Transgaz 4Q 20 - Declining profitability, but no real surprises
Transgaz saw its net profit come down 37% yoy, but 4Q 18 results were also boosted by one-off revenues of ca. RON 50 mn. On an adjusted basis, Transgazs profitability contracted by 19% yoy, which we believe should not be a surprise, since the regulated return approved for the current gas year (October 2019-September 2020) is 24% lower vs. the previous gas year, after the cut in regulated rate of return (RRR) from 7.72% to 6.9%. Nonetheless, the market had a negative reaction, and we see low chances for a rebound in profitability until BRUA phase I is included in RAB, probably in October 2020.
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