SNGN Romgaz (SNG) Q4 2024 earnings summary

Executive summary

• 2024 revenue declined 12% to RON 7.93 billion, mainly due to lower gas and electricity prices, despite a 3.6% rise in gas production to 4.96 BCM and a 1% increase in gas deliveries.

• Net profit reached a record RON 3.22 billion, up 14.5% year-over-year, supported by the cancellation of the solidarity contribution and lower profit tax.

• ROMGAZ maintained its leading market position, supplying 58% of total gas deliveries and covering 48% of domestic consumption.

• Regulatory changes reduced the regulated gas price from RON 150 to RON 120 per MWh from April 2024, impacting revenues and tax obligations.

• Major investments included RON 2.18 billion in Neptun Deep and the inaugural EUR 500 million bond issue under the EMTN program.

Financial highlights

• Gas sales revenues fell 15.2% to RON 6.54 billion, despite a 1% increase in volumes to 4.6 BCM.

• Storage services revenues grew 3.3% to RON 570 million, with withdrawal revenues up 59%.

• Electricity revenues dropped 7.7% to RON 376 million, as production decreased 8.6% to 880 GWh.

• Q4 2024 revenues rose 4.9% year-over-year to RON 2.3 billion; Q4 net profit surged 47% to RON 946 million.

• Net profit margin improved to 40.6%, with EBITDA and EBIT margins at 51.6% and 43.9%, respectively.

Outlook and guidance

• Production strategy targets a maximum annual decline of 2.5%; 2025 guidance to be published with the budget.

• CapEx for 2025 projected at around EUR 1 billion, with EUR 700–800 million allocated to Neptun Deep.

• Dividend payout to be balanced with high CapEx needs; proposal expected after the audited annual report in May.

• Gas price regulation extended to March 2026; electricity price regulation extended by three months.

• Neptun Deep project on track: first well drilling in 2025, first gas in 2027; 90% of execution budget committed.