ROMGAZ - Q3/22 Results Were Lower Than Expected

Q3/22 results were lower than expected

• Romgaz reported net income for Q3/22 of RON 512m and EBITDA of RON 712m compared to RON 395m and RON 622m, respectively. Revenue grew to RON 3.32bn from RON 1.25bn YoY mainly as a result of increased electricity and gas prices.
• In the first nine months of 2022, EBITDA and net profit came in at RON 2.9bn and RON 2.22bn, up by 60% and 94%YoY, respectively. EPS was RON 5.81, by 94% higher than the one recorded in the first nine months of 2021. Upstream once again represented the vast majority of total revenue (ca. 88%) and over 100% of EBITDA, while storage business represented 3% of total revenue and EBITDA, respectively.
• During the first nine months of 22, Romgaz invested RON 5.46bn compared to RON 324mn in the same period a year earlier, representing approx. 100% of the scheduled investments for 2022, including the purchase of a 50% stake in the Neptun Deep project (the agreed transaction price for 50% of the acquired rights and obligations under the Petroleum Agreement for the eastern area, deep water zone of Neptun XIX offshore Block in the Black Sea was USD 1.06bn). The new audit concluded on 3 August, 2022 shows Romgaz’s total gas reserves of 65.9 bcm (proved, probable, possible) and total gas resources of 55.9 bcm (1C, 2C, 3C).
• Net cash and other liquid financial assets (bank deposits and state bonds purchased) amounted to RON 229mn on September 30, 2022 (or RON 0.6 a share) as compared to around RON 4bn at the end of 2021.