Romgaz S Regulatory News (SNGR)

QUARTERLY REPORT

ON THE ECONOMIC-FINANCIAL ACTIVITY OF ROMGAZ GROUP

ON MARCH 31, 2022 (January 01, 2022 - March 31, 2022)

IDENTIFICATION DETAILS ON REPORT AND ISSUER

ROMGAZ GROUP[1] PERFORMANCES

In the first quarter (Q1) 2022, Romgaz Group recorded a revenue of RON 3,925.8 million, increased by 195.78%, namely RON 2,598.5 million, as compared to the revenue achieved in Q1 2021. Compared to Q4 2021, the revenue increased by 66.6%.

Net consolidated profit of RON 979.6 million was higher by 111.24%, namely by RON 515.9 million, compared to the same period of the previous year. Compared with Q4 2021, net profit increased by 29.13%.

Net consolidated earnings per share (EPS) was RON 2.5.

The achieved margins of the consolidated net profit (24.95%), consolidated EBIT (28.97%) and consolidated EBITDA (31.24%) decreased as compared to Q1 2021 (34.94%; 41.33% and 52.42% respectively) but remain at high levels. Decreases in the percentage rates of these indicators are generated by the windfall tax and petroleum royalty which increased from RON 201.0 million in Q1 2021 to RON 2,303.9 million in Q1 2022 (+1,046.2%). Compared to Q4 2021, these expenses were 14.77% higher.

On March 30, 2022, Romgaz signed a credit facility agreement in amount of EUR 325 million for the acquisition of all shares issued by ExxonMobil Exploration and Production Romania Limited which holds 50% of the rights and obligations under the Concession Agreement for the Exploration, Development and Production of XIX Neptun Deep Block.

Natural gas consumption estimated[2] at national level for Q1 2022 was about 44 TWh, approximately 11% lower than the consumption recorded in Q1 2021.

Natural gas production recorded in Q1 2022 was 1,307.2 million m3, 0.33% lower than in Q1 2021.

The amount of electricity produced was 345.34 GWh in Q1 2022, 70.87% higher than production in the similar period of last year (202.1 GWh).

Relevant Consolidated Financial Results

*RON million*

Operational results

Note: information is not consolidated, it also includes transactions between Romgaz and Depogaz.

Natural gas production recorded in Q1 2022 was influenced by:

ü Implementation of measures to optimize gas field production;

ü Continuation and extension of rehabilitation projects of the main mature gas fields;

ü Performance of well workover and recompletion programs in inactive or low productivity wells;

ü completion of investment works to extend the production infrastructure and connection of new wells to this infrastructure.

The conditions underlying these results were: 

Ø Gas imports for consumption were approximately 9.5 TWh, 7.33% higher than in the same period of the previous year;

Ø Withdrawals from Romgaz UGSs were 2.07 million MWh lower than in the similar period of 2021 (1.96 million MWh compared to 4.03 million MWh).

National gas consumption estimated for Q1 2022 was 44 TWh, approximately 11% lower than the consumption recorded in Q1 2021, out of which approximately 9.5 TWh was covered by import gas and the difference of 34.5 TWh by domestic gas. Romgaz contribution was 15.7 TWh, representing 35.72% from the national consumption and 45.53% from the consumption covered from domestic gas.

The full version of the Quarterly Report on the Economic-Financial Activity of Romgaz Group on March 31, 2022 (January - March 2022) and the Consolidated Condensed Interim Financial Statements for the Three-Month Period Ended March 31, 2022 (Unaudited), Prepared in Accordance with International Accounting Standard 34, are available on company's website www.romgaz.ro - Section Investors - Interim Reports and on RNS website, at: 

http://www.rns-pdf.londonstockexchange.com/rns/4131L_1-2022-5-13.pdf