Romania's Romgaz revises down by 20% wholesale contract with Engie
<p>Natural gas producer and supplier Romgaz (BVB: SNG) announced on July 10, in a note to investors, that the company has amended a sales-purchase agreement with Engie Romania, the largest gas distributor in Romania, as a result of the decrease in energy prices.</p>

<p>Following the change in the legislative framework (the price capping mechanism for residential end users), the contract changed from RON 150 per MWh to RON 120 per MWh, meaning a 20% decrease. Thus, the value of the agreement dropped from RON 289.4 million to RON 233 million, according to the note to investors.</p>

<p>Romgaz has budgeted for 2024 total revenues of RON 7.65 billion, down 9% from the company's initial estimates. The targeted gross profit is RON 2.34 billion, 22% less than this year's first budget planning.</p>

<p>In Q1/2024, the group posted a net profit of RON 1.2 billion, 28% up y/y. The turnover decreased by 22% y/y to RON 2.3 billion.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Inquam Photos/Adel Al</em>-<em>Haddad)</em></p>