Low consumption of chemical plants hurts Transgaz profit
National gas transmission company Transgaz Mediaş (TNG), saw its
net profit decline by 2.4% between July and September of this year,
to 18.8 million RON (4.4 million euros), after it had increased by
56% in the first half of the year.
Transgaz revenues were slightly up in the third quarter, by 2.6%,
to 225.2 million RON (52.9 million euros) amid a rise in tariffs,
which compensated for the around 6% decline in the consumption
transmitted of gas. The decline could deepen in the last quarter,
after the Economy Ministry decided not to extend the incentive
granted to chemical plants to use gas only from domestic
production, which caused these plants to threaten to suspend
production.
"Results were in line with our expectations of a significant
slowdown in the growth rate in the third quarter against the first
six months of the year because of the lower volumes transmitted.
National gas consumption was cut year-on-year, by 11% in July and
by 10% in August. The decline largely came from chemical plants,
which account for around one third of national consumption, and
which consumed 36% and 23% less gas in July and August respectively
than in the corresponding period of last year," says Roxana
Ungureanu, BCR Erste analyst.