PRELIMINARY CONSOLIDATED
ANNUAL REPORT ON THE ECONOMIC FINANCIAL ACTIVITY OF ROMGAZ GROUP ON
DECEMBER 31, 2023
(January 01, 2023 - December
31, 2023)
IDENTIFICATION DETAILS ON REPORT AND ISSUER
Report based on
|
Law No. 24/2017 on issuers of financial instruments and market
operations (Art.63) for the
twelve-month period ended December 31, 2023
|
Report Date
|
February 28, 2024
|
Company Name
|
Societatea Nationala de Gaze
Naturale "ROMGAZ" SA
|
Headquarters
|
Medias, Piata Constantin I. Motas 4,
551130, Sibiu
|
Telephone/fax number
|
004 0374 401020 / 004
0374474325
|
Web/E-mail
|
www.romgaz.ro / 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 (Global Depositary Receipts -
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 dematerialised and free tradable since November 12,
2013, as SNG - for shares and SNGR - for GDRs
|
OVERVIEW
S.N.G.N. Romgaz S.A. is a Romanian
natural gas producer and supplier, the main business segments of
the Romgaz Group[1] being: gas exploration,
gas production and supply, underground gas storage and electricity
production.
Relevant Consolidated
Financial Results
(RON million, unless otherwise
specified)
Q4 2022
|
Q3 2023
|
Q4 2023 p*
|
Δ Q4 (%)
|
Main
indicators
|
|
2022
|
2023
p*
|
Δ '23/'22
(%)
|
2,547.1
|
1,913.0
|
2,191.6
|
-13.96
|
Revenue
|
|
13,359.7
|
9,001.9
|
-32.62
|
2,604.3
|
2,065.7
|
2,171.4
|
-16.62
|
Income
|
|
13,658.1
|
9,362.7
|
-31.45
|
1,120.5
|
1,025.3
|
1,153.3
|
2.93
|
Expenses
|
|
9,506.2
|
4,300.1
|
-54.77
|
0.7
|
1.7
|
1.6
|
128.57
|
Share of
profit of associates
|
|
2.4
|
4.9
|
104.17
|
1,484.5
|
1,042.1
|
1,019.6
|
-31.32
|
Gross result:
profit/(loss)
|
|
4,154.2
|
5,067.5
|
21.98
|
1,175.6
|
559.0
|
376.2
|
-68.00
|
Profit
tax
|
|
1,607.5
|
2,255.4
|
40.30
|
308.9
|
483.1
|
643.4
|
108.29
|
Net result:
profit/(loss)
|
|
2,546.7
|
2,812.1
|
10.42
|
1,457.2
|
1,007.7
|
991.4
|
-31.97
|
EBIT
|
|
3,982.3
|
4,897.6
|
22.98
|
1,637.3
|
1,114.9
|
1,099.7
|
-32.83
|
EBITDA
|
|
4,532.4
|
5,374.2
|
18.57
|
0.8
|
1.3
|
1.7
|
108.29
|
Earnings
per share (EPS) (RON)
|
|
6.6
|
7.3
|
10.42
|
12.13
|
25.25
|
29.36
|
142.04
|
Net
profit ratio (% from Revenue)
|
|
19.06
|
31.24
|
63.90
|
57.21
|
52.68
|
45.23
|
-20.94
|
EBIT
ratio (% from Revenue)
|
|
29.81
|
54.41
|
82.52
|
64.28
|
58.28
|
50.18
|
-21.94
|
EBITDA
ratio (% from Revenue)
|
|
33.93
|
59.70
|
75.95
|
5,971
|
5,951
|
5,980
|
0.15
|
Number of
employees at the end of the period
|
|
5,971
|
5,980
|
0.15
|
*
p - preliminary
The figures above are rounded, therefore small differences may
result upon reconciliation. The results shown in this report are
not audited; final results may
differ.
Romgaz Group's preliminary
performances for the year ended December 31, 2023 were influenced
by the following factors:
· Natural gas
production estimated for 2023 is
4,788.5 million
m3, by 147.4 million m3 lower than the
production of the previous year (-2.99%).
·
Total revenue is lower by RON
4,295.4 million, recording a drop of 31.45% due to the following
factors:
o decrease of revenues from natural gas sales (RON 7,766.97
million in 2023 as compared to RON 11,306.97 million in the
previous year); the obligation enforced by GEO No. 27/2022 had a
significant impact that led to the drop of 31.31% of revenues from
gas sales, therefore Romgaz sold most of production at the
regulated price of RON 150/MWh (86.43% of deliveries);
o electricity revenues also dropped (RON 406.98 million in 2023
as compared to RON 1,330.61 million in the previous year).
According to GEO No.27/2022, as of 2023, Romgaz sold almost all
electricity production at RON 450/MWh;
o revenue from underground storage activities increased by
17.66% (RON 552.19 million in 2023, as compared to RON 469.33
million in 2022), mainly due to the increase of capacities booked
by clients for underground gas storage;
· Total expenses decreased by 54.77% as compared to last year,
mainly due to the decrease of windfall tax on revenues from natural
gas (RON -4,014.05 million) and royalty expenses (RON ‑1,039.56
million). The Group recorded in January-December 2022 expenses of
RON 403.80 million with the windfall tax on electricity sales,
which became subsequently a contribution to the energy transition
fund; taking into account that 90% electricity was sold at 450
RON/MWh, this contribution is insignificant for the reviewed
period;
· Increase of the consolidated gross profit by 21.98% as
compared to the similar period of the previous year was offset by
the profit tax. Profit tax includes the solidarity contribution
introduced at the end of 2022, for years 2022-2023. In 2023, the
expense recorded with this contribution is RON 1,687.37 million, an
increase by RON 684.58 million as compared to the previous
year;
· Preliminary net
profit for 2023: RON 2.81
billion (2022: net profit RON 2.55
billion) increase of 10.42%;
· Achieved net consolidated profit margins (31.24%),
consolidated EBIT (54.41%) and EBITDA (59.70%) strengthened as
compared to 2022 (19.06%; 29.81% and 33.93% respectively). The
increase is due to lower royalty expenses (RON 600.52 million in
2023 as compared to RON 1,640.08 million in 2022) and to lower
expense with the windfall tax from gas sales (RON 889.80 million in
2023 as compared to RON 4,903.85 million in 2022), as a result of
enforcing provisions of GEO No. 27/2022. According to this
ordinance, natural gas quantities sold at RON 150/MWh are exempted
from payment of windfall tax, and royalty is calculated and paid at
this price, and not at the reference price communicated monthly by
the National Agency for Mineral Resources.
The full version of the
Preliminary Consolidated Annual Report on the Economic Financial
Activity of Romgaz Group on December 31, 2023 (January 01, 2023 -
December 31, 2023) is available on company's
website www.romgaz.ro - Investors - Annual Reports and
on Bucharest Stock Exchange website, at the link
bellow.
http://www.rns-pdf.londonstockexchange.com/rns/7572E_1-2024-2-28.pdf