REG - S.N.G.N. Romgaz S.A. - Half-year Report H1 2017 <Origin Href="QuoteRef">ROSNG.BX</Origin>

Societatea Nationala de Gaze Naturale Romgaz SAAnnouncement

11/08/2017 07:05

RNS Number : 7517N
S.N.G.N. Romgaz S.A.
11 August 2017
HALF-YEAR REPORT ON THE ECONOMIC-FINANCIAL ACTIVITY OF S.N.G.N. ROMGAZ S.A. AS OF JUNE 30, 2017
(January 01, 2017 - June 30, 2017)
IDENTIFICATION DETAILS ON REPORT AND ISSUER
Report based on 
Article 65 of Law no. 24/2017 on issuers of financial instruments and market operations and Annex no. 31 of CNVM Regulation no. 1/2006 for the six-month period ended on June 30, 2017 (H1 of the Financial Year 2017)
Report Date
August 11, 2017
Name of the Company
Societatea Nationala de Gaze Naturale "ROMGAZ" SA
Headquarters
Medias, 4 Piata Constantin I. Motas, code 551130, County Sibiu
Telephone/fax number
0040 269 201020/0040 269 846901
Web/E-mail
www.romgaz.ro/ secretariat@romgaz.ro
Fiscal Code
14056826
Trade Registry No.
J32/392/2001
Subscribed and paid in share capital
RON 385,422,400 
Number of shares
385,422,400, each having a nominal value of RON 1
Regulated markets where the issued securities are traded:
Bucharest Stock Exchange BVB (shares), London Stock Exchange (GDRs)


1st HALF-YEAR 2017 OVERVIEW
Company's Performances*
In H1 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 of approx. 1.9% in 2016, 2017 experienced a consumption revival as it increased during the reporting period with approx. 22%, from 61.42TWh in H1 2016 to 74.90TWh in H1 2017.
Due to the increase of the national gas consumption, Romgaz succeeded to increase its deliveries by 31.59% as compared to the previous period from 24.34TWh to 32.03TWh. As such, Romgaz market share on the Romanian gas delivery market reached 42.76%, by 3.13% higher than the market share held during the previous reporting period (39.63%). 
Natural gas production was 2.559 million cm, higher by 362 million cm than the production recorded during the previous reporting period (+16.5%) and higher by 91.8 million cm than the production schedule (+3.7%). According to company's estimates, this production placed Romgaz at a market share of 46.5% for consumption of gas domestically produced, which is an increase of 4.91% in relation to the market share of the previous reporting period (41.59%).
Electricity production increased by 95.8% as compared to the production generated in the similar period of 2016, from 510.6 TWh to 999.7 TWh. This production placed Romgaz at a market share of 3.13%**.
Revenue from natural gas sales are by 25.1% higher as compared to the same period of the previous year and by 17.3% higher than the estimated revenue included in the budget for this period.
The margins of the main profitability indicators: net profit (36.28%), EBIT (42.8%) and EBITDA (55.1%) confirm a high profitability of the company's activity; the net profit rate and EBIT ratio are the highest half-year values ever recorded by the company. 
Notes: * Given the fact that ANRE has not published market monitoring reports since November 2016, the data used for the national consumption is an estimate.
 ** Source: CNTEE Transelectrica SA
Relevant Financial Result
million RON
Q2
2016
Q1
2017
Q2
2017
 Q2
(%)
Main indicators
HI
2016
HI
2017
 HI
(%)
486.4
1,497.5
894.7
83.9
Revenue
1,849.9
2,392.2
29.3
594.1
1,390.3
936.9
57.7
Income
1,910.4
2,327.1
21.8
449.1
721.1
572.3
27.4
Expenses
1,155.4
1,293.4
11.9
145.0
669.2
364.6
151.4
Gross Profit
755.0
1,033.8
36.9
19.0
108.3
57.5
202.6
Profit Tax
139.7
165.8
18.7
125.9
560.9
307.1
143.9
Net Profit
615.3
868.0
41.1
138.8
664.2
358.8
158.5
EBIT
741.4
1,023.1
38.0
291.5
892.2
424.9
45.8
EBITDA
1,014.3
1,317.1
29.9
0.3
1.5
0.8
166.7
Earnings per share (RON)
1.6
2.25
40.6
25.9
37.5
34.3
32.4
Net Profit Rate (% from Revenue)
33.26
36.28
9.1
28.5
44.4
40.1
40.7
EBIT Ratio (% from Revenue)
40.1
42.8
6.7
59.9
59.6
47.5
-20.7
EBITDA Ratio (% from Revenue)
54.8
55.1
0.5
6,282
6,220
6,211
-1.1
Number of employees at the end of the period
6,282
6,211
-1.1
The figures above are rounded. Therefore, small differences may result upon reconciliation.
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 Q2 2017, the company recorded significant increase of the main indicators as compared to the similar period of 2016: revenue +83.9%, EBIT +158.5%, EBITDA +45.8% and net profit +143.9%. Also the relating profitability rates had significant values.
Summary of main indicators for H1 2017:
 Total Income, higher by RON 416.7 million, recording an increase of 21.8% while the total expenses recorded an increase of only 11.9%;
 Net Profit, higher by RON 252.7 million than the net profit recorded during the previous period (+41.1%), an increase generated from the increase of natural gas and electricity sales and from reduction of expenses;
 Labour productivity increased by 19.8% as compared to the previous period from RON 329.37 thousand Revenue/employee in H1 2016 to RON 395.0 thousand in H1 2017;
 Net Profit Rate, EBIT Ratio and EBITDA Ratio are higher than compared to H1 2016 due to the significant increase of Revenue from RON 1,849.9 million to RON 2,392.2 million;
 Earnings per Share at RON 2.25, 40.6% higher than the H1 2016 recording.
Operational Results
Q2
2016
Q1
2017
Q2
2017
 Q2
(%)
Main Indicators
HI
2016
HI
2017
 HI
(%)
823
1,333
1,226
49.0
Gas Produced (million cm)
2,197
2,559
16.5
54
98
87
61.1
Petroleum Royalty (million cm)
153
185
20.9
1,590
1,672
1,486
-6.5
Condensate Production (tonnes)
3,641
3,158
-13.3
191.8
611.4
388.2
102.3
Electricity delivered (GWh)
510.6
999.7
95.8
0.0
1,167.5
31.3
-
UGS gas withdrawal services (million cm) 
931.0
1,198.8
28.8
373.6
502.5
99.0
-73.5
UGS gas injection services (million cm)
682.5
601.5
-11.9
Gas production was in the parameters expected when preparing the 2017 production schedule; the achieved level represents 103.72% of the schedule. 
Romgaz produced 2,559 million cm of natural gas during the first half of 2017, 362 million cm (16.5%) more than the volume produced during the same period of the previous year. 
As shown in the table below, the increase of produced electricity was in close relation to the low temperatures recorded during the cold season, therefore a 200 MW power unit operated during H1 2017. 
MWh

2016
2017
Ratio
1
2
3
4=3/2x100
Q1
318,720.48
611,482.91
191.85%
Q2
191,846.53
388,248.50
202.37%
HI
510,567.01
999,731.41
195.80%
The full version of H1 2017 Report (January - June 2017) and the Individual Interim Financial Statements (reviewed) for the six-month and three-month periods ended June 30, 2017 are available on company's website www.romgaz.ro -Investor Relations - Interim Reports and on RNS website at:
http://www.rns-pdf.londonstockexchange.com/rns/7517N_-2017-8-11.pdf

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