Romgaz - Lower Tax Payments And Impairment Losses Backed Q1 Results
 Romgaz’s Q1/20 net income came to RON 572mn (+5.5% YoY) on sales revenue of RON 1.43bn (-17% YoY).
 Revenue plunged due to lower gas deliveries against the backdrop of a warm winter but also to a lower gas price. We note that gas prices were not regulated in the corresponding period of 2019, whereas the price of gas sold for households was set at RON 68/MWh (as of 1 May 2019 only for new contracts) and will be kept at that level until 30 June, 2020. Lower gas prices having been witnessed across Europe since the last quarter of 2019 have also been seen on the Romanian gas market (-30-40% YoY), but it is worth noting that Romgaz has already sold a greater part of its production for 2020 in 2019 on gas-year bases, at significantly better prices than the current ones. Given the current glut in the domestic gas market we do not expect an imminent increase in prices after the market liberalization.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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