Romania: Decreased profit at Transgaz in 2020

, SEE Energy News

In 2020, Transgaz transported 145.6 million MWh of natural gas, which is 9 % lower compared to the previous year. Transgaz recorded a net profit in the amount of 46 million euros in 2020, which is by 34 % less compared to the previous year. The company’s operating revenues fell by 15 % to 273.2 million euros in 2020, while operating costs fell by 11 % year-on-year to 225.5 million euros.

The commodity tariffs decreased in 2020 as compared to 2019, mainly due to ANRE’s amendments of the order on the approval of the gas transmission regulated revenues, total revenues and regulated tariffs methodology, which establishes the increasing by 5 % per year of the percentage by which the approved revenue is recovered by the application of the capacity booking tariff, up to 85 %, and the decreasing of the percentage by which the approved revenue is recovered by the application of the commodity tariff. In gas year 2019-2020 the variable component of the total revenues at the basis of the commodity tariffs is 25% of the total revenues and in gas year 2020-2021 to 20 % of the total revenues.

Transgaz recorded a net profit in the amount of 73 million euros in 2019, which is by 29 % lower compared to the previous year, mainly due to lower transmission fees. The company’s operating revenues dropped by 2 % to 327.5 million euros, while operating costs increased by 13 % to 244 million euros in 2019, due to higher gas price for technological consumption, higher staff expenses and higher tax expenses (the introduction of additional 2 % tax for energy-related companies).