S.N.T.G.N. Transgaz (TGN) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 rose 187% year-over-year to 453.3 million lei, driven by higher transmission tariffs, increased gas volumes, and capacity bookings.

• Revenue from operations increased by 148% to 950.1 million lei, with significant contributions from capacity booking and commodity tariffs.

• Turnover increased 159% to 1.07 billion lei, and EBITDA rose 171% to 601.6 million lei.

• The company’s Moldovan subsidiary doubled its net profit year-over-year and contributed 103 million lei in natural gas delivery services.

• Major infrastructure and hydrogen transmission projects are underway, supporting strategic growth and decarbonization.

Financial highlights

• Operating income before balancing and construction activity up 148% year-over-year to 950.1 million lei.

• Revenue from balancing activity increased 255% to 160.2 million lei.

• Construction activity revenue declined by 48% to 116.2 million lei.

• Consolidated net profit for the group reached 516.6 million lei, up 200% year-over-year.

• Equity increased to 4.78 billion lei, with market capitalization at 5.1 billion RON.

Outlook and guidance

• Approved regulated revenue for natural gas transmission for Oct 2024–Sep 2025 is 2,005 million lei, up from 1,647 million lei.

• Revenue from transmission in Q1 2025 exceeded regulatory estimates, with a projected annual surplus of RON 350 million to be returned to the market over two years.

• Strategic objectives focus on infrastructure modernization, hydrogen integration, and energy security.

• No budget revision is planned despite better-than-forecasted results; expectations remain positive for the rest of the year.

• The company expects the regulated price for technological consumption to be maintained for the rest of the year.