Romgaz Medias gas producer, one of the most valuable companies still held by the state, in the first half of this year generated net income worth 61m euros (202m RON), down 8%.
The main factor that drove the company's income down was the rising quantity of gas contracted from abroad, as gas import prices in H1 did not see any significant changes from the similar period of last year.
Thus, the average price per 1,000 cubic metres of gas stood at 288 dollars (216 euros).
According to the data released by the National Natural Gas Ruling Authority (ANRGN), the average quantities Romgaz imported in H1 accounted for around 20% of the overall imports operated nationwide, while the share of Romgaz imports in the total stood at 13% last year.
Turnover derived by the gas producer reached 491m euros, up 15% from the corresponding period of last year.
"Turnover was higher than last year's level as delivery prices were brought into line with foreign ones, while income was lower because the quantity of gas acquired from abroad was higher than in the same period of 2006," stated Romgaz representatives.
Romgaz and Petrom are the biggest domestic gas producers and their production covers around 60% of domestic demand.
Last week, Petrom announced it raised the price of domestically produced gas by 3.2% in July, to 470 RON (145 euros) per 1,000 cubic metres, a move meant to take the price of domestic production closer to the level of imports.
Romgaz is also expected to embrace a similar strategy. Thus, the price for end users could go up by yearend despite what economy and finance minister Varujan Vosganian said, that the population would not witness any price hikes for natural gas or electricity by yearend.
"The increase was agreed upon after a series of consultations with us (ANRGN) and will have no impact over the price for end users. The production price raise was allowed as import gas prices registered a slight decline and amid RON growth," explained ANRGN representatives.
The price end users pay was set at 881.75 RON per 1,000 cubic metres for the customers of Distrigas Sud and stands at 874.54 RON for those of E.ON Gaz Romania.
As regards the intention of Romgaz to enter the energy market, the company's representatives stated they had not decided on a budget that would be invested in power generation, yet, with the respective budget to be set depending on the company's possibilities and on identified opportunities.
Romgaz is one of the most valuable Romanian companies, with a market value put at more than 2bn euros according to the "Most valuable 100 companies of Romania" ranking put together by ZF. Romgaz, Nuclearelectrica, Hidroelectrica and Transgaz could be floated on the BSE to raise money for investments.
Romgaz
In the first half of this year generated net income worth 61m euros (202m RON), down 8%
The income drop was registered amid the rising quantity of gas contracted from abroad, as gas import prices in H1 did not see any significant changes from the similar period of last year
Turnover derived by the gas producer reached 491m euros, up 15% from the corresponding period of last year
Romgaz is one of the most valuable Romanian companies, with a market value put a more than 2bn euros
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