SNGN Romgaz (SNG) Q1 2026 earnings summary

Executive summary

• Net consolidated profit for Q1 2026 was RON 973.16 million, up 2.33% year-over-year, with a net profit margin of 45.5% and EBITDA margin up to 56.7%.

• Revenue for Q1 2026 was RON 2,138 million, down 10.2% year-over-year, mainly due to lower gas deliveries and sales.

• Maintained a leading market position, covering 39% of domestic gas consumption and delivering 31% of total gas in Romania in Q1 2026.

• Significant progress on strategic projects, including Neptun Deep offshore development and a new power plant nearing completion.

• 78.78% of gas sales in Q1 2026 were at regulated prices.

Financial highlights

• Total revenues from gas sales reached RON 1.83 billion, down 11.6% year-over-year due to lower volumes extracted and sold from storage.

• EBITDA margin was 56.7%, EBIT margin 50.2%, and net profit rate 45.5%.

• Profit before tax was RON 1.12 billion, down 1.7% year-over-year.

• Windfall profit tax expense decreased 26% to RON 237 million; gas royalties fell 17% to RON 153 million.

• Net cash position at end-March 2026 was RON 944 million, with total cash of RON 6,530 million.

Outlook and guidance

• Neptun Deep project remains on track for first gas in 2027, with plateau output of 8 bcm annually and ongoing infrastructure milestones.

• 2026 gas production is estimated at 4.8 BCM, slightly below target due to maintenance and storage constraints.

• New power plant scheduled for completion by end-2026, expected to enhance operational efficiency and energy security.

• Decarbonization strategy targets net zero by 2050, with investments in renewables, hydrogen, and carbon capture.

• For April 2026–March 2027, 35 TWh of gas will be sold at regulated prices; Q1 2027 volume at regulated prices is estimated at 10.4 TWh.