SNGN Romgaz S.A.

Romgaz reported 2025 total revenues of over RON 8 billion, up 1.2% year on year. Revenues from gas sold were over RON 6.9 billion, down marginally by 0.3%, as lower average selling prices offset a 5.5% increase in gas volumes sold to 4.82 bcm. Storage revenues rose 10% to RON 562 million, and electricity revenues rose almost 2% to RON 382 million. On profitability, net profit reached a record RON 3.35 billion versus RON 3.21 billion in 2024, with net margin at 41.7%; EBITDA margin was 54.9% and EBIT margin 46.2%. For Q4 2025, gas production was 1.28 bcm, gas sold at regulated prices was 10.23 TWh/tera, average selling price was RON 134 per megawatt hour, and quarterly net profit was RON 912 million. The group recorded windfall tax of RON 767 million, gas and UGS royalties of RON 559 million, and total finance cost of RON 183 million, of which RON 69 million was capitalized. CapEx in 2025 was RON 3.86 billion, including RON 2.74 billion in Neptun Deep; management said 2026 Neptun spend is expected to be around RON 3.5 billion. For 2026, management guided gas production of around 4.9 bcm, Q1 2026 regulated-price sales of around 10.38 TWh at about RON 137 per megawatt hour, and said regulated-price volumes for the full year will likely be around half of production, though the final allocation remains unknown.

Razvan Popescu emphasized that Romgaz is defending production through ongoing investments, workovers, compressor stations, and field digitalization, especially as mature onshore fields become harder to sustain. He stressed that Neptun Deep is central to the company’s long-term strategy and that the company wants to remain the main supplier in Romania as the market liberalizes further. His tone was confident but cautious, repeatedly noting that several 2026 variables remain unresolved, especially the new ordinance on regulated gas volumes and the final path for the supply business.

Gabriela Tranbitas addressed the tax and finance questions by pointing to a tax incentive linked to equity growth: income tax benefited from a 14% decrease as equity rose from RON 14 million in December 2024 to RON 17 billion in December 2025. She also clarified that of the RON 183 million total finance cost, RON 69 million was capitalized for the year. On the guarantee execution issue, management said about RON 60 million was recorded as executed and around RON 20 million still needs to be recovered, with legal action underway. Overall, the financial message was that profitability remained very strong, but the tax, interest capitalization, and recovery items still matter to the reported numbers.

Analysts focused on the impact of the regulated-gas scheme, the share of production sold at regulated prices, taxes, capitalized interest, and the outlook for 2026 production and dividends. Management said 2025 regulated-price volumes were around 80% of production, Q1 2026 is around 80% to 81%, and for Q4 2025 it sold 10.23 TWh at regulated prices at an average RON 134 per megawatt hour. On Iernut, Romgaz said it has become the EPC, is negotiating 58 contracts and site management, and still targets commissioning by end-2026; on dividends, it said payout should stay balanced because 2026 will be the company’s highest-capex year, with room to move back toward historical levels after Neptun Deep starts production.