S.N.T.G.N. Transgaz (TGN) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached 391.4 million lei, up from 198.5 million lei year-over-year, with EBITDA up 142% and gross profit up 217%.

• Gross profit increased by 200%, doubling compared to the previous year, with all main financial indicators showing significant improvement year-over-year.

• Revenue from domestic transmission activity increased to 2.15 billion lei from 1.52 billion lei year-over-year.

• Major cost increases were offset by savings in gas consumption and lower financial expenses.

• Strategic focus on infrastructure modernization, hydrogen integration, and regional interconnectivity.

Financial highlights

• Operating revenue before balancing and construction activity rose 123% year-over-year to 2,105,214 thousand lei.

• Net profit reached 372,260 thousand lei, up from 182,645 thousand lei in 2023.

• EBITDA increased to 792,438 thousand lei, a 142% rise year-over-year.

• Other operating expenses dropped by RON 54 million, primarily from lower impairment provisions.

• Cash and cash equivalents at year-end were 1.07 billion lei, up from 713 million lei.

Outlook and guidance

• Major investment program for 2024-2033, with over EUR 4.1 billion allocated to new pipelines, interconnections, and hydrogen-ready infrastructure.

• Gas quantities transmitted are expected to double as new plants (Mintia, Ișalnița, Turceni, Iernut) come online and Black Sea gas is exploited.

• CapEx for the next year is projected at around RON 2 billion, with major investments in projects like Tuzla-Podișor and Mintia.

• The budget for 2025 will be published imminently, providing further clarity on investment and RAB projections.

• Focus on integrating hydrogen and green gases into the transmission system, with pilot projects underway.