SNGN Romgaz (SNG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 4.72% year-over-year to RON 2.38 billion, driven by a 14.7% increase in gas deliveries and higher electricity sales prices despite lower production.

• Net profit was RON 951 million, down 24% year-over-year, but 44% above the three-year quarterly average.

• Romgaz maintained its leading market position, supplying 36% of total gas deliveries and covering 45% of domestic gas consumption.

• Operational focus included reactivating 38 inactive wells, increasing condensate production by 64% to over 12,000 tons, and advancing key projects like Neptune Deep and the Iernut power plant.

• Natural gas consumption in Romania rose by 2% to 41 TWh in Q1 2025, with imported gas volumes up nearly 70%, now representing 21% of total consumption.

Financial highlights

• Total revenues reached RON 2.38 billion, up 4.7% year-over-year, driven by a 15% increase in gas volumes sold.

• Net profit margin was 40%, EBITDA margin 55%, and EBIT margin 47%.

• Windfall profit tax rose over fourfold to RON 322 million, while total taxes and duties increased 86% to nearly RON 500 million, negatively impacting profitability.

• CapEx totaled RON 854 million, with RON 627 million invested in Neptune Deep and RON 86 million in the Iernut power plant.

• Cash and cash equivalents at period end: RON 1,442.4 million; total assets: RON 20,883.9 million; equity: RON 15,137.1 million.

Outlook and guidance

• For 2025, about 83% of gas volumes are expected to be sold at regulated prices, with a full-year estimate of 41.1 TWh.

• Gas production is guided to remain flat or decline by up to 2.5% year-over-year, with a budgeted sales volume of 4.45 BCM.

• The Neptune Deep project is on track for first gas in 2027, within the EUR 4 billion investment guidance.

• The Iernut power plant is 98% complete, but further delays are expected due to contractor financial issues; full commissioning is targeted by year-end.

• Expected profit contribution from the new Iernut plant is EUR 10-15 million in 2026.