Romania’s state-owned gas transmission operator Societatea Națională de Transport Gaze Naturale Transgaz reported a 246 million Romanian leu (RON) net profit decline in the first half of 2026, driven by higher depreciation and reduced booking tariffs, even as revenue exceeded internal targets.
Operating revenue fell 4% year-over-year to approximately RON 2.8 billion, though it exceeded the company’s budget by 16%. Net profit dropped to RON 773 million from RON 1.02 billion in H1 2025, while earnings per share came in at $0.89. Profit before operations decreased by 235 million RON, and EBITDA declined due to increased depreciation expenses linked to two Black Sea shore projects commissioned in early 2026.
Operating costs rose 13% year-over-year, primarily from higher depreciation and finance expenses, which increased by 149 million RON and 57 million RON, respectively. The company achieved RON 23 million in cost savings, mainly from reduced technological consumption. Transmission volumes climbed 9% year-over-year, but average booking tariffs declined, reducing capacity booking revenue by RON 89 million. Commodity revenue edged up by RON 2 million, while auction premium and balancing revenue fell by RON 24 million and RON 73 million, respectively.
Regulated revenue for the 2026–2027 gas year was approved at RON 2.6 billion, a 40% increase, though transmission tariffs were cut by 9% per entry point and 7% per exit point. The regulated asset base is estimated at RON 9 billion, with annual depreciation projected at RON 550–560 million. The company also noted a one-off RON 41 million contingency maintenance cost and an estimated RON 300 million recovery from 2025.
Transgaz secured a EUR 400 million financing package to support investments through 2027, including a EUR 300 million loan from Banca Transilvania and a EUR 100 million syndicated facility. Projects slated for commissioning in 2027 include Negru Vodă 1, Podișor, Bibești, and Jupa expansions, which will enter the regulated asset base in 2028.
The company’s stock fell 4.25% to $92.30 immediately after the earnings release, extending losses to $90.90 by the close. The shares trade within a 52-week range of $46 to $102.
Management highlighted that results outperformed internal budgets, with revenue and net profit exceeding targets by 16% and 11%, respectively. However, the decline in average booking tariffs—attributed to longer-term market bookings—reduced revenue by RON 89 million. The company reiterated its strategy to expand transmission capacity as a corridor for gas supply to Moldova, Ukraine, Croatia, Austria, and Hungary.
