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Lower transmission tariffs drag down Romania's Transgaz 2019 profit

Lower transmission tariffs drag down Romania's Transgaz 2019 profit Source:

BUCHAREST (Romania), February 20 (SeeNews) - Romanian gas transmission company Transgaz [BSE:TGN] said on Thursday that its net profit fell by 29% on the year to 349.4 million lei ($79 million/73 million euro) in 2019, due to a drop in transmission tariffs.

Operating revenue before balancing and construction activity edged down by an annual 2% to 1.57 billion lei, mainly influenced by lower commodity transmission tariffs, Transgaz said in its 2019 provisional report filed with the Bucharest Stock Exchange, BVB.

Operating costs before balancing and construction activity increased by 13% on the year to 1.17 billion lei in 2019, as the company registered savings mainly on maintenance and transport costs as well as on the cost of provision for risks and other charges.

In January, Transgaz said that it has signed a memorandum of understanding with peers and organisations from Albania, Bosnia, Croatia, Kosovo, Bulgaria, Montenegro, North Macedonia, Greece and three other countries for the development of natural gas networks in Eastern Europe.

Transgaz also said last month that works are on schedule for the completion of the pipeline that would link Iasi to the capital of neigbouring Moldova - Chisinau, via Ungheni. 

The Ungheni - Chisinau project involves the construction of a gas pipeline 120 kilometres in length, three gas delivery stations as well as the procurement of equipment. The Iasi-Ungheni section of the pipeline, put into operation in 2014, can transport about 1.5 billion cubic meters of natural gas per year.

Transgaz shares traded 2.21% lower at 332.5 lei on the Bucharest Stock Exchange as at 0959 CET on Thursday.

(1 euro=4.7789 lei)