TIDMSNGR
RNS Number : 7745C
S.N.G.N. Romgaz S.A.
25 February 2022
IDENTIFICATION DETAILS ON REPORT AND ISSUER
Preliminary annual report according to art. 63 of Law
24/2017
Financial year: 2021
Report date: February 25, 2022
Name of the Company: Societatea Nationala de Gaze Naturale
(SNGN) ROMGAZ SA
Headquarters: Medias, 4 Constantin I. Motas Square, code
551130
Telephone/fax number: 004-0374-401020 / 004-0269-846901
Fiscal Code: RO14056826
LEI code: 2549009R7KJ38D9RW354
Trade Registry No: J32/392/2001
Subscribed and paid in share capital: RON 385,422,400
Regulated markets where the issued securities are traded:
Bucharest Stock Exchange (BVB), London Stock Exchange (LSE)
PRELIMINARY CONSOLIDATED ANNUAL REPORT
(issued based on unaudited consolidated financial information
prepared
in compliance with the International Financial Reporting
Standards)
ON THE ECONOMIC AND FINANCIAL ACTIVITY OF SNGN "ROMGAZ" SA GROUP ([1]) for 2021
OVERVIEW
SNGN Romgaz SA is a Romanian natural gas producer and supplier,
the main business segments of the Group being: gas exploration, gas
production and supply, underground gas storage and electricity
production.
Relevant Consolidated Financial Results
(RON million, unless otherwise specified)
Q4 2020 Q3 2021 Q4 2021 <DELTA> Main indicators 2020 2021 <DELTA>
p* Q4 (%) p* '21/'20
(%)
======== ======== ======== ======== ============================ ======== ======== =========
1,156.5 1,246.5 2,356.4 103.76 Revenue 4,074.9 5,852.9 43.63
======== ======== ======== ======== ============================ ======== ======== =========
1,129.2 1,469.7 2,428.6 115.07 Income 4,133.9 6,156.5 48.93
======== ======== ======== ======== ============================ ======== ======== =========
810.7 1,023.0 1,643.3 102.70 Expenses 2,708.7 4,021.8 48.48
======== ======== ======== ======== ============================ ======== ======== =========
Share of profit of
1.1 0.8 0.1 -93.35 associates 1.3 0.1 -93.61
======== ======== ======== ======== ============================ ======== ======== =========
319.7 447.5 785.4 145.70 Gross result: profit/(loss) 1,426.5 2,134.8 49.65
======== ======== ======== ======== ============================ ======== ======== =========
13.7 52.7 44.7 226.14 Profit tax 178.6 237.7 33.10
======== ======== ======== ======== ============================ ======== ======== =========
306.0 394.8 740.7 142.10 Net result: profit/(loss) 1,247.9 1,897.1 52.02
======== ======== ======== ======== ============================ ======== ======== =========
307.4 435.7 765.4 148.95 EBIT 1,378.7 2,076.4 50.61
======== ======== ======== ======== ============================ ======== ======== =========
511.4 621.7 958.9 87.51 EBITDA 2,050.7 2,766.3 34.89
======== ======== ======== ======== ============================ ======== ======== =========
Earnings per share
0.79 1.02 1.92 142.10 (EPS) (RON) 3.24 4.92 52.02
======== ======== ======== ======== ============================ ======== ======== =========
Net profit ratio
26.46 31.67 31.43 18.78 (% from Revenue) 30.62 32.41 5.85
======== ======== ======== ======== ============================ ======== ======== =========
EBIT ratio (% from
26.58 34.95 32.48 22.20 Revenue) 33.83 35.48 4.88
======== ======== ======== ======== ============================ ======== ======== =========
EBITDA ratio (% from
44.22 49.87 40.69 -7.98 Revenue) 50.33 47.26 -6.10
======== ======== ======== ======== ============================ ======== ======== =========
Number of employees
at the end of the
6,188 5,918 5,863 -5.25 period 6,188 5,863 -5.25
======== ======== ======== ======== ============================ ======== ======== =========
* p - preliminary
Figures in the above table are rounded; therefore, small
differences may result upon reconciliation.
Romgaz Group's preliminary performances for the year ended
December 31, 2021 were influenced by the following factors:
Ä Natural gas production estimated for 2021 was 5,028.5 mil.m(3)
, by 508.8 mil.m(3) higher than the production of the previous year
(+11.3%).
Ä Preliminary revenue for 2021: RON 5.85 billion (2020: RON 4.07
billion), higher by 43,63%, influenced by the following
factors:
o Quantity of natural gas sold (including gas purchased for
resale) is 12.7% higher in 2021 as compared to 2020. Estimated
revenue from natural gas sales for 2021 is RON 5.04 billion,
increasing by 52.41% as compared to the previous year;
o In Q4 2021, revenue from natural gas sales increased by
101.81% as compared to the previous quarter (+17.15%
quantitatively), and by 120.62% as compared to Q4 2020 (-15.64%
quantitatively);
o In 2021 storage activities recorded a decrease by 30.64% of
the revenue at group level, following 32.3% lower capacity
reservation services (RON -91.18 million) and a decrease by 31.48%
(RON -15.53 million) of injection services. As for Depogaz, revenue
from these services decreased by 6.14%;
o Revenue from electricity sales increased by 69.9% as compared
to last year (RON +132.31 million) against a 31.7% drop in
production as compared to last year. This revenue is due to the
high prices on centralised markets where the Group is active;
Ä In 2021, an income of RON 114.7 million was generated by
executing the performance guarantee 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 Consortium consisting of Duro Felguera S.A. and
Romelectro S.A.;
Ä Romgaz won in court a litigation against ANAF (National Agency
for Fiscal Administration) for the annulment of 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 releasing to income the impairment set up for such
receivable;
Ä Petroleum royalty expenses (including royalty for storage
activities) increased by RON 552.54 million as compared to the
previous year, namely by 280.65% (RON 749.4 million in 2021, as
compared to RON 196.9 million in 2020), mainly as a result of the
increase of the reference price considered for calculating royalty.
The increase in Q4 2021 as compared to the previous quarter was by
145.7%;
Ä Windfall tax increased in 2021 by RON 843.1 million (203.17%)
as compared to 2020. Compared to the previous quarter, windfall tax
rose by 491.48% in Q4 2021;
Ä The table below shows the petroleum royalty and windfall tax
related to revenues from sales of natural gas from the Group's
production:
Indicator Q3 2021 Q4 2021 2020 2021
p p
=================== ====== ======== ======== ======== ========
RON
Revenue mil 796.7 2,031.5 3,293.4 4,712.8
=================== ====== ======== ======== ======== ========
RON
Petroleum royalty mil 160.6 399.4 185.6 737.9
=================== ====== ======== ======== ======== ========
RON
Windfall tax mil 151.1 894.0 414.9 1,258.0
=================== ====== ======== ======== ======== ========
% from revenue % 39.1 63.7 18.2 42.4
=================== ====== ======== ======== ======== ========
Ä In 2021, the Group performed an impairment test for the gas
fields it operates. The increase of sales prices was mostly offset
by the increase of costs, especially of costs with petroleum
royalty and windfall tax, therefore the Group did not release to
income the losses from previous impairments.
Ä In 2021, the Group recorded a net gain from impairment of
receivables of RON 349.99 million, following collection of
receivables from clients under insolvency;
Ä The amount of RON 94.1 million was cashed in 2021,
representing financing from the National Investment Plan for
building the new Iernut power plant;
Ä Preliminary net profit for 2021: RON 1.90 billion (2020: net
profit RON 1.25 billion), increasing by 52.02%.
Ä The estimated Net Profit recorded in Q4 was RON 740.71
million, increasing by 87.63% as compared to Q3 2021.
Ä Consolidated net profit margins (32.41%), consolidated EBIT
(35.48%) and EBITDA (47.26%) increased as compared to 2020 (30.62%;
33.83 % and 50.33% respectively).
PHYSICAL INDICATORS
The table below shows the estimated volumes of gas production,
gas deliveries, gas injected in/withdrawn from underground
storages, gas used for power generation, electricity production and
injection/withdrawal services invoiced for the reviewed period:
( million m(3) , unless otherwise specified )
Q4 2020 Q3 Q4 2021 <DELTA> Description 2020 2021 <DELTA>
p Q4 (%) p '20/'19
(%)
2021
======== ======== ======== ======== ============================ ======== ======== =========
1. Total - gross
1,321.9 1,187.2 1,322.1 0.02 production 4,519.7 5,028.5 11.3
======== ======== ======== ======== ============================ ======== ======== =========
2. Technological
18.8 16.0 18.4 -2.13 consumption 63.7 69.9 9.7
======== ======== ======== ======== ============================ ======== ======== =========
3. Net internal gas
1,303.1 1,171.2 1,303.7 0.05 production (1.-2.) 4,456.0 4,958.6 11.3
======== ======== ======== ======== ============================ ======== ======== =========
4. Internal gas volumes
11.0 240.1 80.8 634.55 injected in storages 225.9 487.9 116.00
======== ======== ======== ======== ============================ ======== ======== =========
5. Internal gas volumes
216.9 - 43.5 -79.94 withdrawn from storages 367.8 422.2 14.8
======== ======== ======== ======== ============================ ======== ======== =========
6. Differences resulting
0.8 4.3 1.0 25.00 from GCV 6.4 8.6 34.4
======== ======== ======== ======== ============================ ======== ======== =========
7. Volumes supplied
from own production
1,508.2 926.8 1,265.4 -16.10 (3.-4+5.-6.) 4,591.5 4,884.3 6.4
======== ======== ======== ======== ============================ ======== ======== =========
8. Gas supplied to
Iernut and Cojocna
Power Plants from
92.3 71.4 65.6 -28.93 Romgaz gas 277.2 192.5 -30.6
======== ======== ======== ======== ============================ ======== ======== =========
9. Gas supplied
from own production
1,415.9 855.4 1,199.8 -15.26 to the market (7.-8.) 4,314.3 4,691.8 8.70
======== ======== ======== ======== ============================ ======== ======== =========
10. Natural gas from
19.1 6.6 6.1 -68.06 partnerships (Amromco) 91.4 35.4 -61.3
======== ======== ======== ======== ============================ ======== ======== =========
11. Purchased internal
gas volumes (imbalances
- 171.3 4.6 n/a included) 0.4 239.5 59,775.0
======== ======== ======== ======== ============================ ======== ======== =========
12. Sold internal
1,435.0 1,033.3 1,210.5 -15.64 gas volumes (9+10+11.) 4,406.1 4,966.7 12.7
======== ======== ======== ======== ============================ ======== ======== =========
13. Supplied internal
1,527.3 1,104.7 1,276.1 -16.45 gas volumes (8+12.) 4,683.3 5,159.2 10.2
======== ======== ======== ======== ============================ ======== ======== =========
14. Supplied import
- - - - volumes - - -
======== ======== ======== ======== ============================ ======== ======== =========
15. Gas supplied
to Iernut and Cojocna
Power Plants from
other sources (imbalances
0.3 0.3 0.1 -66.67 included) 4.7 8.4 78.7
======== ======== ======== ======== ============================ ======== ======== =========
16. Total gas supplies
1,527.6 1,105.0 1,276.2 -16.46 (13+14+15.) 4,688.0 5,167.6 10.2
======== ======== ======== ======== ============================ ======== ======== =========
Invoiced UGS withdrawal
services (million
892.5 25.3 663.2 -25.69 m(3) ) 1,816.7 2,109.2 16.1
======== ======== ======== ======== ============================ ======== ======== =========
Invoiced UGS injection
services (million
m(3) ) - volumes
99.6 1,070.9 192.0 92.77 invoiced by the subsidiary 1,115.1 1,821.9 63.4
======== ======== ======== ======== ============================ ======== ======== =========
Electricity production
319.6 223.0 213.9 -33.1 (GWh) 937.5 640.0 -31.7
======== ======== ======== ======== ============================ ======== ======== =========
ECONOMIC-FINANCIAL INDICATORS
The economic-financial indicators were calculated based on
unaudited preliminary consolidated financial statements and may be
different from the actual audited results.
The Group's revenue is mainly generated by the sale of natural
gas, underground gas storage services and electricity production
and sale.
Preliminary statement of consolidated comprehensive income
(unaudited)
(RON thousand)
Q4 2020 Q3 2021 Q4 2021 <DELTA> Description 2020 2021 p <DELTA>
p Q4 (%) '21/'20
(%)
========== ========== ============ ========= ========================= ============ ============ =========
1,156,469 1,246,498 2,356,397 103.76 Revenue 4,074,893 5,852,926 43.63
========== ========== ============ ========= ========================= ============ ============ =========
Cost of commodities
(4,935) (164,090) (34,025) 589.46 sold (18,617) (281,589) 1,412.54
========== ========== ============ ========= ========================= ============ ============ =========
Investment
12,233 11,802 20,038 63.80 income 47,845 58,403 22.07
========== ========== ============ ========= ========================= ============ ============ =========
Other gains
(823) (1,506) (2,984) 262.58 or losses (6,534) 23,388 n/a
========== ========== ============ ========= ========================= ============ ============ =========
Net (losses)/gains
from impairment
10,727 409 323,118 2,912.19 of trade receivables 17,551 349,989 1,894.13
========== ========== ============ ========= ========================= ============ ============ =========
Changes in
(48,168) 91,281 24,053 n/a inventory (16,151) 74,787 n/a
========== ========== ============ ========= ========================= ============ ============ =========
Raw materials
and consumables
(16,246) (17,944) (27,317) 68.15 used (58,282) (81,146) 39.23
========== ========== ============ ========= ========================= ============ ============ =========
Depreciation,
amortization
(203,985) (185,968) (193,584) -5.10 and net impairment (672,063) (689,842) 2.65
========== ========== ============ ========= ========================= ============ ============ =========
Employee benefit
(227,305) (206,590) (199,332) -12.31 expenses (767,251) (766,639) -0.08
========== ========== ============ ========= ========================= ============ ============ =========
(4,277) (4,128) (4,322) 1.05 Financial costs (17,000) (16,739) -1.54
========== ========== ============ ========= ========================= ============ ============ =========
Exploration
(1,931) (158) (346) -82.08 expense (26,509) (1,197) -95.48
========== ========== ============ ========= ========================= ============ ============ =========
Share of associates'
1,127 819 75 -93.35 result 1,330 85 -93.61
========== ========== ============ ========= ========================= ============ ============ =========
(361,229) (442,980) (1,504,501) 316.50 Other expenses (1,158,143) (2,557,446) 120.82
========== ========== ============ ========= ========================= ============ ============ =========
8,000 120,054 28,118 251.48 Other income 25,439 169,841 567.64
========== ========== ============ ========= ========================= ============ ============ =========
Profit before
319,657 447,499 785,388 145.70 tax 1,426,508 2,134,821 49.65
========== ========== ============ ========= ========================= ============ ============ =========
Income tax
(13,698) (52,717) (44,675) 226.14 expense (178,604) (237,725) 33.10
========== ========== ============ ========= ========================= ============ ============ =========
Profit for
305,959 394,782 740,713 142.10 the period 1,247,904 1,897,096 52.02
========== ========== ============ ========= ========================= ============ ============ =========
Other comprehensive
income Items
that will not
be reclassified
subsequently
to profit or
loss
Actuarial gains/(losses)
on post-employment
(16,877) - (37,123) 119.96 benefits (16,877) (37,123) 119.96
========== ========== ============ ========= ========================= ============ ============ =========
Income tax
related to
items that
will not be
reclassified
in the comprehensive
2,700 - 5,939 119.96 income 2,700 5,939 119,96
========== ========== ============ ========= ========================= ============ ============ =========
Total items
that will not
be reclassified
in the comprehensive
(14,177) - (31,184) 119.96 income (14,177) (31,184) 119.96
========== ========== ============ ========= ========================= ============ ============ =========
Other comprehensive
income for
the period
net of income
(14,177) - (31,184) 119.96 tax (14,177) (31,184) 119.96
========== ========== ============ ========= ========================= ============ ============ =========
Total comprehensive
income for
291,782 394,782 709,529 143.17 the period 1,233,727 1,865,912 51.24
========== ========== ============ ========= ========================= ============ ============ =========
Revenue
In 2021, Romgaz estimates consolidated revenues of RON 5.9
billion as compared to RON 4.1 billion achieved in 2020.
The increase resides in a 52.41% increase of revenue from sales
of gas produced by Romgaz and of gas purchased for resale as well
as a 69.9% increase of revenue from sales of electricity. On the
other hand, consolidated revenue from storage services decreased by
30.64%.
The main components of revenue are shown below:
(RON thousand)
Q4 2020 Q3 2021 Q4 2021 <DELTA> Description 2020 2021 p <DELTA>
p Q4 '21/'20
(%)
(%)
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
gas sold -
917,119 791,118 2,025,620 120.87 domestic production 3,226,448 4,685,389 45.22
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
gas sold -
12,310 5,541 5,892 -52.14 other arrangements 66,915 27,456 -58.97
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
gas acquired
for resale
- domestic
3,281 223,006 26,239 699.73 gas 15,545 330,309 2,024.86
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
storage services
- capacity
64,523 51,891 48,697 -24.53 reservation 282,363 191,184 -32.29
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
storage services
19,136 464 12,150 -36.51 - extraction 43,151 35,006 -18.88
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
storage services
11,469 20,348 3,546 -69.08 - injection 49,343 33,809 -31.48
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
75,022 102,893 175,951 134.53 electricity 189,289 321,596 69.90
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
47,216 34,569 40,997 -13.17 services 175,877 166,270 -5.46
============ ============= ========== ======== ===================== =============== ========== =========
Revenue from
4,474 14,661 15,337 242.80 sale of goods 18,192 53,959 196.61
============ ============= ========== ======== ===================== =============== ========== =========
1,919 2,007 1,968 2.55 Other revenues 7,770 7,948 2.29
1,156,469 1,246,498 2,356,397 103.76 Total revenue 4,074,893 5,852,926 43.63
============ ============= ========== ======== ===================== =============== ========== =========
Tariffs of storage services were:
- April 1, 2020 - March 31, 2021 storage cycle:
o Capacity reservation tariff: RON 7.58/MWh/annual cycle;
o Injection tariff: RON 3.67/MWh;
o Withdrawal tariff: RON 2.03/MWh.
- April 1, 2021 - March 31, 2022 storage cycle:
o Capacity reservation tariff: RON 9.31/MWh/annual cycle (a
22.82% increase);
o Injection tariff: RON 2.29/MWh (a 37.60% decrease);
o Withdrawal tariff: RON 1.74/MWh (a 14.29% decrease).
Please note that consolidated storage revenues include revenue
from services invoiced by Romgaz when gas is sold from storage;
non-consolidated storage revenue are down 6.14% compared to
2020.
As for volumes, compared with 2020, the Group estimates that in
2021:
- it sold 12.7% more gas (including gas acquired for resale);
- it provided gas withdrawal services from storages by 16.1%
higher, gas injection services in storages by 63.4% higher;
- it produced 31.7% less electricity.
Cost of commodities sold
In 2021, cost of commodities sold increased by 1,412.5% (+RON
263.0 million) as compared to previous year, mainly due to the
increase of gas quantity acquired on the domestic market for
resale. During this period, revenue from sale of such gas increased
by 2,024.9% (+RON 314.8 million).
Other gains and losses
Other net gains of RON 23.4 million include the income recorded
following a final settlement in favour of Romgaz in a litigation
against ANAF for cancelling a report issued further to a fiscal
investigation performed in December 2016 - April 2017. Following
this investigation, the Company paid RON 28.98 million representing
additional taxes and penalties that are going to be recovered. The
decisions of the court has not been communicated by the date of
this report so that the Company could not take the necessary steps
to recover the amounts.
Net losses/gains from impairment of trade receivables
The Group calculates impairments for trade receivables depending
on non-collection risks. Therefore, as regards clients undergoing a
bankruptcy procedure, the Group records losses from impairment for
the entire non-collected amount ; the same policy is applied to old
debts.
In 2021, the Group recorded a net gain from impairment of
receivables of RON 349.99 million after collecting old debts from
clients undergoing an insolvency procedure .
Changes in inventories
During 2021, the gas quantity injected by Romgaz in storages was
higher by 15.6% than the quantity withdrawn from storages, thus
generating positive changes in inventory. The quantity of gas
injected in storages by the Company in 2021 as compared to 2020
increased by 116% while the withdrawn quantity increased by
14.8%.
Raw materials and consumables used
Increase of expenses with raw materials and consumables is
mainly due to a 72.71% higher technological consumption for the
reviewed period of 2021 as compared to 2020 and due to the increase
of expenses with spare parts used for current repairs.
Depreciation, amortization and net impairment
Depreciation, amortization and impairment expenses increased by
2.65% due to an increase of 3.4% of depreciation and amortization
expenses and an increase of 1.08% of net impairment losses.
Due to existing market conditions, the Group considered
necessary to update the impairment test for assets used in natural
gas production activity. Considering that the increase of sale
prices generated a substantial increase in petroleum royalty costs
and windfall tax costs, the test did not result in the cancellation
of previously set up impairments. In 2021, the Group recorded
impairments only for specific assets as a result of abandoning
wells that proved to be dry holes or as a result of deciding to
stop operation in certain gas fields.
Exploration expenses
Exploration expenses recorded in 2021 of RON 1.2 million
decreased by 95.48% compared to the previous year, performing
significantly fewer surveys than in the previous period (-RON 24.5
million).
Government Decision No. 1011 of September 22, 2021, approved the
addendum no. 6 to the concession agreement concluded between ANRM
and Romgaz, extending the exploration period for eight petroleum
blocks until October 2027. Pursuant to this addendum, Romgaz
undertook to perform a certain minimum 3D seismic program that will
result in increased exploration expenses.
Other expenses
In 2021, other expenses increased by 120.82% as compared to
2020. The increase of RON 1.4 billion is mainly due to higher
windfall tax and royalties. Royalty expenses increased by RON
552.54 million (280.65%) compared to previous year and windfall tax
increased by RON 843.1 million (203.17%) in 2021 compared to
2020.
Other income
Other income increased by 567.64% in the year ended December 31,
2021 as compared to the same period of 2020 following execution of
the performance guarantee (RON 114.7 million) after terminating the
works contract for development of CTE Iernut by building a 430 MW
combined cycle gas-turbine power plant, concluded between S.N.G.N.
Romgaz S,A. and the Consortium consisting of Duro Felguera S.A. and
Romelectro S.A.
Preliminary Statement of Consolidated Financial Position
(unaudited)
(RON thousand)
INDICATOR December 31, December 31, <DELTA>
2020 2021 '21/'20
(%)
=============================== ============= ============= =========
ASSETS
=============================== ============= ============= =========
Non-current assets
=============================== ============= ============= =========
Tangible assets 5,613,122 5,313,000 -5.35
=============================== ============= ============= =========
Other intangible assets 14,774 16,133 9.20
=============================== ============= ============= =========
Investments in associates 26,102 26,187 0.33
=============================== ============= ============= =========
Deferred tax assets 275,328 273,235 -0.76
=============================== ============= ============= =========
Other financial assets 5,378 5,616 4.43
=============================== ============= ============= =========
Right of use assets 7,915 7,128 -9.94
=============================== ============= ============= =========
Total non-current assets 5,942,619 5,641,299 -5.07
=============================== ============= ============= =========
Current assets
=============================== ============= ============= =========
Inventories 244,563 305,242 24.81
=============================== ============= ============= =========
Trade and other receivables 592,875 1,352,345 128.10
=============================== ============= ============= =========
Contract costs 651 483 -25.81
=============================== ============= ============= =========
Other financial assets 1,995,523 417,923 -79.06
=============================== ============= ============= =========
Other assets 68,023 67,962 -0.09
=============================== ============= ============= =========
Cash and cash equivalents 416,913 3,580,412 758.79
=============================== ============= ============= =========
Total current assets 3,318,548 5,724,367 72.50
=============================== ============= ============= =========
TOTAL ASSETS 9,261,167 11,365,666 22.72
=============================== ============= ============= =========
EQUITY AND LIABILITIES
=============================== ============= =========
Equity
=============================== ============= ============= =========
Issued capital 385,422 385,422 0.00
=============================== ============= ============= =========
Reserves 2,251,909 2,999,104 33.18
=============================== ============= ============= =========
Retained earnings 5,149,919 5,578,730 8.33
=============================== ============= ============= =========
Total equity 7,787,250 8,963,256 15.10
=============================== ============= ============= =========
Non-current liabilities
=============================== ============= ============= =========
Retirement benefit obligation 128,690 156,427 21.55
=============================== ============= ============= =========
Deferred income 136,308 230,438 69.06
=============================== ============= ============= =========
Lease liability 7,845 7,211 -8.08
=============================== ============= ============= =========
Provisions 538,931 507,420 -5.85
=============================== ============= ============= =========
Total non-current liabilities 811,774 901,496 11.05
=============================== ============= ============= =========
Current liabilities
=============================== ============= ============= =========
Trade payables and other
liabilities 89,132 71,317 -19.99
=============================== ============= ============= =========
Contract liabilities 81,318 204,384 151.34
=============================== ============= ============= =========
Current tax liabilities 59,831 48,148 -19.53
=============================== ============= ============= =========
Deferred income 10,899 49 -99.55
=============================== ============= ============= =========
Provisions 156,415 237,304 51.71
=============================== ============= ============= =========
Lease liability 767 810 5.61
=============================== ============= ============= =========
Other liabilities 263,781 938,902 255.94
=============================== ============= ============= =========
Total current liabilities 662,143 1,500,914 126.68
=============================== ============= ============= =========
TOTAL LIABILITIES 1,473,917 2,402,410 62.99
=============================== ============= ============= =========
TOTAL EQUITY AND LIABILITIES 9,261,167 11,365,666 22.72
=============================== ============= ============= =========
NON CURRENT ASSETS
The total of non-current assets decreased by 5.07% by the end of
2021 as compared to the end of 2020, meaning by RON 301.3 million.
The decrease is due to depreciation, amortisation and impairment
expenses for projects larger than investments during 2021 and due
to the decrease of the decommissioning asset as a result of the
reduction of the decommissioning provision of wells.
In 2021, the Group invested a total of RON 458.17 million,
representing 34.13% of the investment budget.
CURRENT ASSETS
Current assets increased by 2,405.8 million on December 31, 2021
due to the increase of cash, cash equivalents and other financial
assets by RON 1,585.9 million; this increase is due to a lower
level of investments as compared to the previous year. The Group
intends to use this additional amount for the investments set out
in the strategy approved by shareholders.
Inventories
Inventories increased by 24.81% by the end of 2021 as compared
to December 31, 2020.
During 2021, a gas quantity of 487.9 million m(3) was injected
by Romgaz in the underground gas storages, while the withdrawn gas
quantity was of 422.2 million m(3) .
Trade and other receivables
Trade receivables increased in 2021 as compared to December 31,
2020 by 128.1% as a result of the increase in the gas price on the
free market. In addition, the Group recorded a net decrease in
impairment of trade receivables by RON 349.99 million due to
collection of outstanding amounts in 2021 and 2022 (event
subsequent to 2021).
NON-CURRENT LIABILITIES
At the end of 2021 non-current liabilities increased by 11.05%
as compared to December 31, 2020.
In 2021, an additional amount of RON 94.1 million was collected
from the National Investment Plan to finance the investment
"Combined cycle with gas turbines" - Iernut (the amount is shown as
"Deferred Income"). Also in 2021, the Romanian Government decided
to extend the completion date of the investment until June 30,
2022, extending the reimbursement term from the National Investment
Plan until December 31, 2022.
CURRENT LIABILITIES
Current liabilities increased by RON 838.77 million, from RON
662.14 million recorded on December 31, 2020 to RON 1,500.91
million at the end of 2021.
Trade payables and other liabilities
Trade payables decreased by 19.99% as compared to December 31,
2020 due to lower payables to non-current assets suppliers (-RON
15.69 million) as a result of the lower level of investments in
2021.
Contract liabilities
These liabilities represent advances received from customers on
December 31, 2021 for 2022 deliveries. The rise is due to the
increase of the gas sales price as compared to the previous
year.
Other liabilities
Other liabilities recorded a significant increase of 255.94% as
compared to December 31, 2020. Most of these liabilities are
liabilities to petroleum royalty due for Q4 and windfall tax for
deliveries in December.
Provisions
On December 31, 2021, current provisions recorded an increase of
51.71% as compared to December 31, 2020. This increase is due,
mainly, to the provision for greenhouse gas emission certificates
(RON 154.9 million on December 31, 2021, the equivalent of 377,905
certificates, as compared to RON 81.2 million on December 31, 2020,
the equivalent of 525,067 certificates).
CAPITAL AND RESERVES
Group's equity increased by 15.10%. The changes in the Group's
equity in 2021 and 2020 are presented below:
(RON thousand)
Description Share capital Legal reserve Other Retained Total
reserves earnings
===================== ============== ============== ========== =========== ==========
Balance as of
January 1, 2021 385,422 83,537 2,168,372 5,149,919 7,787,250
===================== ============== ============== ========== =========== ==========
Allocation to
dividends - - - (689,906) (689,906)
===================== ============== ============== ========== =========== ==========
Increase in legal
reserves - 1,713 - (1,713) -
===================== ============== ============== ========== =========== ==========
Allocation to
other reserves - - 675,203 (675,203) -
===================== ============== ============== ========== =========== ==========
Profit for the
year - - - 1,897,096 1,897,096
===================== ============== ============== ========== =========== ==========
Reinvested profit
reserves - - 70,279 (70,279) -
===================== ============== ============== ========== =========== ==========
Other comprehensive
income - - - (31,184) (31,184)
===================== ============== ============== ========== =========== ==========
Balance as of
December 31, 2021 385,422 85,250 2,913,854 5,578,730 8,963,256
===================== ============== ============== ========== =========== ==========
(RON thousand)
Description Share capital Legal reserve Other Retained Total
reserves earnings
===================== ============== ============== ========== ========== ==========
Balance as of
January 1, 2020 385,422 79,921 1,507,488 5,201,222 7,174,053
===================== ============== ============== ========== ========== ==========
Allocation to
dividends - - - (620,530) (620,530)
===================== ============== ============== ========== ========== ==========
Increase in legal
reserves - 3,616 - (3,616) -
===================== ============== ============== ========== ========== ==========
Allocation to
other reserves - - 598,840 (598,840) -
===================== ============== ============== ========== ========== ==========
Profit for the
year - - - 1,247,904 1,247,904
===================== ============== ============== ========== ========== ==========
Reinvested profit
reserves - - 62,044 (62,044) -
===================== ============== ============== ========== ========== ==========
Other comprehensive
income - - - (14,177) (14,177)
===================== ============== ============== ========== ========== ==========
Balance as of
December 31, 2020 385,422 83,537 2,168,372 5,149,919 7,787,250
===================== ============== ============== ========== ========== ==========
Preliminary Statement of Consolidated Statement of cash flows
(unaudited)
The consolidated cash flows for January-December 2021 and the
similar period of 2020 are as follows:
(RON thousand)
INDICATOR 2020 2021 p <DELTA>
'21/'20
(%)
=================================== ============ ============ =========
Cash flows from operating
activities
Net profit for year 1,247,904 1,897,096 52.02
=================================== ============ ============ =========
Adjustments for:
=================================== ============ ============ =========
Income tax expense 178,604 237,725 33.10
=================================== ============ ============ =========
Share of associates' result (1,330) (85) -93.61
=================================== ============ ============ =========
Interest expense 593 557 -6.07
=================================== ============ ============ =========
Unwinding of decommissioning
provision 16,407 16,182 -1.37
=================================== ============ ============ =========
Interest income (47,845) (58,403) 22.07
=================================== ============ ============ =========
Loss on disposal of non-current
assets 7 (321) n/a
=================================== ============ ============ =========
Change in decommissioning
provision recognized in
the result of the period,
other than unwinding 24,273 (2,428) n/a
=================================== ============ ============ =========
Change in other provisions 66,467 68,617 3.23
=================================== ============ ============ =========
Impairment of exploration
assets 97,695 37,046 -62.08
=================================== ============ ============ =========
Exploration projects written-off 836 33 -96.05
=================================== ============ ============ =========
Net impairment of non-current
assets 125,997 189,062 50.05
=================================== ============ ============ =========
Depreciation and amortization 448,371 463,734 3.43
=================================== ============ ============ =========
Amortization of contract
costs 795 1,626 104.53
=================================== ============ ============ =========
(Gain)/loss on financial
investments at fair value
through profit or loss 10 10 0.00
=================================== ============ ============ =========
Loss/(Gain) on trade receivables
and other receivables (19,700) (378,352) 1,820.57
=================================== ============ ============ =========
Net impairment of inventories 8,427 5,014 -40.50
=================================== ============ ============ =========
Income from liabilities
written-off (368) (810) 120.11
=================================== ============ ============ =========
Income from subsidies (7) (7) 0.00
=================================== ============ ============ =========
Cash generated from operational
activities before movements
in working capital 2,147,136 2,476,296 15.33
=================================== ============ ============ =========
Movements in working capital
=================================== ============ ============ =========
(Increase)/Decrease in
inventories 58,516 (64,914) n/a
=================================== ============ ============ =========
(Increase)/Decrease in
trade and other receivables 38,311 (400,838) n/a
=================================== ============ ============ =========
Increase/(Decrease) in
trade and other liabilities 17,600 790,345 4,390.60
=================================== ============ ============ =========
Cash generated by operational
activities 2,261,563 2,800,889 23.85
=================================== ============ ============ =========
Interest paid (3) (3) -
=================================== ============ ============ =========
Income tax paid (224,796) (233,084) 3.69
=================================== ============ ============ =========
Net cash generated by operational
activities 2,036,764 2,567,802 26.07
=================================== ============ ============ =========
Cash flows from investing
activities
=================================== ============ ============ =========
Investments in other entities - (250) n/a
=================================== ============ ============ =========
Bank deposits set up and
acquisition of state bonds (2,964,757) (3,896,521) 31.43
=================================== ============ ============ =========
Bank deposits and state
bonds matured 2,060,925 5,463,332 165.09
=================================== ============ ============ =========
Interest received 38,601 58,340 51.14
=================================== ============ ============ =========
Proceeds from sale of non-current
assets 1,733 513 -70.40
=================================== ============ ============ =========
Proceeds from disposal
of other financial investments - 2 n/a
=================================== ============ ============ =========
Acquisition of non-current
assets (547,215) (340,695) -37.74
=================================== ============ ============ =========
Acquisition of exploration
assets (66,516) (91,865) 38.11
=================================== ============ ============ =========
Net cash (used in)/generated
by investing activities (1,477,229) 1,192,856 n/a
=================================== ============ ============ =========
Cash flows from financing
activities
Dividends paid (620,346) (690,027) 11.23
=================================== ============ ============ =========
Subsidies received 115,027 94,148 -18.15
=================================== ============ ============ =========
Subsidies reimbursed (50) - -100.00
=================================== ============ ============ =========
Lease payments (1,196) (1,280) 7.02
=================================== ============ ============ =========
Net cash used in financing
activities (506,565) (597,159) 17.88
=================================== ============ ============ =========
Increase/(decrease) in
net cash and cash equivalents 52,970 3,163,499 5,872.25
=================================== ============ ============ =========
Net cash and cash equivalents
at the beginning of the
year 363,943 416,913 14.55
=================================== ============ ============ =========
Cash and cash equivalents
at the end of the year 416,913 3,580,412 758.79
=================================== ============ ============ =========
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Aristotel Marius JUDE R zvan POPESCU
[1] Romgaz Group consists of SNGN Romgaz SA ("the
Company"/"Romgaz") as parent company, SNGN Romgaz SA - Filiala de
Înmagazinare Gaze Naturale Depogaz Ploie ti SRL ("Depogaz"),
subsidiary owned 100% by Romgaz, and its associates SC Depomures SA
(40% of the share capital) and SC Agri LNG Project Company SRL (25%
of the share capital)
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END
FR FLFIDFAISFIF
(END) Dow Jones Newswires
February 25, 2022 02:00 ET (07:00 GMT)
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