Romania: Romgaz blames Government for its decreased net profit, SEE Energy News
Romgaz forecasts that it will record a net profit of some 200 million euros this year, 26 % lower than the initial estimate.
The profit, income, and investments of Romanian natural gas producer Romgaz will be revised downwards by about a quarter, under a proposal made by the management to the shareholders.
Accorind to Romgaz management, the revision is mainly due to weaker demand, production, and prices, amid the coronavirus pandemic, and the new legal obligations to offer gas on stock exchanges through auctions under the so-called gas release program. Thus, Romgaz estimates a decrease of 25.3 % or over 250 million euros in its operating income compared to the initial budget for 2020, from 1.1 billion euros to below 850 million euros, despite the liberalization of the household market segment from 1 July.
As a result, the company’s management has postponed the commissioning of new gas-fired power plant at Iernut for June 2021. The plant was initially supposed to open at the end of this year.
The Romanian state controls Romgaz through the Ministry of Economy and Energy, which holds 70 % stake.