Romanian state-owned gas producer Romgaz Medias (SNG) reported a net profit of EUR 22 million in the third quarter of this year, down by 52% compared to the result in the same period of 2015. The company’s revenues went down by 21%, to EUR 124 million.

The company’s revenues were mainly impacted by the drop in internal demand and the increased share of cheaper import gas in the local consumption. While the price of domestic gas, which is set by the state, has remained high, the price of import gas has dropped significantly in the past months. The gas imports thus increased at the expense of local gas.

In the third quarter, Romgaz produced 836 million cubic meters of gas, down by 38% compared to the same period of 2015. In the first nine months, Romgaz’s production declined by 26%, to 3.03 billion cubic meters. This resulted in an 18% drop in revenues, to EUR 535 million, and a 27% decline in net profit, to EUR 159 million.

Romgaz also cut its investments by 58% in the first nine months of 2016, to EUR 85 mln.

However, the company announced its biggest onshore gas discovery the last 30 years, of about 25-27 billion cubic meters. The company had proven gas reserves of some 60.9 billion cubic meters and probable reserves of 10.6 billion cubic meters, according to a recent audit performed by American company DeGolyer&MacNaughton.

Romgaz is listed on the Bucharest Stock Exchange and London Stock Exchange. The company has a market capitalization of over EUR 2 billion. The company's full quarterly financial report is available here.

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editor@romania-insider.com