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ROMGAZ – 9 Months 2014 Results November 2014
2
Disclaimer
This document does not constitute a recommendation, an offer or invitation, or solicitation of an offer, to subscribe for or purchase any securities and
neither this document nor anything contained herein shall form the basis of any contract, investment decisions or commitment whatsoever. This
document does not include any financial analysis or financial research and may not be construed to be a or form part of a prospectus. It is being
furnished to you solely for your information. This document and its contents are proprietary to S.N.G.N ROMGAZ S.A. (“the Company”) and neither
this document nor any part of it may be reproduced or redistributed to any other person. It may be amended and supplemented.
No reliance may be placed for any purpose whatsoever on the information contained in this document, or any other material discussed verbally, or on
its completeness, accuracy or fairness. None of the Company, connected persons, their respective affiliates, or any other person accepts any liability
whatsoever for any loss or damage howsoever arising, directly or indirectly, from any use of this document or its contents. The information and
opinions contained herein are provided as at the date of this document.
This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality,
state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require
any registration or licensing within such jurisdiction. In particular, no recipient of this document or any copy or part hereof shall reproduce, forward,
retransmit or otherwise redistribute this document or any copy or part hereof, directly or indirectly, in or into the United States, Canada, Japan or
Australia.
This document includes ”forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and section 21E of the
U.S. Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this document, including,
without limitation, those regarding the Company’s financial position, business strategy, plans, and objectives of management for future operations
(including development plans and objectives relating to the Company’s products), are forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company,
or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking
statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies
and the environment in which the Company will operate in the future and speak only as of the date of this document. None of the future projections,
expectations, estimates or prospects in this document should in particular be taken as forecasts or promises nor should they be taken as implying
any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been
prepared or the information and statements contained herein are accurate or complete. As a result of these risks, uncertainties and assumptions, you
should in particular not place reliance on these forward-looking statements as a prediction of actual results or otherwise.
This document does not purport to contain all information that may be necessary in respect of the Company or its shares and in any event each
person receiving this document needs to make an independent assessment. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any statements including any forward-looking statements contained herein to reflect any change in the
Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
All figures included in the presentation are rounded (“round to nearest” method).
3
Company Overview
1 Based on CPR prepared by DeGolyer&MacNaughton updated to June 30, 2013 2 Distributed from the year’s net profit
Gas
Exploration &
Production
• Onshore mature natural gas reserves base1: 1P 62 bcm, 2P 75 bcm
• Production: 4.23 bcm in 9M 2014 (vs 4.20 bcm in 9M 2013 and 5.65 bcm in FY2013)
• >140 commercial gas fields
• Significant onshore and offshore exploration potential
Gas Supply • Around 50% market share of gas resources in Romania in 9M 2014 (production +
imports)
Underground
Storage
Electricity Production
• Working capacity: 2.76 bcm, market share of 90%
• Regulated activity (revenue-cap methodology)
• 800 MW installed capacity, 1,216 GWh total delivery in 9M 2014
Key Financials
(million RON)
2013 9M 2013 9M 2014
• Revenue 3,894 2,587 3,287
• EBITDA 1,960 1,475 1,918
EBITDA margin 50.3% 57.0% 58.3%
• Net Profit 996 797 1,114
Net margin 25.6% 30.8% 33.9%
• Dividends2 991 - -
• CAPEX 848 583 751
Largest Reserve Holder, Producer and Supplier of Natural Gas in Romania
4
Key Results for 2012-2014
Romgaz delivered strong EBITDA and Profit margins
Revenues advanced by 27.0% y/y in 9M 2014 (+1.5% y/y in 2013)
EBITDA: +30.0% y/y in 9M to RON 1,918 mln;
Profit after tax: +39.8% y/y to RON 1,114 mln in 9M 2014
EBITDA margins are elevated at 58.3% in 9M 2014 and 50.3% in FY2013
Net margin is also improving to 33.9% in 9M 2014 compared to 25.6% in FY2013.
Positive financial performance reported during 2012 – 9M 2014
3,838
1,854
1,119
3,894
1,960
996
2,587
1,475
797
3,287
1,918
1,114
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Revenues
EBITDA
Net Profit
9M 2014
9M 2013
2013
2012
RON million
5
Factors contributing to the financial result
Higher gas prices
45.7 45.7 45.7 48.5 49.8 50.6 51.8 53.3
45.7 49.0 55.3
63.4 68.3 72
89.4 89.4
0
20
40
60
80
100
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
RO
N /
MW
h
Households
Non-households
Higher storage tariffs
5.65 5.65
13.12 13.14 2.76 2.76
2.37 2.53
2.76 2.76
1.80 1.80
0
2
4
6
8
10
12
14
16
18
20
2010-2012 2012-2013 2013-2014 2014-2015
RO
N / M
Wh
Extraction
Injection
Capacity Reservation
Favorable Financial Performance in 9M 2014
Profit and loss account
Romgaz continues to post elevated profitability
Selected P&L items RON
Main events in Q3 were the state’s decision to delay the deadline for the gas
price deregulation process for households to mid-2021 and to decrease the
social insurance contribution rate paid by employers by 5%
“Other expenses” include gas royalties and other related taxes: gas royalty is
typically the largest item (9M 2014: RON 205 mln, 9M 2013: RON 159 mln)
Windfall profit tax is set on the additional revenues obtained by natural gas
producers as a result of price deregulation until 31 Dec 2014 (9M 2014: RON
235 mln, 9M 2013: RON 56 mln); also, the new tax paid on special
constructions amounted to RON 67 mln in 9M 2014
“Other gains and losses” increased mainly due to the set-up in H1 of an
allowance for doubtful clients (impairment of Electrocentrale Galati receivable
following the initiation of insolvency procedure) with a minor increase
recorded in Q3
“Investment income” represents interest from cash deposits and state bonds
EBITDA margin (EBITDA as % of sales) improved to 58.3% in 9M 2014 (vs
57.0% in 9M 2013 and 50.3% in FY2013)
EBIT margin climbed to 41.1% in 9M 2014 (from 30.2% in 2013)
Also, Net margin advanced to 33.9% in 9M 2014 (vs 30.8% in 9M 2013 and
25.6% in FY2013).
RON mln 2011 2012 2013 9M 2013 9M 2014
Revenues - of which 4,195 3,838 3,894 2,587 3,287
Revenues from Gas Production 2,466 2,508 2,808 1,866 2,584
Revenue from Gas Resale 1,354 1,053 461 359 115
Revenue from Services 368 270 394 251 330
Revenue from Energy 207 98 243
Other income 82 134 54 40 97
Cost of commodities sold -1,169 -905 -439 -338 -155
Changes in inventory 81 111 56 141 30
Raw materials -131 -118 -79 -88 -38
Exploration expense -187 -193 -59 -25 -21
Employee benefit expense -478 -503 -481 -388 -324
Other gains and losses 77 -50 -204 -41 -196
Other expenses -506 -436 -768 -398 -751
Unwinding costs -24 -24 -13 -15 -12
EBITDA 1,940 1,854 1,960 1,475 1,918
EBITDA margin 48.3% 50.3% 57.0% 58.3%
D&A -703 -606 -782 -602 -569
EBIT 1,237 1,248 1,177 874 1,349
EBIT margin 32.5% 30.2% 33.8% 41.1%
Investment income 107 148 123 84 58
Profit before tax 1,342 1,396 1,301 957 1,407
Income tax -155 -276 -305 -161 -293
Net Profit 1,188 1,119 996 797 1,114
Net margin 28.3% 29.2% 25.6% 30.8% 33.9%
6
Breakdown of Revenues
The main source of revenue of Romgaz is the sale of gas production, which increased in
the last year mostly as a result of higher prices.
Until 2014, the secondary source of revenue was the resale of imported gas; related
sales recorded a downward trend due to weaker market demand as well as to the ANRE
Order no 24/2013
Revenue from gas storage improved mostly due to higher tariffs.
Romgaz started the electric power production after the takeover of Iernut plant in 2013.
1
1
2
3
2
3
4
4
Financial Performance
Balance Sheet Summary
Robust Balance Sheet Structure, Debt-free
Selected Balance Sheet Items
mln RON 2011 2012 2013 9M 2014
Total non-current assets, thereof 6,644 6,190 6,246 6,364
Property plant and equipment 6,364 5,881 5,767 5,921
Other intangible assets 118 231 384 348
Trade and other receivables 145 53 - -
Total current assets, thereof 4,066 4,215 4,231 3,897
Inventories 451 508 464 407
Trade and other receivables 931 907 1,087 447
Govt securities and bank depos
(+3mo maturity) 1,090 928 971 1,176
Cash and equivalents 1,429 1,739 1,564 1,704
Other assets 166 132 146 163
Total assets 10,710 10,405 10,477 10,262
Shareholders‘ Equity
Share capital 1,890 1,890 1,893 385
Reserves 1,681 1,774 1,950 2,112
Retained earnings 5,593 5,681 5,450 6,919
Total equity 9,164 9,345 9,293 9,416
Non-current liabilities, thereof 573 486 423 414
Provisions 253 165 197 197
Current liabilities
Trade and other payables 639 293 203 119
Other liabilities (incl. due divids) 335 281 559 312
Total current liabilities 974 574 762 431
Total liabilities 1,547 1,060 1,184 846
Total equity and liabilities 10,710 10,405 10,477 10,262 7
Selected Cash Flow Items
RON mln 2011 2012 2013 9M 2014
Net profit for the year 1,188 1,119 996 1,114
Operating Cash Flow before Δ WC 2,058 2,099 2,249 2,121
Movements in working capital 983 -350 -278 311
Cash flows from operating activities 2,774 1,452 1,687 1,998
Cash flows from investing activities -1,441 -196 -802 -871
Cash flows from financing activities -713 -945 -1,060 -987
Net increase/(decrease) in cash and cash
equivalents 620 311 -176 140
Working Capital
RON mln 2011 2012 2013 9M 2014
Inventories 451 508 464 407
Trade and other receivables 931 907 1,087 447
Trade and other payables 639 293 203 119
Borrowings 7 0 0 0
Current tax liabilities 79 68 201 69
Other liabilities 229 185 311 208
Trade working capital 429 869 836 458
Cash and cash equivalents 1,429 1,739 1,564 1,704
WC 1,857 2,609 2,400 2,162
Trade WC ratio* 10.2% 22.7% 21.5% 13.9%
WC ratio* (* interim sales not annualised)
44.3%
68.0%
61.6%
65.8%
8
Key Financial Data
Romgaz offers Healthy FCF combined with a +50% Dividend Payout Ratio
Sales (RON mln) EBITDA Breakdown (RON mln)
Net Cash and other Short Term Financial Assets (RON mln) Dividends (RON mln) and Dividend Payout Ratios
938 1,060
991
79.0% 94.7%
99.5%
2011 2012 2013
Dividends Dividend Payout Ratio (%)
3,854 3,595 3,314
2,259 2,819
345 245
365
227
307
-351 -345 -336 -253 -328
349 343 551
355
489
2011 2012 2013 9M 2013 9M 2014
Upstream Storage Adjustment and eliminations Others
2010
1,733 1,772 1,552
1,280 1,639
190 80 270
163
175
17 2 138
48
103
2011 2012 2013 9M 2013 9M 2014
Upstream Storage Others
1,429 1,739 1,564
1,890 1,704
1,090 928
971 464 1,176
2011 2012 2013 9M 2013 9M 2014
Cash Govt securities and bank depos with maturity over 3 months
9
Gas Resource Overview in the Country
Mature Market With Long History of Production and Significant Upside Opportunities
Mature province with more than
100 years of production history
from conventional reservoirs
Recent use of new technologies
to mitigate production decline
Large discovered resources to
be brought on stream
Significant exploration potential
from conventional and
unconventional reservoirs
Recent offshore discoveries in
Black Sea
Source:Romgaz, ANRE
Brodina
Moldova Nord
Moldova Sud
Bacau Nord
Bacau Sud
Transilvania
Nord
Transilvania
Centru
Transilvania
Sud
Est
Depresiunea
Panonica
Est Rapsodia
Trident Romgaz licenses
Muntenia
Nord-Est
OMV PETROM Exploration Blocks
Romgaz commercial fields
OMV PETROM Commercial Fields
Total Gas Consumption in Romania 2003-2014* (bcm)
12.9 12.7 12.4 12.1 11.6 11.1 11.1 11.5 11.0 10.3 10.6 7.9 8.0
5.4 5.0 5.2 5.2 4.8
4.4 2.0 2.3 3.2
3.2 1.9
1.2 0.4
18.3 17.7 17.6 17.3 16.4
15.5
13.1 13.8 14.2
13.5 12.5
9.2 8.4
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 9M2013
9M2014
Domestic production Imports
Oltenia Muntenia
Centru
* Available Resources - for interim periods
10
4 14.8%
9 33.3%
14 51.9% 62
71.3%
13 14.9%
12 13.8%
Romgaz: Reserves and Resources
Sizeable reserve base with a signification portion proven developed
Source: CPR prepared by DeGolyer&MacNaughton updated to June 30, 2013. 1 Probable and possible reserves have not been risk adjusted to make them comparable to proved reserves.. 2 Application of any risk factor to contingent resources quantities does not equate contingent resources with reserves.
• Three production areas: Transylvanian Basin (around 90% of
production); Muntenia Moesian Platform and Moldavia Platform
• 25 fields hold about 70% of Romgaz reserves (average size of
proved reserves per average field is of 450 million m3, with 17
fields with over 1 bcm)
• Recovery factors between 55% and 85% for most fields (90% in
the more mature fields)
• Six gas storage facilities – native gas acts as cushion gas in the
storage process
Reserves1 and Contingent Resources2 (bcm / % of total) Revisions and New Discoveries Reserve Replacement Ratio (%)
• Reevaluation driven by investment in well workovers and installation
of compressors
• Effect of increasing gas prices
• Bringing existing discoveries on-stream
• New discoveries
Proved Probable Possible 1C 2C 3C
57 49
92
152
298
70
2008 2009 2010 2011 2012 2013
11
Exploration Works 2010-2013 of the Key Nine Blocks
Exploration Overview
Significant Resource Upside Potential
Petroleum agreements for 9 onshore exploration blocks (about
17,650 km² across the Transylvania, Moldova, Oltenia and Muntenia
basins) with 100% working interests
• 30 gas accumulations were discovered since 2000 contributing
over 3.8 bcm cumulative production
• Contingent resources (C2) in 21 discoveries of c. 19.4 bcm
2011 2012 2013
Units RON
mln Units
RON
mln Units
RON
mln
3D (km2) - - 700 52 1,830 145
2D (km2) 1,114 47 517 23 224 9
Well drilling 7 121 5 66 25 206
Other works(1) - 15 - 9 - 7
Exploration Drilling Program 2014-2015
2014 2015
Contingent
Resources
(C2)
No. of wells 13 13
Assessments of
resources (bcm)2
25.0 12.3
Prospective
Resources
(P50)
No. of wells 12 6
Assessments of
resources (bcm)2
17.5 13.6
Finalized wells as of September 2014
Contingent resources – 2 wells (2.3 bcm confirmed accumulations)
Prospective resources – 4 wells (1.5 bcm-P50 new accumulations)
Under testing – 4 wells and 5 well drilling in progress
Current exploration phase 2011-2016 with 3D/2D seismic data and 75 wells
Total investment of approximately $520 mln
Development programme in progress for 36 new wells tested (20 were
successful, 12 were dryhole, the rest -4 - are currently in progress)
Total P50 unrisked prospective volumes of c. 80 bcm; prospects in both low-
risk and deeper horizons
10% interest in offshore exploration in the Black Sea with Lukoil and Vanco:
2 deep water blocks (East Rapsodia + Trident) for c. 2,000 km²
1 Other works: MT sounding, Gore-Sorber surveys and development for experimental production. 2 Based on Romgaz own assessment.
12
17.3
15.1
14.7
13.4
12.8
11.8
10.0
9.1
8.8
8.4
8.0
7.3
7.0
6.6
6.3
6.2
5.9
5.9
5.8
5.7
5.6
5.7
5.7
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Production of Natural Gas
Arresting Production Decline via Application of New Technologies
Arresting Production Decline – Enhanced Production from Selected Fields1
Production decline rate stabilized at below 1% over the last 5 years due to:
- Installation of gas compression and production enhancement/rehabilitation
- Acquisition of 3D seismic data, dynamic and static reservoir modelling
- Production from new discoveries
Works performed during 9M 2014:
- 9 new wells started production (output estimated at 10.8 mln cm for this period)
- 140 workover wells, up/downholes recompletion (output estimated at 95.4 mln cm in 9M)
Romgaz Annual Production 1990-2013
bc
m
1990–2002 CAGR (8.2)%
2003-2007
CAGR (4.2)%
2008-2013
CAGR (0.6)%
kb
oe
pd
1 Selected fields: (i) compression added Bazna, Filitelnic, Tg. Mures, (ii) production rehabilitation (Nades, Laslau, Roman) and (iii) 13 new producing fields. Production enhancement includes activities focused
mainly on well workovers and new completion techniques.
• Gas compression added to a number of fields
- Including Filitelnic, the largest field in Romgaz’s portfolio
• Production rehabilitation measures
- Romgaz driven for some fields
- Partnership with Schlumberger and Amromco for other fields
16.1 16.7 19.1 19.4 18.7 18.4 18.1
11.8 11.4
11.8 12.3 11.8 12.8 13.8
4.5 4.6
3.5 3.8 4.7
5.1 4.8
2007 2008 2009 2010 2011 2012 2013
Compressor Production enhancement New fields
13
Commercialising the Gas Total Gas Supply and main Customers
Largest Supplier of Gas in Romania (Domestic Production + Imports)
Largest Producer with entire production sold locally and an important Gas Importer
• Breakdown of volume sales: 55.2% un-regulated (for HH consumption 21.4% + industry 33.8%) and 44.8% regulated (HH 35.6% + industry 9.2%) at 9M 2014
• Around 60% of Romgaz’ upstream sales are to E.ON Energie and GDF Suez (in terms of value)
• 46% market share in total supply in 6M 2014 (ANRE latest data)
5,563 5,513 5,200
5,156 5,304
2,965
304 680 1,018 606 310
70
48% 48% 45%
42% 43% 46%
2009 2010 2011 2012 2013 6M 2014
Production Imports
Romgaz Gas Deliveries in Romania’s Total Supply Romgaz Key Upstream Clients H1 2014
Market share in total gas supplies
Sources: Romgaz Annual Reports, ANRE reports
millio
n c
m
33.3%
27.4%
16.6%
3.8%
3.6%
3.2%
1.7% 1.7%
8.8%
E.ON Energie
GDF Suez
Electrocentrale Bucuresti
Electrocentrale Galati
Conef
Azomures
Transgaz
Ten Gaz (former Amgaz)
Others
14
Storage and Power
Romgaz is the Largest Owner and Operator of Gas Underground Storage Facilities in Romania
Romgaz Entered the Power Segment with the Acquisition of Iernut Power Plant (CTE Iernut)
• Romgaz owns six facilities (90% market share) - working capacity 2.76 bcm
plus 40% stake in joint venture with Gaz de France - Depomures (300 mln cm)
• Regulated by ANRE using the revenue-cap methodology – third 5-year
regulatory period started in Apr 2013, royalties of 3% of operating revenues
• Capacity expansion plans - Sarmasel (0.9 bcm/cycle)
Underground Gas Storage Electricity Production
• In 2013 Romgaz expanded its business by the acquisition of CTE Iernut
Power Plant as settlement of a receivable worth RON 653 mln from
Electrocentrale Bucuresti
• Power plant with good strategic positioning in the middle of the Romanian
electricity system
• Power plant built between 1963-1967; an installed capacity of 800 MW
(4x100 MW, 2x200 MW); in 2013 the plant produced some 871 GWh
- 2x100 MW to be out of service in January 2016 (environmental issues)
- Units 5 & 6 (2x200 MW) can operate until 2020
- Units 1 & 4 (2x100 MW) being modernized (to reduce NOx emissions)
• Optimising gas production - electricity production - storage injection
• Future power strategy to be determined following the finalization of a
feasibility study (by the end of 2014)
UGS Working Capacity UGS Working Capacity
Bilciuresti • 1,310 mln cm/cycle Cetatea de
Balta
• 200 mln cm/cycle
Sarmasel • 800 mln cm/cycle Ghercesti • 150 mln cm/cycle
Urziceni • 360 mln cm/cycle Balaceanca • 50 mln cm/cycle
Seasonality of Gas Consumption in Romania
Source: ANRE
TW
h
0.00
5.00
10.00
15.00
20.00
25.00
Jan
-12
Fe
b-1
2
Ma
r-12
Ap
r-12
Ma
y-1
2
Jun
-12
Jul-1
2
Au
g-1
2
Se
p-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan
-13
Fe
b-1
3
Ma
r-13
Ap
r-13
Ma
y-1
3
Jun
-13
Jul-1
3
Au
g-1
3
Se
p-1
3
Oct-
13
Nov-1
3
Dec-1
3
Jan
-14
Fe
b-1
4
Ma
r-14
Ap
r-14
Ma
y-1
4
Jun
-14
Jul-1
4
15
Main strategic goals
Increase of the gas resources
and reserves portfolio
through the discovery of new
resources and the
improvement of the recovery
rate of already discovered
resources
Seeking New and Diversified
Growth Opportunities
Enhanced recovery and development of already discovered resources
- Extend the life of and the amounts recoverable from existing fields
- Appraisal of substantial contingent resource base and subsequent conversion into reserves
- Continue cooperation with Schlumberger and other partners
Discovery of new resources in established geological plays
- Further exploration program (existing and new licenses)
- Acquire additional blocks for exploration and development of conventional onshore gas
resources
Frontier Reservoirs
- Further development of on-shore sub-salt reservoirs
- Exploration of unconventional potential in Romania
- Increasing focus on deep water reservoirs (Black Sea)
Potential international opportunities
Increasing the company's
performance
Optimizing the Company's Policies and Procedures (monitoring and reporting)
Risk and Controls Management
IT systems
Increase the efficiency of the gas storage facilities in order to Enhance Gas Trading
Capabilities
Optimization, development
and diversification of the UGS
activity by reconsidering its
importance in view of safety,
continuity and flexibility of the
natural gas supply
16
Management Agenda 2014
Maintain the gas production decline below 1,5%/year
Investments over 1,1 billion RON,
mainly in exploration and
production
Gas and power market challenges
Modernisation and increase the
efficiency of the gas storage
facilities
Continue to increase the company’s
performance
17
Key Achievements
February 1, 2013
Romgaz took over Iernut
Power Plant (CTE Iernut) from
S.C. “Electrocentrale
Bucuresti” along with all the
elements closely related to it:
employees, contracts, current
assets.
2013 / 2014 Selected Events
February 1, 2013
Govt Ordinance no. 7 dated Jan 23, 2013
for establishing the tax on additional
income resulting from the price
deregulation in the natural gas sector has
entered into force.
Entered into an option Agreement with
OMV Petrom and ExxonMobil for the right
to acquire 10 % share in Midia XV Block
located in Black Sea.
April 26, 2013
ANRE (National Energy Regulatory
Authority) issued Order no. 26/2013
regarding the regulated tariff for supply
of UGS-related services by S.C.
ROMGAZ S.A., whereby the regulated
income for the 1st and 2nd year of the 3rd
regulatory period and the regulated
tariffs to be applied during April 2013-
March 2014 were approved.
June 12, 2013
The Board of Directors
appointed Mr. Virgil Marius
Metea as General Manager
to whom it delegated
several powers and the right
to act as the company’s
representative.
November 12, 2013
The company’s shares
entered trading the regulated
market of the Bucharest
Stock Exchange and of the
London Stock Exchange in
form of GDRs.
December 30, 2013
In accordance with the selection process
made as per the cumulative voting
procedure the General Meeting of
Shareholders appointed the new Board of
Directors members, out of which two
independent Directors had been nominated
by minority shareholders.
April 9, 2014
ANRE issued Order no. 29/2014
regarding regulated tariffs to be applied
during April 2014 – Dec 2014 for supply
of UGS-related services by S.C.
ROMGAZ S.A.
June 11, 2014
Govt issued Ordinance no
35/2014 requiring gas
producers to sell a minimum
volume of gas from own
production on centralised
markets in order to increase
transparency.
June-July, 2014
The Ordinary Meetings of
Shareholders, held in June
and July, appointed two
board members (Dumitru
Chisălită and Sergiu Manea)
to replace vacant positions.
September 30, 2014
Govt issued Law no 127 which amended
the gas price deregulation calendar,
postponing the deadline for price
liberalisation of gas supplied to
households to July 1, 2021.
September 22, 2014
Govt amended the Fiscal Code by reducing
with 5% the social insurance contribution
owed by employers in Romania (from
20.8% to 15.8% for normal work, from
25.8% to 20.8% for special work and from
30.8% to 25.8% for heavy work).
18
19
Shareholder Structure and Stock Performance
Romanian State 70%
Property Fund 10%
Free float 20%
Current shareholders structure includes: the Romanian State/Department of Energy – majority
shareholder with a 70% stake; Property Fund (listed entity) - 10%; free float (representing shares traded
on the BVB and GDRs traded on the LSE): 20%
The stock has a market capitalisation of EUR 3.0bn* and ranges the 2nd largest domestic stock traded on
the BVB (after OMV Petrom)
8.00
8.50
9.00
9.50
10.00
10.50
11.00
11.50
12.00
30.00
31.00
32.00
33.00
34.00
35.00
36.00
37.00
US
D/G
DR
RO
N/s
ha
re
Romgaz: Trading price chart
RON/share USD/GDR
* Based on the closing price on Nov 11, 2014
The Board of Directors
Experience:
- Ministry of Economy, OPSPI, (1997-2007, department head since 2009)
- AVAS, Authority for State Assets Recovery (2007-2009)
Experience:
- SC CHIMFOREX
SA, CEO (since
1998)
Popescu
Ecaterina Independent Non-
executive Member
Aurora Negrut – Chairperson
Non-executive Member
Experience:
- SNGN Romgaz
SA (various roles
including Gas
Trading Manager
and Interim General
Manager)
- SNTGN Transgaz
SA (various roles)
- Lecturer at
University of
Construction
Brasov (since
2008)
Dumitru
Chiselita Non-executive
Member
Experience:
- Brainovate, Partner
(since 2010)
- London School of
Business and
Finance, Associated
Lecturer (since 2012)
- Cohn & Jansen
JWT, Partner (since
2002)
- Boston Consulting
Group in Romania
(2006-2008)
- MBA (NIMBAS)
(1992-93)
Jansen Petrus
Antonius Maria Independent Non-
executive Member
Experience:
- 28 years
expertise in the
gas industry, of
which 22 years
in executive
roles in Schela
de Foraj Tg
Mures, Romgaz,
Distrigaz Nord,
EON Gaz
Virgil Metea Executive Member
Nominalization
& Remuneration
Committee
Audit
Committee
The Board Comprises a Balanced Team of Privatisation
Experts, Legal & Fiscal Advisors and Industry Specialists
20
Experience:
- Independent
Consultant (since
2013)
- EBRD Risk
Management,
Managing Director
(2011-2013)
- EBRD Risk
Management,
Director (2005-
2010)
David
Klingensmith Independent Non-
executive Member
Experience:
- BCR, Executive
VP (since 2012)
- ITHUBA Capital,
Managing
Partner (2010-
2012)
- Unicredit Group,
Managing
Director (2006-
2010)
- Bank Austria
Creditanstalt AG
(2005-2006)
- ABN AMRO
(2000-2005)
Sergiu Cristian
Manea Independent Non-
executive Member
21
Romgaz investor relations:
• Manuela Ogrinja [email protected]
• Adina Stefanescu
• Brandusa Serban
Homepage: www.romgaz.ro
Financial Calendar 2014
Nov 14: Conference call with financial analysts and
investors – 9M 2014 financial results