Last checked at 14 May 2021 07:00
QUARTERLY REPORT
ON THE ECONOMIC-FINANCIAL ACTIVITY OF ROMGAZ GROUP
ON MARCH 31, 2021 (January 01, 2021 - March 31, 2021)
IDENTIFICATION DETAILS ON REPORT AND ISSUER
Report Basis | Law no. 24/2017 on issuers of financial instruments and market operations (Article 67) and ASF Regulation no.5/2018 on issuers of financial instruments and market operations (Annex 13) for the three-month period ended on March 31, 2021 |
Report Date | May 14, 2021 |
Name of the Company | Societatea Nationala de Gaze Naturale "ROMGAZ" SA |
Headquarters | Medias 551130, 4 Constantin I. Motas Square, Sibiu County |
Telephone/Fax number | 004 0374401020 / 004 0374474325 |
Web/E-mail | www.romgaz.ro / secretariat@romgaz.ro |
Fiscal Code | RO 14056826 |
Trade Registry No. | J32/392/2001 |
Legal Entity Identifier (LEI) | 2549009R7KJ38D9RW354 |
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 GDR's |
Regulated market where the company's shares are traded | Bucharest Stock Exchange (shares) and London Stock Exchange (GDRs) |
ROMGAZ GROUP1 PERFORMANCES
Romgaz Group recorded in Q1 2021 a revenue of RON 1,327.2 million, decreasing by 7.21%, namely RON 103.1 million, as compared to the revenue recorded in Q1 2020. However, Romgaz supplied in Q1 2021 gas quantities higher by 14.12% than in Q1 2020.
In 2021 Romgaz Group collected part of the receivables impaired at the end of 2020, that led to a net gain from impairment adjustments of RON 31.6 million.
Expenses with windfall tax decreased as compared to Q1 2020 by RON 63.9 million.
The Group recorded in Q1 2021 an additional provision for purchase of greenhouse gas emissions certificates of RON 67.3 million, due to the increase of certificate price as compared to the estimation made in December 2020.
Net consolidated profit of RON 463.8 million was lower by 18.91%, namely RON 108.2 million, versus the similar period of the previous year.
Net consolidated earnings per share (EPS) was RON 1.2.
The achieved margins of the consolidated net profit (34.9%), consolidated EBIT (41.3%) and consolidated EBITDA (52.4%) decreased slightly as compared to Q1 2020 (40.0%; 46.8% and 57.0% respectively) but maintains a high rate.
Natural gas consumption estimated2 nationally for Q1 2021 was 49 TWh, approximately by 6% higher than the consumption recorded in Q1 2020.
Natural gas production was RON 1,311.5 million m3, by 3.7%, namely 50.8 million m3 below the production recorded in Q1 2020.
Electricity supplied was of 185.8 GWh, by 22.67% lower than for the similar period of last year (240.3 GWh).
Electricity production reached 202.1 GWh, by 21.96% lower than production in the similar period of last year (258.9 GWh), the difference against the electricity supplied into the National Power Grid represents own consumption of the power plant.
Relevant Consolidated Financial Results
*RON million*
Q1 2020 | Q4 2020 | Q1 2021 | ΔQ1/Q4 (%) | Main indicators | Q1 2020 | Q1 2021 | Δ Q1 (%) |
1,430.3 | 1,156.5 | 1,327.2 | 14.76 | Revenue | 1,430.3 | 1,327.2 | -7.21 |
1,413.6 | 1,129.2 | 1,256.1 | 11.24 | Income | 1,413.6 | 1,256.1 | -11.14 |
733.6 | 810.7 | 693.5 | -14.46 | Expenses | 733.6 | 693.5 | -5.47 |
0.3 | 1.1 | (0.2) | n/a | Share of profit of associates | 0.3 | (0.2) | n/a |
680.3 | 319.7 | 562.4 | 75.91 | Gross Profit | 680.3 | 562.4 | -17.33 |
108.3 | 13.7 | 98.6 | 619.71 | Profit tax | 108.3 | 98.6 | -8.96 |
571.9 | 306.0 | 463.8 | 51.57 | Net profit | 571.9 | 463.8 | -18.90 |
669.3 | 307.4 | 548.6 | 78.46 | EBIT | 669.3 | 548.6 | -18.03 |
815.3 | 511.4 | 695.7 | 36.04 | EBITDA | 815.3 | 695.7 | -14.67 |
1.5 | 0.79 | 1.2 | 51.90 | Earnings per share (EPS) (RON) | 1.5 | 1.2 | -20.00 |
39.98 | 26.46 | 34.94 | 32.05 | Net profit ratio (% from Revenue) | 39.98 | 34.94 | -12.61 |
46.79 | 26.58 | 41.33 | 55.49 | EBIT Ratio (% from Revenue) | 46.79 | 41.33 | -11.67 |
57.00 | 44.22 | 52.42 | 18.54 | EBITDA Ratio (% from Revenue) | 57.00 | 52.42 | -8.04 |
6,240 | 6,188 | 6,126 | -1.00 | Number of employees at the end of the period | 6,240 | 6,126 | -1.83 |
Operational results
Q1 2020 | Q4 2020 | Q1 2021 | ΔQ1/Q4 (%) | Main indicators | Q1 2020 | Q1 2021 | Δ Q1 (%) |
1,362.3 | 1,322 | 1,311.5 | -0.79 | Gross production (million m3) | 1,362.3 | 1,311.5 | -3.73 |
98 | 94 | 93 | -1.1 | Petroleum royalty (million m3) | 98 | 93 | -5.10 |
6,497 | 6,119 | 6,351 | -13.12 | Condensate production (tonnes) | 6,497 | 6,351 | -2.25 |
258.9 | 319.6 | 202.1 | -36.78 | Electricity production (GWh) | 258.9 | 202.1 | -21.96 |
895.4 | 892.5 | 1,289.9 | 44.53 | UGS withdrawal services (million m3) invoiced by Subsidiary | 895.4 | 1,289.9 | 44.06 |
40.7 | 99.6 | 2.4 | -97.59 | UGS injection services (million m3) invoiced by Subsidiary | 40.7 | 2.4 | -94.10 |
Natural gas production recorded in Q1 2021 was 1,311.5 million m3 by 3.7% lower than the production of Q1 2020.
Bearing in mind that every hydrocarbon production company records a production decline, the company recorded in Q1 2021 a relatively high production supported by:
ü Continuous rehabilitation projects for main mature gas fields, mitigating production decline in such fields;
ü Performing recompletion operations in wells that led to reactivation of several wells with important flow rates.
The conditions underlying these results were:
? Gas imports for consumption were approximately 9.66 TWh, 6.7% higher than the quantity of Q1 2020;
? Withdrawals from Romgaz UGS's were by 150% higher than in the similar period of last year.
National gas consumption estimated for Q1 2021 was 49.13 TWh, by approx. 6% higher than the consumption recorded in Q1 2020, out of which 9.66 TWh is covered by import gas and the difference of 39.47 TWh by domestic gas. Romgaz contribution is 18.14 TWh, representing 36.92% from the national consumption, and 45.96% from the consumption supplied from internal gas. Romgaz market share rose by 2.5% as compared to the market share recorded in Q1 2020.
Notes:
1 Romgaz Group consists of S.N.G.N. Romgaz S.A. ("The Company"/"Romgaz") as parent company, Filiala de Inmagazinare Gaze Naturale Depogaz Ploiesti SRL ("Depogaz") the subsidiary 100% owned by Romgaz, and its associates SC Depomures SA (40% of the share capital) and SC Agri LNG Project Company SRL (25% of the share capital).
2 The consumption is estimated as ANRE did not publish, until the date hereof, the reports on the gas market for February and March 2021
The full version of the Quarterly Report on the Economic-Financial Activity of Romgaz Group on March 31, 2021 (January - March 2021) and the Consolidated Condensed Interim Financial Statements (not audited) for the three-month period ended March 31, 2021 are available on company's website www.romgaz.ro - Section Investor Relations - Interim Reports and on RNS website at:
http://www.rns-pdf.londonstockexchange.com/rns/6558Y_1-2021-5-14.pdf