In 9M 2022, Transgaz recorded an operating revenue increase of 16.1% YoY, an EBITDA increase of 29.5%, and a net profit to majority of RON 269.7m, an increase of 155% YoY.
Operating revenue during this period amounted to RON 1.11bn, an increase of 16.1%, or RON 154.1m. The revenue growth was influenced by several factors. First of all, the revenue from capacity booking was RON 190.9m higher. This came as a result of higher revenue from an auction premium of RON 129.9m, following the capacity booking auctions performed according to the CAM-NC by interconnection points. Furthermore, revenue from the auction premium on 30 September 2021 amounted to RON 13m, while on 30 September 2022, it amounted to RON 142.9m. On the other hand, booking capacity was lower by 15.9m MWh, which decreased revenue by RON 34.9m. Capacity booking tariff was higher by RON 0.35/MWh, which had a RON 95.9m positive impact on revenue. On the other hand, commodity revenue was down by RON 48.9m, due to lower gas transmitted capacities (-8%). Other operating revenue also recorded an increase of RON 23.5m, mainly due to grants obtained for the financing of major investment projects following their completion and commissioning, which was higher by RON 24.8m.
Operating costs increased by 15%, or RON 130.1m, to RON 1.01bn. Of this, depreciation increased the most, by 30% to RON 324.5m, due to the completion and commissioning of major investment projects. Employee costs increased by RON 12.1m to RON 333.9m, mainly as a result of higher salaries and benefits. Transmission system gas consumption cost increased OPEX by RON 56.8m, mainly due to the average purchase price being higher by RON 88.5/MWh compared to the same period last year, with a negative influence of RON 53.2m.
As the revenue grew faster than the costs, the Company recorded an EBITDA of RON 421.8m, an increase of 29.5% YoY. This would imply an EBITDA margin of 38%, an increase of 3.9 p.p. YoY. Financial income increased by almost 2.8x to RON 371.2m. This was mainly due to the update of the value of regulated assets with the inflation rate for 9M 2022, and revenue from shareholdings recorded following the reduction in Eurotransgaz’s share capital of EUR 13.2m, which was received in Q1 2022. Meanwhile, financial cost increased by over 4.2x to RON 143.8m, mainly based on the cost of financial fixed assets transferred. This would also mean that the net financial result amounted to RON 227.5m, an increase of over 2.3x YoY.
Due to the positive revenue and profitability developments described above, the net income to majority amounted to RON 269.7m, an increase of 155% YoY. This would also mean that the net profit margin improved significantly, by 13.3 p.p. to 24.3%.
Transgaz key financials (9M 2022 vs. 9M 2021, RONm)
Source: Transgaz, InterCapital Research
