S.N.T.G.N. Transgaz (TGN) investor relations material

Executive summary

• Q1 2026 profit exceeded budget by 25% but declined 21% year-over-year, with both individual and consolidated results showing lower revenues and higher costs.

• Major investment projects are underway to expand and modernize gas transmission infrastructure, including hydrogen corridors, with a focus on decarbonization and energy security.

• Subsidiaries in Moldova delivered improved results, with operating profit and revenue rising significantly.

Financial highlights

• Booked capacity revenue rose by RON 31 million year-over-year, but overall operating revenue and net profit declined, with Q1 2026 net profit at 311.9 million lei, down 31% from Q1 2025.

• EBITDA margin in total sales rose to 57.15%, while costs increased 6% year-over-year, mainly from higher depreciation and new investments.

• Turnover decreased 16% to 901.4 million lei; consolidated net profit dropped 25% year-over-year to 386.7 million lei.

• Royalty expense fell by RON 20 million; finance expense increased due to lower capitalized interest.

Outlook and guidance

• No expectation of further significant decreases in capacity booking or tariffs in upcoming quarters; regulated revenue is expected to increase, while tariffs will decrease with the commissioning of Mintia and Black Sea projects.

• Strategic objectives for 2025–2029 emphasize sustainable development, energy efficiency, and compliance with EU decarbonization policies, with investments exceeding EUR 9.1 billion planned.

• Budgeted revenue targets are expected to be met, with auction premia and overruns estimated at RON 10–25 million.