Last checked at 14 Aug 2015 07:05
HALF YEAR REPORT
on Economic - Financial Activity of S.N.G.N. ROMGAZ S.A.
as of June 30, 2015
(January 1, 2015 - June 30, 2015)
IDENTIFICATION DETAILS ON REPORT AND ISSUER
Report based on: | Article 227 of Law no. 297/2004 on capital market and Annex no. 31 of CNVM Regulation no. 1/2006 for the six-month period ended as of June 30, 2015 (H1 of the Financial Year 2015) |
Report Date: | August 14, 2015 |
Name of the Company: | Societatea Nationala de Gaze Naturale "ROMGAZ" S.A. |
Headquarter: | Medias, 4 Piata Constantin I. Motas, code 551130, County Sibiu |
Telephone/fax number: | 0040 269 201020 / 0040 269 846901 |
Web/E-mail: | www.romgaz.ro / secretariat@romgaz.ro |
Fiscal Code: | 14056826 |
Trade Registry No: | J32/392/2001 |
Subscribed and paid in share capital: |
RON 385,422,400 |
Number of shares: | 385,422,400 , each having a nominal value of RON 1 |
Regulated markets where the issued securities are traded: |
Bucharest Stock Exchange BVB (shares), London Stock Exchange (GDRs) |
COMPANY PERFORMANCES
The Company's operational and financial performances for H1 of 2015 are in accordance with planned performances by means of revenue and total income, due to achieving and even exceeding the budgeted total value for natural gas delivered - in the core activity of the company.
The revenue is in line with the approved budget. The total expenses are higher due to the adjustment for impairment of receivables of RON 185.3 million, that led to a net profit of RON 766.6 million, the company maintaining its extremely favourable profit margins.
As compared to the same period of the previous year, the company's performances were mainly influenced by the decrease of natural gas demand on the Romanian market by approx. 6%.
Relevant Financial Result
*million RON*
Q2 2014 | Q1 2015 | Q2 2015 | Δ Q2 (%) | Main Indicators | H1 2014 | H1 2015 | Δ H1 (%) |
1,077.0 | 1,365.5 | 869.6 | -19.3 | Revenue | 2,526.3 | 2,235.1 | -11.5 |
1,180.4 | 1,299.5 | 941.6 | -20.2 | Income | 2,560.3 | 2,241.2 | -12.5 |
823.4 | 620.5 | 668.6 | -18.8 | Expenses | 1,470.7 | 1,289.1 | -12.3 |
356.9 | 679.1 | 273.1 | -23.5 | Gross Profit | 1,089.5 | 952.1 | -12.6 |
94.3 | 116.0 | 69.5 | -26.3 | Profit Tax | 218.6 | 185.5 | -15.1 |
262.6 | 563.0 | 203.6 | -22.5 | Net Profit | 871.0 | 766.6 | -12.0 |
958.2 | 649.2 | 577.8 | -39.7 | Cash flow from operational activities | 1,645.2 | 1,227.0 | -25.4 |
333.1 | 665.5 | 261.4 | -21.5 | EBIT | 1,048.1 | 926.8 | -11.6 |
555.6 | 841.8 | 381.8 | -31.3 | EBITDA | 1,414.4 | 1,223.7 | -13.5 |
0.68 | 1.46 | 0.53 | -22.5 | EPS (RON) | 2.26 | 1.99 | -12.0 |
24.39 | 41.2 | 23.41 | -4.0 | Net Profit Rate (% from Revenue) | 34.48 | 34.30 | -0.5 |
30.93 | 48.7 | 30.05 | -2.8 | EBIT Ratio (% from Revenue) | 41.49 | 41.47 | -0.1 |
51.59 | 61.6 | 43.91 | -14.9 | EBITDA Ratio (% from Revenue) | 55.99 | 54.75 | -2.2 |
6,391 | 6,340 | 6,332 | -0.9 | Number of employees at the end of the period | 6,391 | 6,332 | -0.9 |
Note: income and expenses do not include in-house works capitalized as non-current assets.
Summary of main indicators:
~ Total Income represents 99.9% of the planned income for H1 of 2015. The quarterly evolution shows the seasonable demand, emphasized by warm weather during May and June, and also the decrease of natural gas demand, especially from the chemical fertilisers industry, which led to a decrease of the production of natural gas delivered and implicitly to a lower revenue, operating income and profit than expected;
~ Although the net profit, EBIT and EBITDA are lower as compared to H1 2014, when the Company recorded the best results ever, the financial indicator ratios as compared to revenue do not record significant deviations and are highly favourable: 34.3%, 41.5% and 54.7% (as compared to 34.5%, 41.5% and 56.0%, respectively during H1 of 2014), confirming the high profitability of the company;
~ EPS (earnings per share) is RON 1.99.
Operational Results
Q2 2014 | Q1 2015 | Q2 2015 | Δ Q2 (%) | Main Indicators | H1 2014 | H1 2015 | Δ H1 (%) |
1,401.9 | 1,436.1 | 1,340.6 | -4.4 | Gas Produced (million cm) | 2,865.6 | 2,776.7 | -3.1 |
1,360.0 | 1,708.6 | 1,183.7 | -13.0 | Gas delivered from domestic production (million cm) *) | 3,205.5 | 2,877.1 | -10.2 |
4.8 | 2.2 | 0.0 | - | Delivered import gas (million cm) | 69.9 | 2.2 | -96.9 |
1,364.8 | 1,710.8 | 1,183.7 | -13.3 | Total gas delivered (million cm) | 3,275.4 | 2,879.3 | -12.1 |
103.1 | 104.5 | 97.3 | -5.6 | Petroleum Royalty (million cm) | 211.8 | 201.7 | -4.8 |
1,122 | 1,912 | 3,600 | +220.9 | Condensate Production (tonnes) | 2,159 | 5,512 | +155.3 |
384.9 | 145.7 | 264.5 | -31.3 | Electricity delivered (GWh) | 820.5 | 410.2 | -50.0 |
29.5 | 1,151.2 | 38.9 | -31.9 | UGS gas withdrawn services (million cm) | 1,169.4 | 1,190.1 | +1.8 |
569.5 | 292.2 | 438.9 | -22.9 | UGS gas injection services (million cm) | 609.6 | 731.1 | +19.9 |
*) - includes gas from current production, own gas withdrawn from UGS and acquired domestic gas and also includes gas delivered to Iernut and Cojocna.
Gas production was in the parameters expected when preparing the program for 2015, the achieved level representing 99.18% of the planned one. The quarterly evolution of gas production shows the seasonable demand, being potentiated by warm weather during May and June.
Romgaz produced 2,777 million cm of natural gas during the first half of 2015, with 89 million cm (3.1%) less than gas produced in the same period of the previous year.
The major decrease of demand in the chemical fertiliser sector and the decrease of electric power production, the delay of the regulations on minimum inventories for the 2015 - 2016 winter, the lack of will to comply with regulations of the main actors in natural gas sector due to the uncertainties on carrying out the price liberalization process, the entering into insolvency of some customers represented the determining factors.
By entering into production of Frasin - Gura Humorului and Caragele discoveries, the production of condensate recorded a major growth (155%) during H1 of 2015, with a quantity of approximately 5,500 tonnes.
The electric power quantity is lower due to (1) operation with a single energy group during Q1 in order to release the quantity of natural gas (approx. 65 million m3) necessary to cover the natural gas consumption during winter due to a major decrease of imported gas and (2) disadvantageous period during Q2 when the increased hydropotential and the boost of windpower have resulted in price discounts; all of these resulted in (3) a decrease in the Romanian power consumption by 5% during H1 of 2015 as compared to the same period of the previous year.
The full version of H1 2015 Report and the Interim Financial Statements (revised) for H1 2015 are available on company's website, link: http://www.romgaz.ro/en/investor-relations/interim-reports.html and on RNS website at:
http://www.rns-pdf.londonstockexchange.com/rns/0694W_-2015-8-14.pdf