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Romania's Transgaz 9-mo profit drops on lower transmission tariffs, volumes

Romania's Transgaz 9-mo profit drops on lower transmission tariffs, volumes Transgaz. Author ( License: all rights reserved.

BUCHAREST (Romania), November 14 (SeeNews) - Romanian gas transmission company Transgaz [BSE:TGN] said on Wednesday its January-September net profit fell by 31% on the year to 299 million lei ($72 million/64 million euro), due to a fall in transmission tariffs and gas volumes.

Operating revenues fell 14% on the year to 1.11 billion lei in the first nine months of 2018, mainly because of the lower revenues from the commodity charge, capacity booking and international gas transmission, Transgaz said in an unaudited third-quarter report.

Operating costs were 4% lower at 777.7 million lei in the first nine months of 2018, as the company registered savings mainly on lower consumption and technological gas loss and lower prices for auxiliary materials as well as lower expenses for personnel, maintenance and transmission.

Expense overruns were  registered in the following categories of costs: NTS concession royalty and costs of provision for risks and charges, Transgaz said.

Investments this year totalled 168.6 million lei by September, the company said.

Also, since the beginning of the year, Transgaz paid 388.8 million lei idebt to the Romanian state for VAT, oil royalty, income tax, natural monopoly as well as salary, dividend tax and excises.

Transgaz's net profit rose 1.0% year-on-year in 2017, reaching 602.2 million lei.

In September, the European Commission said it was analysing Transgaz' commitments to increase exports in order to address concerns in an EU antitrust case. Following a formal investigation opened in June 2017, the Commission expressed concerns that Transgaz may have breached EU competition rules by restricting exports of natural gas from Romania.

In order to address the concerns of the Commission, Transgaz has proposed several commitments that would make it possible for the first time to reach commercially significant export capacities in Romania.

Also in September, Transgaz finalised the takeover of Moldovan gas transmission company Vestmoldtransgaz for 8.8 million euro ($10.3 million).

Transgaz shares traded 2.86% lower at 357 lei on the Bucharest Stock Exchange as at 1104 CET on Wednesday.

(1 euro=4.6599 lei)