2018 Half-year financial results

TGN S.N.T.G.N. TRANSGAZ S.A.

CURRENT REPORT

according to the provisions of Art. 61 of Law 24/2017

 

Date of report: 14 August 2018

Name of issuing entity: SNTGN TRANSGAZ SA MEDIAS

Headquarters: Medias, 1 Constantin I. Motas Square, Sibiu County

Telephone/fax number: 0269803333/0269839029

Tax number: RO 13068733

Trade Register number: J32/301/2000

Subscribed and paid-up capital: RON 117.738.440

Regulated market on which issued securities are traded: Bucharest Stock Exchange

 

Reported events: Interim Financial Statements for semester I 2018, unaudited

According to the provisions of capital market law, SNTGN Transgaz SA Medias informs those concerned of the following:

 

By Resolution no 36 taken in the meeting held on 9 August 2018 the Board of Administration approved the Financial Statements of SNTGN Transgaz SA for semester I 2018, prepared in accordance with the International Financial Reporting Standards adopted by the European Union.

In the same meeting the Board of Administration endorsed the Report issued by the Board of Administration of SNTGN Transgaz SA for the activity performed in semester I 2018 for its submission to the Ordinary General Meeting of the Shareholders.

According to the capital market law, the unaudited Interim Financial Statements of SNTGN Transgaz SA for semester I 2018 contain:

§  The Declaration of the responsible persons within SNTGN Transgaz SA;

§  The Interim Statement of Financial Position;

§  The Interim Statement of Comprehensive Income;

§  The Interim Statement of Changes in Equity;

§  The Interim Cash Flow Statement;

§  Notes to the Interim Financial Statements;

The Interim Financial Statements for semester I 2018 are not audited.

The economic and financial activity of SNTGN Transgaz SA during the period January-June 2018 was performed based on the indicators in the revenue and expense budget approved by OGMS Resolution 2/06.03.2018.

The situation of the financial results achieved as at 30 June 2018 as compared to the similar period of 2017 is presented in the table below:

No.

Indicator

MU

Sem I 2018

Sem. I 2017

1.

Turnover

thousand lei

883,524

1,027,603

2.

Operating revenue before the balancing and the construction activity acc. to IFRIC12

thousand lei

823,907

980,477

3.

Operating expense before the balancing and the construction activity acc. to IFRIC12

thousand lei

506,146

519,977

4.

Operating profit before the balancing and the construction activity acc. to IFRIC12

thousand lei

317,761

460,501

5.

Revenue from balancing

thousand lei

90,483

76,692

6.

Cost of balancing gas

thousand lei

90,483

71,913

7.

Revenue from the construction activity acc. to IFRIC12

thousand lei

34,919

17,532

8.

Cost of assets built acc. to IFRIC12

thousand lei

34,919

17,532

9.

Operating profit

thousand lei

317,761

465,280

10.

Financial revenue

thousand lei

21,978

21,767

11.

Financial cost

thousand lei

8,878

8,672

12.

Gross profit

thousand lei

330,860

478,375

13.

Tax on profit

thousand lei

51,254

77,885

14.

Net profit

thousand lei

279,606

400,491

15.

Total comprehensive result for the period

thousand lei

279,606

400,491

16.

Transmitted gas*)

thousand lei

6,658,467

6,857,186

17.

Technological consumption

thousand lei

39,745

36,022

18.

Technological consumption

thousand lei

48,310

50,281

  *) transmitted quantity for which transmission services are invoiced

Operating revenue before the balancing and the construction activity according to IFRIC12 are 16% lower as compared to the achievements related to semester I 2017, mainly because of the lower revenues from: the commodity charge, capacity booking and international gas transmission.

Operating costs before the balancing and the construction activity according to IFRIC12 are 3% lower as compared to semester I 2017, the company registered savings mainly on account of royalty expenses, other material costs and other operating expenses. Expense overruns were also registered in the following categories of costs: consumption and technological gas loss, maintenance and transmission, personnel, taxes and other amounts due to the state and depreciation.

As compared to the achievements related to semester I 2017 the gross profit achieved in semester I 2018 is 31% lower, namely by lei 147,515 thousand.

By reference to the Revenue and Expense Budget related to semester I 2018 the operating revenues are 10% over the budgeted amount and the operating expenses are 16% under their budgeted level.

The gross profit achieved in semester I 2018 is 114% higher than the budget, namely by lei 176,278 thousand.

The net profit of semester I 2018 is 105% higher than the planned one, namely by lei 142,989 thousand.

The detailed description of the indicators is available in the Report issued by the Board of Administration related to Semester I 2018.

Director General

Ion Sterian