In Q1, the company observed a decrease of 10% YoY in operating revenues, decrease in EBIT of 21.7% and a decrease in net income of 19.1%.

As Transgaz published their Q1 2019 report, we are bringing you key takes from it. According to the report, the company observed a decrease of 10% YoY in operational revenue before the balancing and construction activity, amounting to RON 473m. The decrease in revenue could be attributed partially to the commodity transmission tariff being lower by RON 0.48/MWh, with a negative influence of RON 21.5m.

Operating costs before the balancing and construction activity increased by 2%, amounting to RON 255.7m. The increase in costs could be attributed to an increase in the cost of personnel and the cost of auxiliary material and other material costs. Besides that, other costs observed the highest increase mainly due to the establishing of corrections for the depreciation of the current assets.

Consequently, operating profit observed a decrease of 21.7%, amounting to RON 217.2m.

Going further down the P&L, Transgaz observed an increase in net financial result by RON 6.5m, amounting to RON 11.77m, which came mostly due to foreign exchange gains.

In Q1, Transgaz observed a decrease in net income of 19.1%, amounting to RON 191.4m.

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

When observing the CAPEX of the company, it amounted to RON 154.5m, of which RON 0.375m are NTS connection installations under the NTS access rules approved by ANRE Order 82/2017. Investments amounting to RON 13.8m were commissioned within the period analyzed.