S.N.T.G.N. Transgaz (TGN) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 rose 424% year-over-year to 158.9 million lei, driven by higher regulated tariffs, updated transmission tariffs, and increased construction activity revenue.

• Operating revenue before balancing and construction increased 128% year-over-year, mainly due to tariff updates and capacity booking.

• Major development projects and strategic investments are planned for 2024-2033, focusing on interconnectivity, hydrogen transmission, and infrastructure upgrades.

Financial highlights

• Regulated revenue for the period starting October 2024 was RON 1.6 billion, with a total of RON 2,005 million.

• Turnover for the first nine months of 2024 reached 1.44 billion lei, up 11% year-over-year.

• EBITDA increased 52% to 464.6 million lei, with a gross profit ratio of 13.82% (up from 4.03%).

• Consolidated net profit rose 373% to 144.2 million lei, with consolidated operating revenue up 137%.

• Financial revenue was negatively impacted by RON 42 million due to lower inflation and debt revaluation, while financial expenses dropped 36%.

Outlook and guidance

• Strategic objectives include expanding interconnectivity, integrating hydrogen, and modernizing infrastructure.

• Major projects through 2033 target increased capacity, new interconnections, and compliance with EU energy directives.

• The difference in royalty rates (from 0.4% to 11.5%) will be recovered through regulated revenue in 2024-2025.

• Approved regulated revenue for gas transmission for 1 Oct 2024–30 Sep 2025 is lei 2.01 billion.