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    Romania's Romgaz Reports Dip in Profits in Q4


The company's results last year were weakened by a turnover tax, impairments and reduced gas production and power generation.

by: Joseph Murphy

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Romania's Romgaz Reports Dip in Profits in Q4

Net profits at Romania's state gas producer Romgaz were down 34.2% yr/yr in the fourth quarter at lei 243.2mn ($55mn), the London-listed company said in a stock filing on February 25. Core earnings (Ebitda) fell by 11.5% to lei 598.8mn, while revenues sank 17.3% to lei 1.29bn.

Full-year net profit was up 4.6% at lei 1.43bn, while core earnings increased by 14.3% to lei 2.56bn. Revenues grew 1.5% in lei 1.29bn.

Romgaz said its performance this year was affected by a 2% tax imposed on the turnover of gas producers. It also booked lei 391.3mn in asset impairments, mostly relating to unsuccessful wells including one at the offshore EX 30 Trident block, where it is partnered with Russia's Lukoil.

The company's gas production was 1.1% lower in 2019 at 5.277mn m3, while generation at the Iernut power station fell 49% in 2019, resulting in a 50.1% decline in electricity sales. On the other hand, Romgaz generated 4.4% more in revenues from overall gas sales last year, while also increasing turnover from gas storage services and gas condensate sales.