.

EBIT amounted to RON 630.8m, increasing by 14.7%.

In Q1, Romgaz observed an increase in net income of 16.3%, amounting to RON 541.8m.

Romgaz Performance (Q1 2019 vs Q1 2018) (RON m)

Turning our attention to investments in Q1, Romgaz Group scheduled investments in the amount of RON 330.2m and carried out investments of RON 188.4m approximately 43% less than scheduled. As compared to the same period in 2018, investments decreased by 56.7%.