Romania, Romgaz expects its gross profit in 2023 to decrease by 14 % compared to 2022

, SEE Energy News

Romanian state-owned natural gas producer Romgaz said that it expects its gross profit in 2023 to decrease by 14 % compared to 2022 and reach some 530 million euros.

According to the budget draft, the profit distribution rate for dividends will be 50 % this year, while the undistributed balance will be allocated to own development sources. The draft will be put to the vote at the next shareholders’ meeting scheduled for 23 February.

The company also estimates that it will record 2.13 billion euros in revenues in 2023, down 25 % on the year. Romgaz expects to pay 183 million euros solidarity tax on its 2022 windfall profits. Total operating expenses are expected to reach 2.19 billion euros in 2023, of which some 1.65 billion will be taxes and duties.

The company plans to invest almost 470 million euros this year in projects that aim to increase its reserves and resources portfolio and to offset the natural decline of gas production and electricity generation assets.

In December, the Romanian Government approved an Emergency Ordinance introducing a solidarity tax on the profits of oil and natural gas producers and oil refining companies, aiming to raise almost 800 million euros to the state budget in 2023. The Government said that introducing a solidarity contribution of 60 % of taxable profits that exceed by more than 20 % the average profits recorded in the 2018-2021 period aligns with EU legislation adopted in October.

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