Romania: Romgaz financial stabilization and business development expected in 2015

, SEE Energy News

This year, Romgaz, a gas-producing company with majority state-ownership, is planning to increase its net profit by 7 percent, to 340 million euros, in accordance with the budget recently approved by the Government.

This could list Romgaz as the most profitable company in Romania, considering that the oil and gas producer, OMV Petrom, which has maintained this position for the last several years, envisages a decline in the net profit by 40 percent, to 247 million euros.

In 2014, Romgaz achieved a net profit of 317 million euros, which is by 41 percent more than in 2013. The reason for this is the increase in the gas price in Romania as well as a sales increase by 15 percent, by which revenue of over one billion euros was achieved.

The Romanian Government possesses 70 percent of ownership in Romogaz, and it owns a minority share of 20.6 percent in OMV Petrom (OMV group is the majority owner).

OMV Petrom could also be exceeded by the state company Hidroelectrica, the gross profit of which is estimated at 300 million euros, and the profit at more than 250 million euros.

Romgaz and OMV Petrom are listed companies, the shares of which are traded on the exchanges in Bucharest and London. The Government is also planning the emergence of Hidroelectrice on the exchange, as soon as it gets out from bankruptcy.

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