REG - S.N.G.N. Romgaz S.A. - Q3 2024 Report

Societatea Nationala de Gaze Naturale Romgaz SAAnnouncement

15/11/2024 07:00

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RNS Number : 4106M  S.N.G.N. Romgaz S.A.  15 November 2024

QUARTERLY REPORT ON THE ECONOMIC FINANCIAL ACTIVITY OF

ROMGAZ GROUP ON SEPTEMBER 30, 2024

(January 01, 2024 - September 30, 2024)

 

IDENTIFICATION DETAILS ON REPORT AND ISSUER

 Report based on                                         Law No. 24/2017 on issuers of financial instruments and market operations
                                                         (Art.69) and ASF Regulation (Financial Supervisory Authority) No. 5/2018 on
                                                         issuers of financial instruments and market operations (Annex No.13), for the
                                                         nine-month period ended September 30, 2024
 Report Date                                             November 15, 2024
 Company Name                                            Societatea Naţională de Gaze Naturale "ROMGAZ" S.A.
 Headquarters                                            Mediaş, Piaţa Constantin I. Motaş 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 (GDRs)
 Subscribed and paid in share capital                    RON 3,854,224,000
 Shares main characteristics                             3,854,224,000 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

 

ROMGAZ GROUP (( 1  (#_ftn1) )) PERFORMANCES

Romgaz Group keeps high operational and financial performances in the first
nine months of 2024.

Consolidated net profit per share (EPS) was RON 0.59.

Margins of the main profitability indicators on September 30, 2024: net
consolidated profit (40.39%), consolidated EBIT (46.19%) and consolidated
EBITDA (53.81%) continue to keep at high levels (September 30, 2023: 31.84%,
57.36% and 63.07% respectively).

For the reporting period, Romania's estimated natural gas consumption(( 2 
(#_ftn2) )) was 70.41 TWh, approximately 1.7% higher than the consumption
recorded in the similar period of 2023, of which around 13.87 TWh was covered
by import gas and the difference of 56.54 TWh by domestic gas.

For the first nine months of 2024, Romgaz total deliveries, on the domestic
market, represented 51.63% from the national estimated consumption, 3.3% lower
than in the same period of last year. Concurrently, Romgaz natural gas
deliveries from internal production on the Romanian market, represented 64.28%
from the national consumption covered with gas from internal production.

Natural gas production for the first 9 months of 2024 was 3,671.96 million
m(3), by 4.46% namely 156.96 million m(3), higher than production recorded in
the similar period of 2023.

Electricity produced in the reporting period was 729.675 GWh, 13.75% increase
(88.209 GWh) as compared to the same period of last year.

Romgaz produced in Q3 2024 278.906 GWh electricity, higher by 135.019 GWh,
namely 93.83% more than in Q3 2023.

Relevant Consolidated Financial Results

*RON million*

 Q3 2023(**))  Q2 2024  Q3 2024    Δ Q3 (%)   Main indicators                               9M 2023(**))  9M 2024  Δ 9M (%)
 1,913.0       1,623.9  1,732.8    -9.42      Revenue                                        6,810.3      5,629.7  -17.33
 2,154.9       1,796.4   1,914.8   -11.14     Income                                         7,384.0      6,130.5  -16.98
 1,114.6       1,115.7  1,372.0    23.09      Expenses                                       3,339.5      3,422.0  2.47
 1.7            1.4      2.2       28.05      Share of the associates' result                3.3          5.6      69.51
 1,042.1        682.1    545.0     -47.70     Gross profit                                   4,047.8      2,714.1  -32.95
 559.0          90.2     108.6     -80.58     Profit tax                                     1,879.1      440.4    -76.56
 483.1          591.9    436.4     -9.65      Net profit                                     2,168.7      2,273.7  4.84
 1,007.7        632.4    523.3     -48.07     EBIT                                           3,906.3      2,600.4  -33.43
 1,122.3        770.3    671.3     -40.19     EBITDA                                         4,295.5      3,029.1  -29.48
 0.13           0.15     0.11      -9.65      Earnings per share (EPS(*))) (RON)             0.56         0.59     4.84
 25.25          36.45    25.19     -0.26      Net profit rate (% from Revenue)               31.84        40.39    26.82
 52.68          38.94    30.20     -42.67     EBIT ratio (% from Revenue)                    57.36        46.19    -19.47
 58.67          47.43    38.74     -33.97     EBITDA ratio (% from Revenue)                  63.07        53.81    -14.69
 5,951         5,948    5,967      0.27       Number of employees at the end of the period  5,951         5,967    0.27

The figures above are rounded. Therefore, small differences may result upon
reconciliation.

* Earnings per share (EPS) was calculated to the current number of
3,854,224,000 shares for all periods presented.

(**)) Information related to previous periods were changed following a revised
presentation of financial statements. Income from works capitalized as
non-current assets were offset by costs incurred for carrying out such
investments. Currently, income from works capitalized as non-current assets
are shown in a separate row in the statement of comprehensive income and
expenses include such costs. The result of previous periods is not affected by
this change in presentation (see Note 2 from the Condensed consolidated
interim statement of comprehensive income on September 30, 2024).

 

A brief overview of the Group's main indicators during the 9M period ended
September 30, 2024:

·      Total revenue for the reporting period is lower by RON 1,253.50
million, recording a drop of 16.98% due to the following factors:

-       decrease by 21.28% of revenues from natural gas sales (RON
4,654.42 million in the nine-month period ended September 30, 2024 as compared
to RON 5,912.94 million in the similar period of 2023), mainly due to drop of
prices. As regards quantities, gas deliveries decreased by 4.53%.

-       electricity revenues increased by 6.52% (RON 307.31 million for
the 9M ended September 30, 2024 as compared to RON 288.48 million in the
similar period of 2023). Delivered electricity quantities were higher by 3.5%
in the reviewed period as compared to the similar period of last year;

-       consolidated revenue from underground storage activities
decreased by 6.77% (RON 395.58 million for the 9M ended September 30, 2024 as
compared to RON 424.29 million for the similar period of 2023), due to the
decrease of consolidated income from capacity booking and income from
injection).

·      Increase of total expenses in the 9M period ended September 30,
2024 was only of 2.47% (+RON 82.5 million);

·      Consolidated net profit is RON 2,273.65 million, higher by 4.84%
namely RON 104.96 million, as compared to the similar period of last year, a
significant positive influence was the elimination of the solidarity
contribution starting with 2024 (RON 1,388.39 million for Q3 2023);

 

Operational Results

 Q3 2023  Q2 2024  Q3 2024  Δ Q3 (%)   Main Indicators                                  9 months 2023  9 months 2024  Δ 9 months (%)
 1,131.7  1,195.9  1,185.0  4.7        Gas production (million m(3))                    3,515.0        3,672.0        4.5
 79.2      84.1    82.2     3.8        Petroleum royalty (million m(3))                 246.2           257.9          4.7
 5,544.0  9,028.0  8,993.0  62.2       Condensate production (tons)                     16,483.0       25,461.0       54.5
 143.9    186.9    278.9    93.83      Electricity production (GWh)                     641.5          729.7          13.7
 3.2      35.9     12.8     300.0      Invoiced UGS withdrawal services (million m(3))  1,160.5        996.4          -14.1
 841.5    779.6    692.2    -17.7      Invoiced UGS injection services (million m(3))   1,701.2        1,512.9        -11.1

Note: the information is not consolidated, transactions between Romgaz and
Depogaz are included.

 

In the first 9 months of 2024, Romgaz produced 3,672 million m(3) natural gas,
by 157 million m(3) (4.54%) higher volumes than in the similar period of 2023.

Gas production for the first 9M 2024 was influenced by:

-     Completion of investment works to extend the productive infrastructure
that led to streaming in production 7 new wells;

-       Significant number of wells were reactivated by performing
specific investments in wells;

-       Production optimization of wells with highest production
potential;

-    Continuous rehabilitation projects of the main mature gas reservoirs,
these projects aim to maximise natural gas production and to increase the
recovery factor.

We state that Caragele field had a significant contribution on the production
level in the first 9 months of 2024, by drilling and streaming in production a
development well, by optimizing production at the high depth well and by
reactivating two wells after performing specific investments.

National estimated natural gas consumption for Q3 2024 was 14.46 TWh,
approximately 6.17% higher than the consumption recorded in Q3 2023, of which
4.59 TWh was covered by import gas and the difference of 9.87 TWh by domestic
gas. For this period, Romgaz delivered on the domestic market 11 TWh,
representing 76.1% in the national consumption.

The volume of gas sold by Romgaz in the reporting period, representing
deliveries to customers, without CTE Iernut consumption, decreased by 4.5% as
compared with 9M 2023.

The volume of electricity produced as shown in the table below is in close
connection with the energy demand, the evolution of prices on competitive
markets and the quantity of natural gas allocated to the production of
electricity and the efficiency of said activity.

 
                                                    *MWh*

           2022     2023     2024     Δ 2024/2023 (%)
 1         2        3        4        5=4/3x100
 Q 1       345,337  323,037  263,832  -18.33
 Q 2       199,323  174,542  186,937  7.10
 Q 3       294,806  143,887  278,906  93.84
 9 months  839,465  641,466  729,675  13.75

 

 

The full version of the Quarterly Report on the Economic-Financial Activity of
Romgaz Group on September 30, 2024 (January - September 2024) and the
Condensed Consolidated Interim Financial Statements for the nine-month and
three-month periods ended September 30, 2024 (unaudited), prepared in
accordance with International Accounting Standard 34, as adopted by the
European Union, are available on company's website www.romgaz.ro
(https://www.romgaz.ro/en) - Investors - Interim Reports and on Bucharest
Stock Exchange website, at the link bellow.

http://www.rns-pdf.londonstockexchange.com/rns/4106M_1-2024-11-15.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4106M_1-2024-11-15.pdf)

 

 1  (#_ftnref1) Romgaz Group consists of S.N.G.N. Romgaz S.A. (the
"Company"/"Romgaz") as parent company and the subsidiaries owned 100% by
Romgaz: Filiala de Înmagazinare Gaze Naturale Depogaz Ploiești SRL
("Depogaz") and Romgaz Black Sea Limited.

 2  (#_ftnref2) Consumption is estimated as at the date hereof, ANRE did not
publish the report on the natural gas market for August‑September 2024.

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