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BUCHAREST (Romania), May 15 (SeeNews) - Romanian natural gas producer Romgaz [BSE:SNG] said on Tuesday its net profit fell 10.6% year-on-year to 501.2 million lei ($129 million/108 million euro) in the first quarter of 2018.
The decrease was due to a drop in delivered gas volumes, which was determined by a nationwide reduction of gas consumption, warm winter weather and increased wind power generation, as well as lower gas prices, the company said in an interim financial report submitted to the Bucharest Stock Exchange, BVB.
Total revenues fell 1.02% on the year in the first quarter of 2018, to 1.48 billion lei.
Romgaz produced 1.36 million cubic meters of natural gas in the first quarter of 2018, up 2.3% on the year.
The company's electricity sales were 52.8% lower in the first quarter compared with the similar period of 2017. According to the data provided by the power grid operator Transelectrica, the market share of Romgaz in electricity sales fell to 1.64 % in the first quarter from 3.61% in the first three months of 2017, the report showed.
Total investments of Romgaz exceeded the budgeted amount by 40.9% and reached nearly 419 million lei in the period under review. Most investments were directed towards drilling works, commissioning of new wells, infrastructure, utilities and electricity generation.
Romgaz's net profit surged 82.4% year-on-year to 1.868 billion lei in 2017 on the back of higher gas and electricity sales and lower expenses.
In April, Romgaz said it will seek its shareholders' approval to withdraw from two blocks in Slovakia and to take over an 8.3% stake in Svidnik block after the withdrawal of JKX Oil&Gas. The final decision will be made during an extraordinary shareholders meeting scheduled for May 22.
The company's main shareholder is the Romanian state with a 70% stake, with the balance of 30% in free float on the BVB.
Shares in Romgaz traded 0.41% lower at 36.8 lei by 1341 CET on Tuesday on the BVB.
(1 euro=4.6283 Romanian lei)