REG - S.N.G.N. Romgaz S.A. - Q1 2024 Report

Societatea Nationala de Gaze Naturale Romgaz SAAnnouncement

15/05/2024 07:00

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RNS Number : 5071O  S.N.G.N. Romgaz S.A.  15 May 2024

QUARTERLY REPORT

ON THE ECONOMIC-FINANCIAL ACTIVITY OF ROMGAZ GROUP

ON MARCH 31, 2024 (January 01, 2024 - March 31, 2024)

 

 

IDENTIFICATION DETAILS ON REPORT AND ISSUER

 Report basis                                               Law No. 24/2017 on issuers of financial instruments and market operations,
                                                            republished (Article 69) and ASF Regulation No. 5/2018 on issuers of financial
                                                            instruments and market operations (Annex No.13), for the three-month period
                                                            ended on March 31, 2024
 Report Date                                                May 15, 2024
 Company Name                                               Societatea Naţională de Gaze Naturale "ROMGAZ" SA
 Headquarters                                               Mediaş, 4 Constantin I. Motaş Sq., 551130, Sibiu County
 Telephone/fax number                                       004 0374401020 / 004 0374474325
 Web/E-mail                                                 www.romgaz.ro (http://www.romgaz.ro) / secretariat@romgaz.ro
                                                            (mailto:secretariat@romgaz.ro)
 Registration Number with the Office of the Trade Registry  J32/392/2001
 Fiscal Code                                                RO14056826
 Legal Entity Identifier (LEI)                              2549009R7KJ38D9RW354
 Regulated market where  company shares are traded          Bucharest Stock Exchange (shares) and London Stock Exchange (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 dematerialized and free
                                                            tradable since November 12, 2013 as SNG - for shares and SNGR - for GDRs

 

ROMGAZ GROUP (( 1 )) PERFORMANCES

In the first quarter (Q1) 2024, Romgaz Group recorded a net consolidated
profit of RON 1,245.3 million, an increase of 28.38%, namely by RON 275.3
million, as compared to the revenue achieved in the similar period of last
year. As compared to Q4 2023, net profit increased by 93.55% and gross profit
by 45.82%.

Revenue for Q1 2024 of RON 2,273.01 million decreased by 21.86%, by RON 636.03
million respectively, as compared to the revenue achieved in Q1 2023, due to a
6.68% drop in gas deliveries, 18.33% less electricity production and 9.1%
lower revenue form storage services.  Revenue from gas sales represent
approximately 85% of Q1 2024 total revenue, revenue from electricity sales
represent - 4.8% and revenue from storage services 6%. As compared to Q4 2023,
revenue increased by 3.71% and gas deliveries by 5.70%.

Net consolidated profit per share (EPS) in March 2024 was RON 3.23 (calculated
to the number of shares registered with the Central Depositary on March 31,
2024, before the share capital increase approved by the extraordinary general
meeting of shareholders by Resolution No. 17 of December 18, 2023).

The achieved margins of the consolidated net profit (54.79%), consolidated
EBIT (63.56%) and consolidated EBITDA (69.56%) recorded a significant increase
as compared to Q1 2023 (33.34%; 59.90% and 64.71% respectively.

Natural gas consumption estimated(( 2 )) nationally for Q1 2024 was about
35.42 TWh, approximately 5.5% higher than the consumption recorded in Q1 2023.

Natural gas production recorded in Q1 2024 was 1,290.98 million m(3). Compared
to the natural gas production of Q1 2023, the production recorded in Q1 2024
increased by 4.39%.

Electricity produced in Q1 2024 of 263.832 GWh, dropped by 18.33% compared to
the production in the similar period of last year (323.04 GWh).

Relevant Consolidated Financial Results

*RON million*

 Q1 2023  Q4 2023  Q1 2024  ΔQ1/Q4 (%)   Main indicators                               Q1 2023  Q1 2024  Δ Q1 (%)
 2,909.0  2,191.6  2,273.0  3.71         Revenue                                       2,909.0  2,273.0  -21.86
 2,984.5  2,171.4  2,376.0  9.42         Income                                        2,984.5  2,376.0  -20.39
 1,199.5  1,153.3  891.1    -22.74       Expenses                                      1,199.5  891.1    -25.71
  0.5     1.6      2.0      23.68        Share of profit of associates                  0.5     2.0      288.58
 1,785.5  1,019.6  1,486.9  45.82        Gross profit                                  1,785.5  1,486.9  -16.72
  815.5   376.2    241.6    -35.80       Profit tax                                     815.5   241.6    -70.38
  970.0   643.4    1,245.3  93.55        Net profit                                     970.0   1,245.3  28.38
 1,742.4  991.4    1,444.7  45.73        EBIT                                          1,742.4  1,444.7  -17.08
 1,882.4  1,099.7  1,581.0  43.76        EBITDA                                        1,882.4  1,581.0  -16.01
  2.5     1.7      3.2      93.55        Earnings per share (EPS) (RON)                 2.5     3.2      28.38
  33.34   29.36    54.79    86.62        Net profit ratio (% from Revenue)              33.34   54.79    64.31
  59.90   45.23    63.56    40.51        EBIT ratio (% from Revenue)                    59.90   63.56    6.12
  64.71   50.18    69.56    38.61        EBITDA ratio (% from Revenue)                  64.71   69.56    7.49
                                         Number of employees at the end of the period

 5,943    5,980    5,973    -0.12                                                      5,943    5,973    0.50

 

Operational Results

 Q1 2023  Q4 2023  Q1 2024  ΔQ1/Q4 (%)   Main Indicators                                  Q1 2023  Q1 2024  Δ Q1 (%)
 1,236.7  1,273.5  1,291.0  1.37         Gross production (million m(3))                  1,236.7  1,291.0  4.39
 88.5     103.4    109.5    5.90         Petroleum royalty (million m(3))                 88.5     109.5    23.73
 5,617    6,232    7,440.0  19.38        Condensate production (tonnes)                   5,617    7,440.0  32.45
 323.0    321.1    263.8    -17.84       Electricity production (GWh)                     323.0    263.8    -18.33
 1,114.9  582.2    947.7    62.8         UGS withdrawal services (million m(3)) invoiced  1,114.9  947.7    -15.0
 45.4     204.2    41.1     -79.9        UGS injection services (million m(3)) invoiced   45.4     41.1     -9.5

Note: information is not consolidated, it also includes transactions between
Romgaz and Depogaz.

Natural gas production recorded in Q1 2024 was influenced by:

ü resuming production at inactive wells by performing interventions and
recompletion operations;

ü reduced inspection/repair periods at compressor stations and dehydration
stations;

ü ensuring operation under normal parameters of all compression and
dehydration stations;

ü increased productivity of wells with potential flow rate;

ü continuous rehabilitation projects of the main mature gas fields;

The conditions underlying these results were:

·      gas imports for consumption were approximately 5.21 TWh, 69%
higher than in the same period of the previous year;

·      lower gas withdrawals from Romgaz UGSs by 1.615 TWh than in the
similar period of 2023 (0.147 TWh compared to 1.762 TWh).

National gas consumption estimated for Q1 2024 was 40.63 TWh, approximately
5.5% higher than the consumption recorded in Q1 2023, of which approximately
5.21 TWh was covered by import gas and the difference of 35.42 TWh by domestic
gas. Romgaz contribution was 13.69 TWh, representing 33.69% from the national
consumption and 38.65% from the consumption covered from domestic gas.

 

 

The full version of the Quarterly Report on the Economic-Financial Activity of
Romgaz Group on March 31, 2024 (January - March 2024) and the Consolidated
Condensed Interim Financial Statements for the Three-Month Period Ended March
31, 2024 (Unaudited), Prepared in Accordance with International Accounting
Standard 34, are available on company's website www.romgaz.ro
(https://www.romgaz.ro/en) - Investors - Interim Reports and on RNS website,
at: http://www.rns-pdf.londonstockexchange.com/rns/5071O_1-2024-5-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5071O_1-2024-5-15.pdf)

 1  Romgaz Group consists of SNGN Romgaz SA (the "Company"/"Romgaz") as parent
company and the subsidiaries - Filiala de Înmagazinare Gaze Naturale Depogaz
Ploiești SRL ("Depogaz") and Romgaz Black Sea Limited, both wholly owned by
Romgaz.

 2  Consumption is estimated as ANRE has not published, until the date hereof,
the monitoring reports on the gas market for February and March 2024.

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