Net profit of the natural gas producer Romgaz Medias (SNG) fell 12 percent in the first half of the year to RON 766.6 million (EUR 172.4 million), after a drop in natural gas consumption led to lower annual business by 11.5 percent, according to company representatives.


In the first six months of last year net profit stood at RON 871 million.

The company’s turnover declined by 11.5 percent in the first six months of the year from RON 2.53 billion (EUR 571.2 million) to RON 2.24 billion (EUR 503.7 million) against the same period of this year.

According to the Romgaz statement, company performance was mainly affected by the decrease of some 6 percent in natural gas consumption demand  on the Romanian market.

Revenues were lower by 12.5 percent in the analyzed period, down to RON 2.24 billion from RON 2.56 billion in H1 of the previous year. Total revenue represents 99.9 percent of those planned for the first half, the company notes.

In the second quarter, profit fell 22.5 percent to RON 203.6 million, for a turnover 19.3 percent lower year on year (RON 869.6 million).

The company says the quarterly evolution reflects the seasonality of demand, influenced by warm weather and the drop in demand from the fertilizer production sector, which leads to lower delivery of natural gas.

In the first half, Romgaz produced a volume of 2.77 billion cubic meters, down by 89 million cubic meters (3.1 percent) for the same period last year.

The amount of natural gas supplied in the first six months fell 12.1 percent to 2.88 billion cubic meters, and was covered almost entirely from domestic sources. The supplies from domestic production stood at 2.88 billion cubic meters, 10.2 percent less compared to the same period of the previous year, while import fell by 97 percent to 2.2 million cubic meters.

In the second quarter, gas production decreased by 4.4 percent to 1.34 billion cubic meters, while deliveries fell by 13.3 percent to 1.18 billion cubic meters. The supplies were provided entirely from domestic sources.

At the latest quotes on the Bucharest Stock Exchange shares, the company has a market capitalization of RON 13.14 billion (about EUR 3 billion).

Natalia Martian