OMV Petrom: 9%Year-on-Year Decrease in Turnover in Q1 2014

In Q1 2014, Romgaz recorded a sales turnover of RON 1.45 bn, up by 25.33% year-on-year, based on high revenues from internal gas sales. Although production only saw a slight growth from last year’s Q1, revenue increase is largely attributable to the liberalization of gas prices. Revenue from domestic gas supply thus increased by 31.94% to RON 1,099,034.

The gas storage activity in Q1 also generated a 55.84% rise in year-on-year revenue due to the 50% increase in gas storage tariffs implemented by Romanian National Energy Regulator (ANRE) at the end of April. Imported gas sales decreased by 56.17% due to both slow demand and the waiver of the obligation to deliver the "import-domestic basket mix” on the regulated gas market. Revenues from electricity production increased almost five-fold following takeover of the Iernut power plant.

The company incurred an extra tax burden of RON 24.5 m from the new tax on special constructions and an extra tax levy of RON 80.5 m for additional revenues from the gas sector liberalization. Net profit in Q1 rose 82.82% year-on-year. Shareholders also approved a distribution of dividends of RON 990.6 m for 2014, from the RON 995.5 m profit recorded in 2013.