Romania’s Transgaz net profit drops 56% in 2023

Operating profit was 41% lower year-on-year at 94.7 million lei, while operating revenue before balancing and construction activity rose 9% to 1.71 billion lei in 2023, Transgaz said in an unaudited annual financial report filed with the Bucharest Stock Exchange.

Transgaz's declines in net profit and revenues were due to a significant drop in balancing activity revenue, lower construction activity revenue, and increased operating costs driven by rising employee costs, royalty changes, and depreciation expenses.

Operating costs before balancing and construction activity rose 14% on the year to 1.61 billion lei in 2023.

During 2023, Transgaz transported 141.5 million MWh of natural gas, almost 450,000 MWh less than in 2022.

At a group level, Transgaz booked a net profit of 172.4 million lei in 2023, down 50% on the year. The Transgaz Group includes parent company Transgaz, as well as Moldovan gas transmission companies Eurotransgaz and Vestmoldtransgaz. Eurotransgaz is fully owned by the Romanian parent and has a 75% stake in Vestmoldtransgaz.

The Romanian state owns 58.5% of Transgaz, with the remainder in free float on the Bucharest Stock Exchange.

Transgaz shares traded 1.56% lower at 18.9 lei as at 1404 CET on Thursday on the Bucharest bourse.

(1 euro=4.97103 lei)