Romgaz Reports Around 50% Higher Profit Amid Lower Sales

05.10.2011 ZF English

Romgaz Mediaş, the only natural gas producer controlled by the Romanian state, posted a net profit of over EUR70 million in the first three months of the year, a significant rise against the similar period of 2010, although the company's production and sales fell.

According to financial data sent by the company management, in the first three months of the year Romgaz's net profit reached 298.7 million lei (EUR70.7 million), up 46.7% against the similar period of last year when the company reported net earnings of RON203.7 million (EUR49.5 million).

"The main factor behind the higher profit was accounted for by the higher gas prices on the internal market," explained Lucian Stancu, deputy general manager of Romgaz.

In the analysed period, the Romgaz turnover reached RON1.18 billion (EUR280.5 million), nearly 4% more than in the first quarter of 2010.

Stancu also specified the company's natural gas production in the first quarter was 1.51 billion cubic meters, lower than the 1.57 cubic meters produced in the similar period of 2010.

"Gas sales fell 9% in the first quarter of 2011 against the similar period of 2010," the Romgaz representative also said.