SNGN ROMGAZ SA

SNG
End-of-day quote. End-of-day quote  - 01/20
36.2RON -0.14%

Quarterly Report (Q3-2021) and Financial Statements at September 30, 2021

11/12/2021 | 01:37am

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 Naţională de Gaze Naturale "ROMGAZ"

SA

Headquarters

Mediaş, Piaţa Constantin I. Motaş, nr.4, cod 551130,

judeţul Sibiu

Telephone/fax number

0040 374 401020 / 0040 269 846901

Web/E-mail

www.romgaz.ro/ secretariat@romgaz.ro

Registration Number

with the

J32/392/2001

Office of the Trade Registry

Fiscal Code

RO14056826

Legal Entity Identifier (LEI)

2549009R7KJ38D9RW354

Regulated market where

company

Bucharest Stock Exchange (shares) and London Stock

shares are traded

Exchange (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 dematerialized and free tradable since November 12, 2013 as SNG - for shares and SNGR - for GDRs

ROMGAZ GROUP PERFORMANCES1

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 3rd 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.

1 Romgaz Group consists of SNGN Romgaz SA (the "Company"/"Romgaz") as parent company, Filiala de Înmagazinare Gaze Naturale Depogaz Ploiești SRL ("Depogaz"), subsidiary 100% owned by Romgaz and its associates SC Depomureş SA (40% of the share capital) and SC Agri LNG Project Company SRL (25% of the share capital).

Romgaz - Report for Q3 2021

Page - 2 -

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 m3, higher by 15.9%, namely 508.7 million m3, 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.

*RON million*

Q3

Q2

Q3

2020

2021

2021

Q3

Main indicators

9

9

9

(%)

months

months

months

2020

2021

(%)

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

0.3

(0.6)

0.8

149.70

Share of the associates' 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

0.37

0.8

1.02

179.78

Earnings per share (EPS*))

(RON)

19.46

32.27

31.67

62.73

Net profit rate (% from Revenue)

20.80

35.41

34.95

68.05

EBIT ratio (% from Revenue)

44.97

53.09

49.87

10.91

EBITDA ratio (% from

Revenue)

6,201

6,066

5,918

-4.56

Number of employees at the end

of the period

2.4

3.0

22.77

32.28 33.07 2.47

36.71 37.50 2.15

52.74 51.69 -2.00

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:

  • 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;

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.

Romgaz - Report for Q3 2021

Page - 3 -

    • 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;
  • 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%);
  • 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;
  • EPS is RON 3.0, 22.70% higher than in the first 9 months of 2020;
  • 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.

Q3

Q2

Q3

T3

Main Indicators

9

9

9

2020

2021

2021

(%)

months

months

months

2020

2021

(%)

952.0

1,207.7

1,187.3

24.7

Gas production (million m3)

3,198

3,706

15.9

64

84.1

84.0

31.3

Petroleum royalty (million m3)

220

261

18.6

5,349

6,515

6,528

22.0

Condensate production (tons)

16,594

19,393

16.9

322.63

1.0

222.99

-30.9

Electricity production (GWh)

617.87

426.07

-31.0

0.3

130.8

25.3

8,326.7

Invoiced UGS withdrawal services

924.2

1,446.0

56.5

(million m3)

444.5

556.6

1,070.9

33.2

Invoiced UGS injection services

1,015.5

1,629.9

60.5

(million m3)

Romgaz - Report for Q3 2021

Page - 4 -

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 m3 of natural gas, 508 million m3 (+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:

  • Implementation of actions to optimize exploitation of natural gas reservoirs;
  • Continuation and extension of rehabilitation projects of the main mature gas reservoirs;
  • Execution of well workover operations in low productivity or inactive wells;
  • 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%

Romgaz - Report for Q3 2021

Page - 5 -

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

SNGN Romgaz SA published this content on 12 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2021 06:36:04 UTC.

© Publicnow 2022
Copier lien
All news about SNGN ROMGAZ SA
5h ago
6h ago
6h ago
6d ago
01/10