TIDMSNGR
RNS Number : 2107S
S.N.G.N. Romgaz S.A.
12 November 2021
QUARTERLY REPORT
ON THE ECONOMIC-FINANCIAL ACTIVITY OF ROMGAZ GROUP
ON SEPTEMBER 30, 2021 (January 01, 2021 - September 30,
2021)
IDENTIFICATION DETAILS ON REPORT AND ISSUER
Report based on Law No. 24/2017 on issuers of financial
instruments and market operations,
republished (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 on
September 30, 2021
Report Date November 12, 2021
Company Name Societatea Na ional de Gaze Naturale
"ROMGAZ" SA
Headquarters Media , Pia a Constantin I. Mota ,
nr.4, cod 551130, jude ul Sibiu
Telephone/fax number 0040 374 401020 / 0040 269 846901
Web/E-mail www.romgaz.ro / secretariat@romgaz.ro
Registration Number with J32/392/2001
the Office of the Trade
Registry
Fiscal Code RO14056826
Legal Entity Identifier 2549009R7KJ38D9RW354
(LEI)
Regulated market where Bucharest Stock Exchange (shares) and
company shares are traded London Stock Exchange (GDRs)
Subscribed and paid in RON 385.422.400
share capital
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] PERFORMANCE
In the first nine months of 2021, Romgaz Group recorded a
revenue of RON 3,496.5 million, an increase by 19.8%, namely RON
578.1 million, as compared with the revenue achieved in the first 9
months of 2020. In the 3(rd) quarter (Q3) of 2021, the consolidated
revenue increased by 71.9% compared with Q3 2020.
Net profit of RON 1,156.4 million was higher by 22.7%, namely
RON 214.4 million, as compared with the similar period of the
previous year.
Consolidated net profit per share (EPS) was RON 3.0, 22.7%
higher than the one recorded in the first nine months of 2020.
Achieved margins of consolidated net profit (33.07%),
consolidated EBIT (37.50%) and consolidated EBITDA (51.69%) are
relatively similar with those recorded in the nine month period
ended on September 30, 2020 (32.28%; 36.71% and 52.74%
respectively) and maintain Group's profitability.
For the reporting period, Romania's estimated natural gas
consumption[2] was 90.32 TWh, approximately 3.2% higher than the
consumption recorded in the similar period of 2020.
Thus, Romgaz market share estimated for the first nine months of
2021, is 45.8%, 8% higher than the market share recorded in the
same period of the previous year.
Natural gas production in the first 9 months of 2021 was 3,706.4
million m(3) , higher by 15.9%, namely 508.7 million m(3) , than in
the similar period of 2020.
Electricity produced in the first 9 months of 2021 was 426.071
GWh, 31.04% lower (-191.795 GWh) than in the same period of the
previous year.
In Q3, Romgaz produced 222.989 GWh, 99.644 GWh lower, namely
30.88%, than in the first 9 months of 2020. With this production,
Romgaz has a 1.7% market share.
Relevant Financial Results (consolidated)
*RON million*
Q3 2020 Q2 2021 Q3 2021 <DELTA> Main indicators 9 months 9 months <DELTA>
Q3 (%) 2020 2021 9 months
(%)
725.0 922.8 1,246.5 71.93 Revenue 2,918.4 3,496.5 19.81
-------- -------- -------- ------------------------- --------- --------- ----------
771.3 1,002.1 1,469.7 90.55 Income 3,004.7 3,727.9 24.07
-------- -------- -------- ------------------------- --------- --------- ----------
607.7 662.0 1,023.0 68.34 Expenses 1,898.0 2,378.5 25.31
-------- -------- -------- ------------------------- --------- --------- ----------
Share of the associates'
0.3 (0.6) 0.8 149.70 result 0.2 0.01 -95.07
-------- -------- -------- ------------------------- --------- --------- ----------
163.8 339.6 447.5 173.21 Gross profit 1,106.9 1,349.4 21.92
-------- -------- -------- ------------------------- --------- --------- ----------
22.7 41.7 52.7 132.33 Profit tax 164.9 193.1 17.07
-------- -------- -------- ------------------------- --------- --------- ----------
141.1 297.8 394.8 179.78 Net profit 941.9 1,156.4 22.77
-------- -------- -------- ------------------------- --------- --------- ----------
150.8 326.8 435.7 188.92 EBIT 1,071.2 1,311.1 22.39
-------- -------- -------- ------------------------- --------- --------- ----------
326.0 489.9 621.7 90.69 EBITDA 1,539.3 1,807.3 17.41
-------- -------- -------- ------------------------- --------- --------- ----------
Earnings per share
0.37 0.8 1.02 179.78 (EPS(*) ) (RON) 2.4 3.0 22.77
-------- -------- -------- ------------------------- --------- --------- ----------
Net profit rate
19.46 32.27 31.67 62.73 (% from Revenue) 32.28 33.07 2.47
-------- -------- -------- ------------------------- --------- --------- ----------
EBIT ratio (% from
20.80 35.41 34.95 68.05 Revenue) 36.71 37.50 2.15
-------- -------- -------- ------------------------- --------- --------- ----------
EBITDA ratio (%
44.97 53.09 49.87 10.91 from Revenue) 52.74 51.69 -2.00
-------- -------- -------- ------------------------- --------- --------- ----------
Number of employees
at the end of the
6,201 6,066 5,918 -4.56 period 6,201 5,918 -4.56
-------- -------- -------- ------------------------- --------- --------- ----------
Figures in the above table are rounded, therefore small
differences may result upon reconciliation.
Note: income and expenses do not include in-house works
capitalized as non-current assets .
A brief overview of the Group's main indicators during the
nine-month period ended on September 30, 2021:
Ä Consolidated gross result for the reporting period is higher
by 21.92% as compared with the similar period of the previous year
(RON +242.6 million) due to the following influential factors:
-- Consolidated revenue recorded an increase of 19.81% (RON
578.1 million) compared with the similar period of 2020;
-- Revenues from natural gas sales increased by 25.64% (RON
+609.2 million), with a sold quantity higher by 26.4%. Revenues
from sales of gas purchased for resale increased by 2,379.4%,
namely RON 291.8 million, considering that the cost of gas
purchased for resale increased by RON 158.8 million;
-- Revenues from electricity increased by 27.5%;
-- consolidated revenue from underground storage activity
recorded a decrease by 30.07%; the unconsolidated revenue from
underground storage activity decreased by approximately 7% as
compared with the previous period;
-- in Q3 2021 the performance bond related to the works contract
for development of CTE Iernut by building a new 430 MW power plant
with, combined cycle gas turbine concluded between S.N.G.N. Romgaz
S.A. and the Duro Felguera S.A. and Romelectro S.A. consortium was
executed, generating an income of RON 114.6 million;
-- Romgaz received a final settlement in a litigation against ANAF (National Agency for Fiscal Administration) for cancelling a fiscal inspection report related to an inspection carried out between December 2016 - April 2017, which led to the recognition of an income of RON 28.02 million from offsetting the impairment set up for such receivables;
-- Royalty expenses increased by RON 214.2 million (+161.35%),
mainly as a result of the increase of the reference price used in
the calculation of this tax but also as a result of the increase of
production, while expenses with the windfall tax are higher by RON
29.0 million (+8.64%);
-- The increase of the price of greenhouse gas emission
certificates had a net negative impact of RON 105.8 million on the
results of the period ;
Ä Net profit is RON 1,156.4 million, higher by RON 214.5 million
than the one recorded in the previous period due to the above
mentioned reasons (+22.7%) ;
Ä Labour productivity increased by 25.54%, as compared to the
previous period, from RON 470.64 thousand revenue/employee in the
first 9 months of 2020 to RON 590.83 thousand revenue/employee in
the similar period of 2021;
Ä EPS is RON 3.0 , 22.70% higher than in the first 9 months of 2020;
Ä In Q3 2021 an amount of RON 94.1 million was received
representing financing from the National Investment Plan for the
construction of the new power plant in Iernut.
Operational Results
Q3 2020 Q2 2021 Q3 2021 <DELTA> Main Indicators 9 months 9 months <DELTA>
T3 (%) 2020 2021 9 months
(%)
Gas production
(million m(3)
952.0 1,207.7 1,187.3 24.7 ) 3,198 3,706 15.9
-------- -------- -------- ----------------------- --------- --------- ----------
Petroleum royalty
(million m(3)
64 84.1 84.0 31.3 ) 220 261 18.6
-------- -------- -------- ----------------------- --------- --------- ----------
Condensate production
5,349 6,515 6,528 22.0 (tons) 16,594 19,393 16.9
-------- -------- -------- ----------------------- --------- --------- ----------
Electricity production
322.63 1.0 222.99 -30.9 (GWh) 617.87 426.07 -31.0
-------- -------- -------- ----------------------- --------- --------- ----------
Invoiced UGS
withdrawal services
(million m(3)
0.3 130.8 25.3 8,326.7 ) 924.2 1,446.0 56.5
-------- -------- -------- ----------------------- --------- --------- ----------
Invoiced UGS
injection services
(million m(3)
444.5 556.6 1,070.9 33.2 ) 1,015.5 1,629.9 60.5
-------- -------- -------- ----------------------- --------- --------- ----------
Note: the information is not consolidated, transactions between
Romgaz and Depogaz are included.
During the first 9 months of 2021, Romgaz produced 3,706 million
m(3) of natural gas, 508 million m(3) (+15.9%) more than in the
same period of the previous year.
The level of gas production recorded in the first 9 months of
2021 was influenced by:
ü Implementation of actions to optimize exploitation of natural
gas reservoirs;
ü Continuation and extension of rehabilitation projects of the
main mature gas reservoirs;
ü Execution of well workover operations in low productivity or
inactive wells;
ü Completion of investments in the development of production
infrastructure and connection of new wells to this
infrastructure.
The volume of gas sold by Romgaz in the first 9 months of 2021,
representing deliveries to customers, without CET Iernut
consumption, recorded an estimated increase of 26.4% as compared
with the similar period of the previous year.
The volume of produced electricity as indicated 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*
2020 2021 Ratio
1 2 3 4=3/2x100
-------- -------- ----------
Quarter 1 258,923 202,073 78.04%
-------- -------- ----------
Quarter 2 36,310 1,010 2.78%
-------- -------- ----------
Quarter 3 322,633 222,989 69.11%
-------- -------- ----------
9 months 617,866 426,072 68.96%
-------- -------- ----------
The full version of the Quarterly Report on the
Economic-Financial Activity of Romgaz Group on September 30, 2021
(January - September 2021) and the Consolidated Condensed Interim
Financial Statements for the Nine-Month and Three-Month Periods
Ended September 30, 2020 (Unaudited), Prepared in Accordance with
International Accounting Standard 34, are available on company's
website www.romgaz.ro - Section Investors - Interim Reports and on
RNS website, at:
http://www.rns-pdf.londonstockexchange.com/rns/2107S_1-2021-11-12.pdf
[1] Romgaz Group consists of SNGN Romgaz SA (the
"Company"/"Romgaz") as parent company, Filiala de Înmagazinare Gaze
Naturale Depogaz Ploie ti SRL ("Depogaz"), subsidiary 100% owned by
Romgaz and its associates SC Depomure SA (40% of the share capital)
and SC Agri LNG Project Company SRL (25% of the share capital).
[2] Consumption is estimated as, at the date hereof, ANRE did
not publish the report on the natural gas market for August and
September 2021.
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