REG - S.N.G.N. Romgaz S.A. - 2023 Preliminary financial results

Societatea Nationala de Gaze Naturale Romgaz SAAnnouncement

28/02/2024 07:00

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RNS Number : 7572E  S.N.G.N. Romgaz S.A.  28 February 2024

PRELIMINARY CONSOLIDATED ANNUAL REPORT ON THE ECONOMIC FINANCIAL ACTIVITY OF
ROMGAZ GROUP ON DECEMBER 31, 2023

(January 01, 2023 - December 31, 2023)

IDENTIFICATION DETAILS ON REPORT AND ISSUER

 Report based on                                         Law No. 24/2017 on issuers of financial instruments and market operations
                                                         (Art.63) for the twelve-month period ended December 31, 2023
 Report Date                                             February 28, 2024
 Company Name                                            Societatea Nationala de Gaze Naturale "ROMGAZ" SA
 Headquarters                                            Medias, Piata Constantin I. Motas 4, 551130, Sibiu
 Telephone/fax number                                    004 0374 401020 / 004 0374474325
 Web/E-mail                                              www.romgaz.ro (http://www.romgaz.ro) / secretariat@romgaz.ro
                                                         (mailto:secretariat@romgaz.ro)
 Registration No. with the Trade Register Office         J32/392/2001
 Fiscal Code                                             RO14056826
 Legal Entity Identifier (LEI)                           2549009R7KJ38D9RW354
 Regulated market where the company's shares are traded  Bucharest Stock Exchange (shares) and London Stock Exchange (Global Depositary
                                                         Receipts - GDRs)
 Subscribed and paid in share capital                    RON 385,422,400
 Shares main characteristics                             385,422,400 shares, each with a nominal value of RON 1

                                                         nominative, ordinary, indivisible shares, issued dematerialised and free
                                                         tradable since November 12, 2013, as SNG - for shares and SNGR - for GDRs

 

OVERVIEW

S.N.G.N. Romgaz S.A. is a Romanian natural gas producer and supplier, the main
business segments of the Romgaz Group 1  being: gas exploration, gas
production and supply, underground gas storage and electricity production.

Relevant Consolidated Financial Results

(RON million, unless otherwise specified)

 Q4 2022  Q3 2023  Q4 2023 p*  Δ Q4 (%)   Main indicators                                   2022      2023 p*  Δ '23/'22 (%)
 2,547.1  1,913.0  2,191.6     -13.96     Revenue                                           13,359.7  9,001.9  -32.62
 2,604.3  2,065.7  2,171.4     -16.62     Income                                            13,658.1  9,362.7  -31.45
 1,120.5  1,025.3  1,153.3     2.93       Expenses                                          9,506.2   4,300.1  -54.77
 0.7      1.7      1.6         128.57     Share of profit of associates                     2.4       4.9      104.17
 1,484.5  1,042.1  1,019.6     -31.32     Gross result: profit/(loss)                       4,154.2   5,067.5  21.98
 1,175.6  559.0    376.2       -68.00     Profit tax                                        1,607.5   2,255.4  40.30
 308.9    483.1    643.4       108.29     Net result: profit/(loss)                         2,546.7   2,812.1  10.42
 1,457.2  1,007.7  991.4       -31.97     EBIT                                              3,982.3   4,897.6  22.98
 1,637.3  1,114.9  1,099.7     -32.83     EBITDA                                            4,532.4   5,374.2  18.57
 0.8      1.3      1.7         108.29     Earnings per share (EPS) (RON)                    6.6       7.3      10.42
 12.13    25.25    29.36       142.04     Net profit ratio (% from Revenue)                 19.06     31.24    63.90
 57.21    52.68    45.23       -20.94     EBIT ratio (% from Revenue)                       29.81     54.41    82.52
 64.28    58.28    50.18       -21.94     EBITDA ratio (% from Revenue)                     33.93     59.70    75.95
 5,971    5,951    5,980       0.15       Number of employees at the end of the period      5,971     5,980    0.15

* p - preliminary

The figures above are rounded, therefore small differences may result upon
reconciliation. The results shown in this report are not audited; final
results may differ.

 

Romgaz Group's preliminary performances for the year ended December 31, 2023
were influenced by the following factors:

·    Natural gas production estimated for 2023 is 4,788.5 million m(3), by
147.4 million m(3) lower than the production of the previous year (-2.99%).

·     Total revenue is lower by RON 4,295.4 million, recording a drop of
31.45% due to the following factors:

o  decrease of revenues from natural gas sales (RON 7,766.97 million in 2023
as compared to RON 11,306.97 million in the previous year); the obligation
enforced by GEO No. 27/2022 had a significant impact that led to the drop of
31.31% of revenues from gas sales, therefore Romgaz sold most of production at
the regulated price of RON 150/MWh (86.43% of deliveries);

o  electricity revenues also dropped (RON 406.98 million in 2023 as compared
to RON 1,330.61 million in the previous year). According to GEO No.27/2022, as
of 2023, Romgaz sold almost all electricity production at RON 450/MWh;

o  revenue from underground storage activities increased by 17.66% (RON
552.19 million in 2023, as compared to RON 469.33 million in 2022), mainly due
to the increase of capacities booked by clients for underground gas storage;

·     Total expenses decreased by 54.77% as compared to last year, mainly
due to the decrease of windfall tax on revenues from natural gas (RON
-4,014.05 million) and royalty expenses (RON ‑1,039.56 million). The Group
recorded in January-December 2022 expenses of RON 403.80 million with the
windfall tax on electricity sales, which became subsequently a contribution to
the energy transition fund; taking into account that 90% electricity was sold
at 450 RON/MWh, this contribution is insignificant for the reviewed period;

·    Increase of the consolidated gross profit by 21.98% as compared to the
similar period of the previous year was offset by the profit tax. Profit tax
includes the solidarity contribution introduced at the end of 2022, for years
2022-2023. In 2023, the expense recorded with this contribution is RON
1,687.37 million, an increase by RON 684.58 million as compared to the
previous year;

·      Preliminary net profit for 2023: RON 2.81 billion (2022: net
profit RON 2.55 billion) increase of 10.42%;

·   Achieved net consolidated profit margins (31.24%), consolidated EBIT
(54.41%) and EBITDA (59.70%) strengthened as compared to 2022 (19.06%; 29.81%
and 33.93% respectively). The increase is due to lower royalty expenses (RON
600.52 million in 2023 as compared to RON 1,640.08 million in 2022) and to
lower expense with the windfall tax from gas sales (RON 889.80 million in 2023
as compared to RON 4,903.85 million in 2022), as a result of enforcing
provisions of GEO No. 27/2022. According to this ordinance, natural gas
quantities sold at RON 150/MWh are exempted from payment of windfall tax, and
royalty is calculated and paid at this price, and not at the reference price
communicated monthly by the National Agency for Mineral Resources.

 

The full version of the Preliminary Consolidated Annual Report on the Economic
Financial Activity of Romgaz Group on December 31, 2023 (January 01, 2023 -
December 31, 2023) is available on company's website www.romgaz.ro
(https://www.romgaz.ro/en) - Investors - Annual Reports and on Bucharest Stock
Exchange website, at the link bellow.

 

http://www.rns-pdf.londonstockexchange.com/rns/7572E_1-2024-2-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7572E_1-2024-2-28.pdf)

 1  Romgaz Group consists of S.N.G.N. Romgaz S.A. ("the Company"/"Romgaz") as
parent company and the subsidiaries S.N.G.N. Romgaz S.A. - Filiala de
Inmagazinare Gaze Naturale Depogaz Ploiesti SRL ("Depogaz") and Romgaz Black
Sea Limited (former ExxonMobil Exploration and Production Romania Limited),
both owned 100% by Romgaz.

 

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