BOARD OF DIRECTORS'
REPORT
1ST HALF YEAR
2024
IDENTIFICATION DETAILS ON REPORT AND ISSUER
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Report based on
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Law No. 24/2017 on issuers of financial instruments and market
operations (Article 67) and
ASF Regulation
(Financial Supervisory Authority) no.5/2018 on issuers of financial
instruments and market operations (Annex No.14) for the six-month period ended on June 30, 2024
(H1 of financial year 2024)
GEO No.109 of November 30, 2011 on corporate governance of
public enterprises, as subsequently
amended and supplemented - art.55 para (1)
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Report Date
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August 14, 2024
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Company Name
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Societatea Naţională de Gaze
Naturale "ROMGAZ" SA
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Headquarters
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Mediaş, Piaţa Constantin I. Motaş,
nr.4, 551130, Sibiu
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Telephone/fax number
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0040 374 401020 / 0040 269
846901
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Web/E-mail
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www.romgaz.ro / secretariat@romgaz.ro
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Registration No. with the Trade
Register Office
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J32/392/2001
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Fiscal Code
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RO14056826
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Legal Entity Identifier
(LEI)
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2549009R7KJ38D9RW354
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Regulated market where the company's
shares are traded
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Bucharest Stock Exchange (shares)
and London Stock Exchange (GDRs)
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Subscribed and paid in share
capital
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RON 3,854,224,000
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Shares main
characteristics
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3,854,224,000 shares, each with a
nominal value of RON 1
nominative, ordinary, indivisible
shares, issued dematerialised and free tradable since November 12,
2013 as SNG - for shares
and SNGR - for
GDRs
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Romgaz[1] Group
Performances
Romgaz Group keeps high operational
and financial performances in the first six months of 2024 (H1
2024).
National gas consumption recorded an
increase of roughly 1% for the first 6 months of 2024 as compared
to the similar period of last year, while Romgaz deliveries
decreased by 4.6%. Therefore, Romgaz market share[2]
is 45.31%, by 2.5% lower than the share held in
the similar period of last year.
Natural gas production for the
first half of 2024, was 2,486.9 million
m3, indicating a 4.34% production increase
related to the production recorded in H1 2023.
Romgaz electricity production reached
450.769
GWh, lower by 46.810 GWh than the
production recorded in the similar period of 2023 (-9.41%). With
this production Romgaz holds a market share of
1.68%[3].
Net consolidated profit recorded by Romgaz Group in H1 2024 was RON 1,837.21 million,
8.99% higher as compared to H1 2023, namely RON 151.57 million.
Compared to Q2 2023, net profit decreased by 17.29% and compared to
Q1 2024 it decreased by 52.47%.
Consolidated net profit per share (EPS)
was RON 0.48.
Margins of the main profitability indicators for H1
2024: net consolidated profit
(47.15%), consolidated EBIT (53.30%) and consolidated EBITDA (60.50%) continue to keep at high levels (H1 2023:
34.42%; 59.19% and 64.79% respectively).
Relevant financial results (consolidated)
*RON million*
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Q2
2023**)
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Q1
2024**)
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Q2 2024
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Δ Q2 (%)
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Main
Indicators
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H1
2023**)
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H1 2024
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Δ H1 (%)
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1,988.3
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2,273.0
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1,623.9
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-18.33
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Revenue
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4,897.3
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3,896.9
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-20.43
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2,198.3
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2,419.3
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1,796.4
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-18.28
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Income
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5,229.1
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4,215.7
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-19.38
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979.1
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934.3
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1,115.7
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13.95
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Expenses
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2,224.9
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2,050.0
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-7.86
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1.1
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2.0
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1.4
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27.27
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Share of associates'
result
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1.6
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3.4
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112.50
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1,220.3
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1,486.9
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682.1
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-44.10
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Gross Profit
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3,005.7
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2,169.0
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-27.84
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504.6
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241.6
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90.2
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-82.12
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Profit Tax
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1,320.1
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331.8
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-74.87
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715.6
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1,245.3
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591.9
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-17.29
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Net Profit
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1,685.6
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1,837.2
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8.99
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1,156.2
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1,444.7
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632.4
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-45.30
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EBIT
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2,898.6
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2,077.1
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-28.34
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1,284.3
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1,587.6
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770.3
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-40.02
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EBITDA
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3,173.2
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2,357.8
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-25.70
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0.19
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0.32
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0.15
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-17.29
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Earnings per share*)
(RON)
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0.44
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0.48
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8.99
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35.99
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54.79
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36.45
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1.26
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Net Profit Rate (% from
Revenue)
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34.42
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47.15
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36.97
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58.15
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63.56
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38.94
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-33.03
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EBIT ratio (% from
Revenue)
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59.19
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53.30
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-9.94
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64.59
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69.84
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47.43
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-26.57
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EBITDA ratio (% from
Revenue)
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64.79
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60.50
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-6.62
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5,944
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5,973
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5,948
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1.00
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Number of employees at the end of
the period
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5,944
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5,948
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1.00
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The figures above are rounded. Therefore, small differences
may result upon reconciliation.
*)
Earnings per share (EPS) was calculated to the current number of
3,854,224,000 shares for all periods presented
**) Information related to previous periods were changed
following a revised presentation of financial statements. Income
from works performed by the Group and capitalized as non-current
assets were offset by costs incurred for carrying out such
investments. Currently, income from works performed by the Group
and capitalized as non-current assets are shown in a separate row
in the statement of comprehensive income and expenses include such
costs. The result of previous periods is not affected by this
change in presentation (see Note 2 from the Condensed consolidated
interim statement of comprehensive income on June 30,
2024).
Summary of the Group's main
indicators for H1 2024:
- Natural gas
production for H1 2024 increased by
4.3% as compared to the similar period of 2023;
- Total income
decreased by RON 1,013.4 million in H1 2024,
recording a drop of 19.38% due to the following
factors:
· Decrease of revenue from natural gas sales (RON 3,250.23 million in H1 2024 as compared to RON 4,283.68
million in H1 2023), mainly due to a drop in prices. Gas quantities
delivered in H1 2024 were by 4.2% lower than in H1 2023. Compared
to Q1 2024, Q2 recorded lower gas deliveries by 14.29% while
revenue from gas sales were lower by 31.11%. As of April 1, 2024
gas prices sold under Government Emergency Ordinance No.27/2022
dropped by 20%, from 150 RON/MWh to 120 RON/MWh. Of the total
delivered quantity, deliveries made under GEO No. 27/2022 represent
65.11%;
· Revenue from electricity sales also recorded a decrease (RON
180.27 million in H1 2024 as compared to RON 200.40 million in H1
2023) caused by low sale prices. According to GEO No. 27/2022 sale
prices decreased by 11.1%, from 450 RON/MWh to 400
RON/MWh;
· Revenue from storage services decreased by 3.7% (RON 276.65
million in H1 2024 as compared to RON 287.29 million in H1 2023),
mainly following a decrease of income from capacity booking and of
income from injection services. In 2024-2025 storage cycle (started
on April 1, 2024) the storage tariff decreased by 1.74%.
- Total expenses
decreased in H1 2024 by 7.86% (RON -174.9
million), mainly due to the reduced windfall tax for natural gas
(RON - 256.86 million);
- Net consolidated
profit of RON 1,837.21 million, by
8.99% higher, namely by RON 151.57 million, as compared to the
similar period of last year, a significant
positive influence was the elimination of the solidarity
contribution (RON 970.92 million for the first half of 2023)
starting with 2024.
Operational results
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Q2 2023
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Q1 2024
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Q2 2024
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Δ Q2 (%)
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Main
Indicators
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H1
2023
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H1 2024
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Δ H1 (%)
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1,146.6
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1,291.0
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1,195.9
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4.3
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Gas production (million
m3)
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2,383.3
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2,486.9
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4.3
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5,322
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7,440.0
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9,028.0
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69.6
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Condensate production
(tons)
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10,939.0
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16,468.4
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50.5
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174.5
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263.8
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186.9
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7.1
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Electricity production
(GWh)
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497.6
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450.7
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-9.4
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42.4
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947.7
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35.9
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-15.3
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Invoiced UGS withdrawal services
(million m3)
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1,157.3
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983.6
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-15.0
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814.3
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41.1
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779.6
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-4.3
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Invoiced UGS injection services
(million m3)
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859.7
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820.7
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-4.5
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Note: the information is not consolidated, namely it contains
transactions between Romgaz and Depogaz.
H1 2024 gas production was
influenced by:
-
well workover operations at wells with low
productivity or inactive wells;
-
ongoing rehabilitation projects of main mature gas
fields;
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optimisation of gas field exploitation;
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investments to expand production infrastructure
and to connect new wells to it;
-
production decline specific for production of
hydrocarbon reservoirs.
National gas consumption estimated
for H1 2024 was 56 TWh, approximately 1% higher than the
consumption recorded in H1 2023, out of which about 9.3 TWh was
import gas and the difference of 46.7 TWh is gas from domestic
production, Romgaz deliveries being 25.4 TWh, representing 45.3% of
the national consumption and 54.3% of the consumption covered with
gas from domestic production.
Electricity production is shown
in the table below and its trend was closely related to the energy
demand, price trends on competitive markets and equipment
maintenance and repair activities.
*MWh*
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2023
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2024
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Variation
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1
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2
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3
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4=(3-2)/2x100
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Q1
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323,037
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263,832
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-18.33
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Q2
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174,542
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186,937
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7.1
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H1
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497,579
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450,769
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-9.41
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The full version of the Board
of Directors' Report for 1st Half Year 2024,
the Condensed Consolidated Interim
Financial Statements for the six-month and three-month periods
ended June 30, 2024 (unaudited) and the Condensed Separate Interim Financial
Statements for the six-month period ended June 30, 2024
(unaudited), prepared in accordance with International Accounting
Standard 34 as adopted by the European Union, are available
on company's website www.romgaz.ro - Section Investors - Interim Reports and
on London Stock Exchange website, at the link
bellow.
http://www.rns-pdf.londonstockexchange.com/rns/4037A_1-2024-8-14.pdf