Romgaz anticipates for this year a net income of 1.32 billion RON, almost 12% higher than that achieved last year. National gas producer expects revenues of 4.52 billion RON (-0.23%) and expenditures of 2.87 billion RON (-6.3%). Operating expenses will decrease to 2.84 billion RON (-6.5%), those for goods and services will grow to 484.7 million RON (+28%), and the staff will represent expenses of over 620 million RON, the company claims.

“Following the recommendations of the Board meeting of 28 January 2016 for this year, the percentage of net profit to be distributed to shareholders, as provided in the draft budget, is 70%. During 2016, the Board of Directors will create the dividend policy. For regulatory reasons, it was proposed to realize the budget for 2017-2018 with the statutory minimum percentage of 50%”, says Romgaz.

In 2015, the company’s net profit reached 1.18 billion RON, 16% less than a year earlier, shows the financial report for last year. Romgaz expected to achieve a gross profit of 1.643 billion RON in 2016, up from 1.459 billion RON in 2015. The company forecasts that the gross result will increase to 1.647 billion RON (2017) and 1.649 billion RON (2018).

This year, Romgaz will pay taxes of 745.5 million RON. Of this amount, almost 327 million RON will be paid for the tax imposed on additional revenues obtained from gas prices liberalization. Moreover, Romgaz will pay royalties of about 286 million RON.

Investments increase by 21%

In parallel, Romgaz plans this year investments of 1.12 billion RON (+21% compared to 2015). Monies will be allocated, inter alia, for prospecting and exploration works, increase production capacity and increasing efficiency of existing installations. These works will cost over 480 million RON. An accumulation of over 380 million RON will be used for works at online fields, restarting wells and modernization of gas lines.