Romgaz, one of the two largest gas producers in Romania, concluded a 32,33 million Lei agreement, including VAT (about 7 million euros) for gas supply to CET Govora, Râmnicu-Vâlcea, according to an announcement issued on Wednesday by the state-owned company to the Bucharest Stock Exchange (BVB). CET Govora buys natural gas for the period July 1st, 2017 to September 30th, 2018.

The payment will be made in advance, with the “settlement invoice due within 30 days of the date of issue”, shows the ad.

CET Govora is a producer and distributor of thermal energy – hot water for consumption and centralized heating – in the cities of Râmnicu Vâlcea, Baile Olăneşti and Călimăneşti-Căciulata. The company is owned by the Vâlcea County Council, according to News.ro.

On May 9th, 2016, the Vâlcea Court opened the insolvency procedure for CET Govora as a result of the depreciation of the financial-accounting indicators: losses of 335 million lei, debts of 438 million lei, own negative capital of 96 million lei and available banking of only 170.000 lei, while the monthly salary fund exceeded 10 million lei. The judicial administrator is Euro Insol.

Romgaz achieved a net profit of 565,8 million lei (125,7 million euros) in the first quarter of this year, 16% higher than in the same period last year.

The company shares are traded on the Bucharest Stock Exchange (BVB) and the London Stock Exchange (LSE). The main shareholder is the Romanian State, through the Ministry of Energy, with a 70% stake.