RAPORT ANALIST February 17, 2017
Data primei distribuții către public: Feb 17, 2017

Romgaz: 4Q16 results – 3-2-1, we have lift off

Romgaz announced its 4Q16 results yesterday, beating both our and the consensus expectations dramatically. Sales revenues came in 5% above both our and the consensus expectations, whilst net profit was 62% above our forecast and 23% above the consensus estimates. We believe this increases the chances of a dividend. However, the net profit was boosted by the reversal of a previous write-off, while the
EBITDA was 14% above the consensus, but 16% below our expectations.
We believe the underlying improvement in the Romanian gas market and the promise of a good dividend, as well as the potential development of the company's newest discovery, mean that this is a good time to take another look at Romgaz. It has left its annus horribilis behind, in our view, and we expect 2017E to be much better than 2016 on the back of higher natural gas prices and new developments bringing new sources of natural gas onstream. We also expect the return of one of the best dividend yields in the sector this year.