Page 9 - EurOil Week 33 2022

EurOil PERFORMANCE EurOil

Romanian energy companies

report hike in profits

ROMANIA TWO major Romania energy companies — period of 2021.
natural gas and electricity producer Romgaz The company’s electricity production
Romanian firms, like and nuclear power company Nuclearelectrica reached 545 GWh, 341.58 GWh higher (+168%)
others, are benefiting — have reported sharp hikes in their profits for compared to the same period of 2021. This gave
greatly from the energy the first half of 2022. Romgaz a market share of 1.95%.
price spike. Romgaz reported a net profit of RON1.7bn Nuclearelectrica, the operator of Romania’s
(€340mn) in the first half of 2022, up 127% com- nuclear plant located in Cernavoda, achieved the
pared to the same period last year. Nuclearelec- hike in profit despite the marginal 2.3% decline
trica, meanwhile, announced its profits rose in the volume of electricity produced and the
more than threefold year on year RON1.22bn RON586mn of “additional income tax expense”
(€244mn). The surges in profitability came — the windfall profit tax. The additional income
against the background of strongly rising energy tax is calculated as 80% of the revenues above
prices, and despite windfall taxes levied by the RON450 per MWh.
Romanian government on energy producers in The average weighted sale price, for the quan-
order to finance the ‘cap and subsidy’ scheme tities of electricity sold (without the bilateral
aimed at protecting households and small firms market), in the first half of 2022, was RON615
from excessive electricity prices. per MWh (including Tg, a fee paid to the power
Both companies are majority owned by the grid operator) — more than double compared
Romanian state, which owns 70% of Romgaz to the RON254 in the same period last year but
and 82% of Nuclearelectrica. lower compared to the average price of RON752
Romgaz attributed the increase in profits to in the first half of this year on the markets where
the evolution of natural gas prices and signifi- Nuclearelectrica is operating.
cantly higher electricity production. The average sale price for Nuclearelectrica’s
Romgaz’s revenues rose three times, to RON- bilateral contracts in H1 was RON534 per MWh
7.5bn and the company’s reported turnover for (Tg included), an increase of 117% compared to
the first half of 2022 was 31% higher than for the the average price recorded in the first half-year
full year of 2021. The company’s natural gas pro- of 2021.
duction for H1 2022, was 2.52bn cubic metres, On the day-ahead market, the average price
marking an insignificant production decline realised by Nuclearelectrica was RON1,030 per
(-0.16%) related to the production recorded in MWh (Tg included), compared to RON290 (Tg
H1 2021. included) recorded in the first half of 2021.
In H1, Romgaz paid a windfall profit tax Nuclearelectrica’s revenues from the sales
and fees of about RON4.6bn, compared to only of electricity thus increased by 130% y/y to
RON399mn in the same period last year. nearly RON3.1bn while the operating expenses,
Romgaz has a 61.4% market share in terms of less depreciation and amortisation and addi-
deliveries from internal natural gas production, tional income tax, increased by only 30% y/y to
10.5pp higher than the share held in the same RON847mn. ™

Week 33 18•August•2022 www. NEWSBASE .com P9