SNGN Romgaz (SNG) Q2 2025 earnings summary

Executive summary

• Revenue increased 9% year-over-year to RON 4.25 billion in H1 2025, driven by higher gas deliveries and a market share of over 47% of national consumption, despite flat gas production.

• Net profit declined 8.6% to RON 1.68 billion, mainly due to higher taxes, regulated prices, and increased expenses.

• EBITDA margin was robust at 54%, with net profit margin over 39%; strong balance sheet and significant cash reserves maintained.

• Major investments continued in Neptun Deep and Iernut power plant, with Neptun Deep targeting first gas in 2027.

• Strong ESG focus, targeting at least 10% emissions reduction by 2030 and net zero CO₂ by 2050.

Financial highlights

• H1 2025 revenues reached RON 4,248 million (+9% year-over-year); net profit RON 1,679 million (-8.6% year-over-year); EBITDA RON 2,308 million (-2.1% year-over-year); EBIT RON 1,962 million (-5.5% year-over-year).

• Net profit margin: 39.5%; EBITDA margin: 54.3%; ROE: 22% at end-June 2025.

• Dividend payout ratio for 2024: 19.6%–50%; dividend per share RON 0.1568, paid in July 2025.

• Net cash position at end-June 2025: RON 1,056 million; cash and cash equivalents RON 1,442 million.

• Windfall Profit Tax expense increased 24% to RON 475 million; total taxes and duties rose 18% to RON 781 million.

Outlook and guidance

• Neptun Deep project on track for first gas in 2027, expected to produce ~8 bcm annually at plateau.

• 2025 investment program totals RON 5,089 million, with 74% of H1 targets achieved.

• Regulated price sales expected to be 84% of total sales in 2025 and over 87% in Q1 2026.

• First megawatt injection from the new Iernut power plant targeted by year-end 2025, with full commissioning subject to testing and contractor resolution.

• Strategy targets minimum 10% reduction in carbon, methane, and other gas emissions by 2030.