Romgaz Reports 14.1% Decrease in Net Profit in Q3 on Lower Gas Demand

Romania’s Romgaz reported a 14.1% decrease in net profit in the first nine months of the current year in comparison to the same period in 2014. The decrease in profits correspond with an uptick in operating expenses and lower gas demand. 

"Operating expenses are higher as compared to the planned ones due to the allowance for doubtful customers of RON 187.9 million (€42.66 million) and to the partial impairment of non-current assets for exploration works in the Black Sea of RON 133 million (€29.92 million) that led to a net profit of RON 975.3 million (€219.32 million)," reads the Q3 2015 Report published on Friday. 

At the same time, the company’s performances were hit by a 2.66% decrease of natural gas demand on the Romanian market. 

According to the company, lower natural gas sales were due to consumers’ reduced payment capacities and to the "delayed issue of the regulations on the minimum gas stock for the 2015-2016 winter and the lack of will of the main natural gas sector players to comply with regulations due to the uncertainties on carrying out the price liberalization process on the regulated market."

With respect to the same period of the year last year, Romgaz’ revenues decreased by 8.2% and profit tax by 54.6%.