Romgaz, +15% in consolidated net profit in 2024, to 3.2 billion lei

Romgaz recorded a consolidated net profit of 3.219 billion lei in 2024, almost 15% higher, or 407.32 million lei, compared to the previous year, according to a report submitted to the Bucharest Stock Exchange on Friday.

In 2023, the company had recorded a consolidated net profit of 2.812 billion lei.

According to the cited source, the elimination, starting with 2024, of the solidarity contribution (in the fourth quarter of 2023, it was worth 1.687 billion lei).

In 2024, Romgaz estimates a consolidated turnover of 7.93 billion lei, down 11.9% compared to 2023, when the company’s business was 9 billion lei. ‘The decrease in turnover comes from the 15.23% decrease in revenues from the sale of natural gas and the 7.72% decrease in revenues from the sale of electricity,’ the report states.

Total revenues are lower in 2024 by 1.066 billion lei, down 11.1%, to 8.546 billion lei, as a result of factors such as the 15% decrease in turnover from the sale of natural gas to 6.584 billion lei in 2024, compared to 7.766 billion lei in the previous year, mainly as a result of the decrease in prices. ‘From a quantitative point of view, deliveries were 1.03% higher compared to 2023,’ the report states.

At the same time, the turnover from the sale of electricity also registered a decrease (375.54 million lei in 2024 compared to 406.98 million lei in the previous year), and the turnover from storage services registered an increase of 3.31% (570.46 million lei in 2024, compared to 552.19 million lei in 2023), as a result of the increase in consolidated revenues from capacity booking and those from extraction.

The Group’s revenues come mainly from the activity of natural gas sales, underground natural gas storage services and the production and sale of electricity. At the same time, consolidated revenues from storage services increased by 3.31% in 2024 compared to 2023, increasing by 18.27 million lei.

In terms of volumes, compared to 2023, the Group estimates that in 2024 it sold 1.03% more natural gas (including gas purchased for resale). At the same time, it provided 20.72% more gas extraction services from storages and 17.06% less gas injection services into storages.

As of December 31, 2024, storage capacity was booked at a rate of 105%, compared to 102.81% in 2023. According to the report, Romgaz produced 8.55% less electricity.

According to the report, tax expenses increased by 22.10% in the year ended December 31, 2024 compared to the same period of the previous year.

‘The increase of 330.70 million lei is mainly due to the increase of 311.56 million lei (+35.01%) in the expenses with the tax on additional income, reaching the level of 1,201.36 million lei. Royalty expenses (including the royalty for the storage activity) decreased by 7.75 million lei (-1.29%) compared to the same period of the previous year; in 2024, following the clarifications brought by the legislation regarding the applicability of the increased level of royalties introduced during 2023, the Group recalculated the royalty for the period October 27, 2023-December 31, 2024 at the lower rates mentioned in the concession agreements; as a result, although the production obtained by the Group is higher by 4% compared to 2023, the level of royalties is lower,’ the report states.

Romgaz’s gas stock in storage facilities increased by 25.35% in value terms. In 2024, Romgaz injected 272.1 million cubic meters into the facilities (2023: 93.3 million cubic meters), while the quantity extracted from the facilities and sold into the facilities was 204.9 million cubic meters (2023: 167.2 million cubic meters).