Transgaz unpleasantly surprises investors with 60% lower profit budgeted for 2011

Transgaz Media[ (TGN), the natural gas transmission monopoly in Romania, has budgeted net income worth 113.9m RON (around 26.7m euros) for this year, down 62% from the net income estimated for last year, of 306.6m RON (71.9m euros), according to the budget draft due to be submitted to shareholders' approval in March.
There was a prompt reaction on the Bourse: Transgaz shares yesterday lost 2.1%, and the analysts of major brokerages started reviewing their projections on the shares, which until last year were a top favourite.
"The company has proven conservative in its estimates so far, but we see this budget as a strong negative signal regarding expectations for 2011, particularly on amounts transmitted and charges. We will revise our estimates and the hold recommendation," announced Raiffeisen Capital&Investment analysts in a report.
They also say that though the company has not provided details on what the budget is based on, Transgaz is likely to expect falling quantities of transmitted natural gas, after the state in November 2010 suspended the incentive of allowing chemical industry producers to use only domestic production gas, which is cheaper.