REG - S.N.G.N. Romgaz S.A. - 3rd Quarter 2017 Financial Results <Origin Href="QuoteRef">ROSNG.BX</Origin>

Societatea Nationala de Gaze Naturale Romgaz SAAnnouncement

14/11/2017 07:05

RNS Number : 4149W
S.N.G.N. Romgaz S.A.
14 November 2017
QUARTERLY REPORT REGARDING THE ECONOMIC-FINANCIAL ACTIVITY OF S.N.G.N. ROMGAZ S.A. ON SEPTEMBER 30, 2017
(January 01, 2017 - September 30, 2017)
IDENTIFICATION DETAILS ON REPORT AND ISSUER
Report Basis 
Article 67 of Law no. 24/2017 on issuers of securities and market operations and Annex 30 to CNVM Regulation no.1/2006 for a nine-month period ended on September 30, 2017 
Report Date
November 14, 2017
Name of the Company
Societatea Nationala de Gaze Naturale ROMGAZ S.A.
Headquarters
Medias 551130, No.4 Piaa Constantin I. Motas, County of Sibiu
Telephone/Fax number
0040 269 201020 / 0040 269 846901
Web/E-mail
www.romgaz.ro / secretariat@romgaz.ro
Tax Identification Number 
RO 14056826
LEI Code
2549009R7KJ38D9RW354
Trade Register No.
J32/392/2001
Subscribed and paid in share capital
RON 385,422,400
Number of shares
385,422,400 each with a nominal value of RON 1 
Regulated market where the company's shares are traded 
Bucharest Stock Exchange (shares) and London Stock Exchange (GDRs) 
COMPANY PERFORMANCE
During the nine-month period ended on September 30, 2017, the Company's operational and financial performances increased significantly in comparison with both the previous reporting periods and the schedules set in the beginning of the year.
After recording at national level a reduction of natural gas consumption of approx. 4.6% in 2015 and after a moderate increase of approx. 1.9% in 2016, 2017 experienced a consumption revival as it increased during the reporting period with approx. 12%, from 79.5 TWh during the nine-month period ended on September 30, 2016 to 89.04 TWh in the same period of 2017.
Due to the increase of the national gas consumption, Romgaz succeeded to increase its deliveries by 34.68% as compared to the similar 2016 period from 31.86 TWh to 42.91 TWh. As such, Romgaz market share on the Romanian gas delivery market reached 48.19%, by 8.12% higher than the market share held during the previous reporting period (40.08%). 
Natural gas production was 3.751 million mc, higher by 717 million mc than the production recorded during the similar 2016 reporting period (+23.6%) and higher by 263 million mc than the production schedule (+7.6%). 
Electricity production increased by 62.5% as compared to the production generated in the similar period of 2016, from 902.0 TWh to 1,465.5 TWh. This production placed Romgaz at a market share of 3.14% (Source: CNTEE Transelectrica SA).
The margins of the main profitability indicators: net profit (36.5%), EBIT (42.7%) and EBITDA (55.3%) confirm a high profitability of the company's activity. 
Relevant Financial Results
*RON million*
Q3 2016
Q2 2017
Q3 2017
 Q3 (%)
Main Indicators
9M 2016
9M 2017
 9M
(%)
551.6
894.7
849.4
54.0
Revenue 
2,401.5
3,241.6
35.0
917.1
936.9
914.8
-0.3
Income
2,827.4
3,241.9
14.7
753.5
572.3
547.8
-27.3
Expenses
1,908.9
1,841.1
-3.6
163.5
364.6
367.0
124.5
Gross profit
918.6
1,400.8
52.5
65.1
57.5
50.9
-21.8
Profit Tax
204.9
216.7
5.8
98.4
307.1
316.1
221.2
Net Profit
713.7
1,184.1
65.9
159.1
358.8
362.1
127.6
EBIT
900.5
1,385.2
53.8
242.7
424.9
475.7
96.0
EBITDA
1,257.0
1,792.9
42.6
0.3
0.8
0.8
166.7
Earnings per Share (EPS) (RON)
1.85
3.1
67.6
17.8
34.3
37.2
109.0
Net Profit Ratio (% of Revenue) 
29.7
36.5
22.9
28.8
40.1
42.6
47.9
EBIT Ratio (% of Revenue)
37.5
42.7
13.9
44.0
47.5
56.0
27.3
EBITDA Ratio (% of Revenue)
52.3
55.3
5.7
6,250
6,211
6,194
-1.6
Number of employees at the end of the period
6,250
6,194
-0.9
The figures in the table above are rounded, as such small reconcilliation differencies may result.
Note: income and expenses do not include in-house works capitalized as non-current assets.
Revenue, profit and the other indicators calculated on their basis were set based on the estimated equivalent value of delivered natural gas, due to the fact that the gas balance has not been finalised since November 2016 because of lack of clear regulations on gas deliveries to households and assimilated consumers.
In Q3 2017, the company recorded significant increase of the main indicators as compared to the similar period of 2016: revenue +54%, EBIT +127.6%, EBITDA +96% and net profit +221.2%. Also, the relating profitability rates had significant values.
Summary of main indicators for the nine-month period ended on September 30, 2017:
- Total Income, higher by RON 414.5 million, recording an increase of 14.7% while the total expenses recorded an increase of only 3.6%;
- Net Profit, higher by RON470.4 milion,increased significantly by 65.9% as compared to the similar 2016 reporting period reaching RON 1.184 million. This positive development is generated by the increase of natural gas and electricity sales and by reduction of expenses;
- Labour productivity increased by 36.2% as compared to the previous period from RON 384.24 thousand Revenue/employee at 9M 2016 to RON 523.35 thousand in 9M 2017;
- Net Profit Rate, EBIT Ratio and EBITDA Ratio are higher than compared to the similar period of 2016 due to the significant increase of Revenue from RON 2,401.5 million to RON 3,241.6 million;
- Earnings per Share is RON 3.1, 67.6% higher than the 9M 2016 recording.
Operational Results
Q3 2016
Q2 2017
Q3 2017
 Q3 (%)
Main Indicators
9M
2016
9M 2017
 9M (%)
836
1,226
1,192
42.58
Gross production (mil mc)*)
3,034
3,751
23.63
54
87
83
53.70
Petroleum royalty (mil mc)
208
269
29.33
1,201
1,486
1,191
-0.83
Condensate production (tonnes)
4,841
4,349
-10.16
391.5
388.2
465.8
18.98
Electric power production (GWh)
902.0
1,465.5
62.47
0.0
31.3
9.7
-
UGS gas extraction services invoiced (mil mc)
931.0
1,208.5
29.79
619.9
99.0
774.3
24.91
UGS gas injection services invoiced (mil mc)
1,302.4
1,375.8
5.64
*) - includes gas from the current production (including Romgaz-Schlumberger partnership) and gas delivered to SPEE Iernut and Cojocna.
Gas production reached the 2017 production schedule, the production level being 107.56% as compared to the scheduled one. 
During the first nine-month of 2017, Romgaz produced a natural gas quantity of 3,751 million mc, by 717 million mc (23.6%) higher than the production recorded in the similar period of the previous year. 
The increase of electric power production by approx. 62% more than the values recorded during the similar 2016 reporting period, as indicated in the table below, is in close connection with: (1) reduced production from hydro and wind sources; (2) extended period of heatwave during summer time; (3) repair and maintenance schedules for thermal power generation groups of other producers with the scope of conditioning the equipment for the winter and (4) decrease of generation capacity due to unavailable thermal or nuclear groups. 
The table below shows the electricity produced during the first three quarters of 2017 in comparison with the similar 2016 periods:
*MWh*
2016
2017
Indices 
1
2
3
4=3/2x100
Q1
318,720
611,483
91.86%
Q2
191,847
388,249
102.38%
Q3
391,472
465,812
18.99%
9M
902,039
1,465,543
62.47%
The full version of Q3 2017 Report (January - September 2017) and the Individual Interim Financial Statements (not audited) for the nine-month and three-month periods ended September 30, 2017 are available on company's website www.romgaz.ro - Section Investor Relations - Interim Reports and on RNS website at:
http://www.rns-pdf.londonstockexchange.com/rns/4149W_-2017-11-14.pdf

This information is provided by RNS
The company news service from the London Stock Exchange
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