SNGN Romgaz SA posted a preliminary net profit of 1.90 billion lei for 2021, up 52% compared to the previous year, and a turnover of 5.85 billion lei, up 43.63% , according to the Preliminary Consolidated Annual Report sent on Friday to the Bucharest Stock Exchange.

“The increase in turnover comes from the 52.41% increase in revenues from the sale of natural gas, both from Romgaz production and those purchased for resale, and from the increase in revenues from the sale of electricity by 69.9%. On the other hand, the consolidated revenues from storage services decreased by 30.64%,” says the company release.

The estimated natural gas production for 2021 was of about 5.029 billion cubic meters, 508.8 million cubic meters higher than the production achieved in the previous year (+11.3%).

Expenditures on oil royalties (including royalties for storage activity) increased by RON 552.54 million in 2021 and by 280.65%, respectively, mainly due to the increase in the reference price taken into account in calculating this tax.

Exploration expenses amounting to 1.2 million lei are decreasing by 95.48% compared to 2020, the prospecting activities being significantly lower than in the previous period (-24.5 million lei). By Government Decision no. 1011 of September 22, 2021 was approved the additional act no. 6 to the concession agreement concluded between ANRM and Romgaz by which the period of exploration of eight oil perimeters was extended until October 2027. By this additional act, Romgaz undertook to fulfill a certain minimum 3D seismic program, which will lead to a increase exploration costs.

The tax on additional income increased last year by 843.1 million lei (203.17%) compared to 2020.