Societatea Naţională de Gaze Naturale Romgaz S.A. - Mediaş - România
NO. 2220/17.01.2023
ENDORSED,
CHAIRMAN of the BOARD OF DIRECTORS,
Dan Dragoș DRĂGAN
TO,
The GENERAL MEETING OF SHAREHOLDERS of S.N.G.N. ROMGAZ S.A. MEDIAS
Information Note on the 2023 CONSOLIDATED Income and Expenditure Budget
of Romgaz Group
The 2023 Consolidated Income and Expenditure Budget was prepared for Romgaz Group on the basis of individual budgets of SNGN Romgaz SA Medias (hereinafter referred to as the Company/Parent Company) and of the two subsidiaries: SNGN Romgaz SA - Filiala de Înmagazinare Gaze Naturale Depogaz Ploiești SRL (hereinafter referred to as - Depogaz/the Subsidiary) and Romgaz Black Sea Limited (hereinafter referred to as - Romgaz Black Sea Limited), adjusted for consolidation.
By ANRE Decision no. 151/22.01.2014, the title holder of Storage License no. 1942/22.01.2014 for operating the natural underground storage system changed, being transferred from SNGN Romgaz SA Mediaș to SNGN Romgaz SA - Filiala de
Înmagazinare Gaze Naturale Depogaz Ploiești SRL. As of April 1, 2018, the natural
gas storage activity has been carried out within Depogaz.
On August 1, 2022 the transaction to acquire all shares issued by ExxonMobil Exploration and Production Romania Limited ("EMEPRL") was completed.
Following this acquisition, Romgaz became sole shareholder of EMEPRL, currently Romgaz Black Sea Limited, holding 50% of the acquired rights and obligations under Petroleum Agreement for the deep water zone of XIX Neptun block in the Black Sea.
Therefore, as of August 1, 2022 SNGN Romgaz SA includes this subsidiary's Income and Expenditures Budget in the consolidated Income and Expenditures Budget.
- Main Indicators of the Individual Income and Expenditures Budgets (for each entity).
The budgets approved for 2023 provided for the transfer of fixed assets to the Subsidiary as of January 01, 2024. Therefore, both Depogaz and the Parent Company prepared their own income and expenditure budget having in mind the
Capital social: 385.422.400 lei | S.N.G.N. Romgaz S.A. | |
551130, Piaţa C.I. Motaş, nr.4 | ||
CIF: RO 14056826 | ||
Mediaş, jud. Sibiu - România | ||
Nr. Ord.reg.com/an : J32/392/2001 | Telefon 004-0374-401020 | |
RO | RNCB 0231 0195 2533 0001 - BCR Mediaş | Fax 004-0269-846901 |
E-mail: secretariat@romgaz.ro | ||
RO12 BRDE 330S V024 6190 3300 - BRD Mediaş | ||
www.romgaz.ro |
termination as of January 1, 2024 of the lease of specific assets from the parent company.
In 2024, the effect of the asset transfer is reflected in the decrease of income in the parent company (from leases), while as for the subsidiary it is reflected in the decreased expenses with paid lease and increased expenses with depreciation. We mention that, the fixed assets used in the storage activity owned by Romgaz, for transfer to the Subsidiary, were recorded as current assets as assets held for disposal and as a result they are not depreciated in the individual budget of the parent company. In drawing up of the consolidated budget, this depreciation is taken into account because at Group level these assets are of a fixed assets nature.
As of August 1, 2022 Romgaz finances the operating activity and the investments of Romgaz Black Sea Limited. In this respect, Romgaz grants loans to Romgaz Black Sea Limited, with their reimbursement after production starts and income is recorded from gas sales. The interest rate for these loans is estimated to 10%/year in 2023 (ROBOR 12M+1.74%).
Please find below the indicators representing the income, expenses and profit included in the income and expenditure budget of the three entities:
Table 1
Item | S P E C I F I C A T I O N | Romgaz | Depogaz | Romgaz Black Sea | |||||||
2023 | 2023 | Limited | |||||||||
No. | RON thousand | ||||||||||
proposal | proposal | 2023 proposal | |||||||||
0 | 1 | 2 | 3 | 4 | |||||||
1 | TOTAL INCOME, including: | 10 408 85 | 527 929 | - | |||||||
1.1. | Operating income | 10 324 398 | 526 579 | - | |||||||
1.2. | Financial income | 84 087 | 1 350 | - | |||||||
2 | TOTAL EXPENSES | 7 826 527 | 469 690 | 91 064 | |||||||
2.1. | Operating expenses | 7 603 029 | 469 690 | 50 969 | |||||||
A | Expenses for goods and services | 964 019 | 341 194 | 30 022 | |||||||
B | Expenses for taxes, duties and similar | 4 181 777 | 18 402 | 1 144 | |||||||
payments | |||||||||||
C | Personnel-related expenses | 1 066 619 | 93 086 | 9 155 | |||||||
D | Other operating expenses | 1 390 613 | 17 007 | 10 648 | |||||||
2.2. | Financial expenses | 223 499 | - | 40 095 | |||||||
3 | GROSS PROFIT | 2 581 958 | 58 239 | - 91 064 | |||||||
- Individual Budget Items to be consolidated into the Group's
Consolidated Income and Expenditure Budget
Bearing in mind that S.N.G.N. Romgaz S.A. Medias is the sole shareholder of Depogaz and Romgaz Black Sea Limited, and that the securities of the parent
Budgets, Economic Analyses | 2 |
company are traded on a regulated market, it is necessary to consolidate the income and expenditure budgets.
Consolidation at Group level has the role to inform about the indicators that do not include transactions (income/expenses) recorded between the parent company and the subsidiaries, such transactions affecting the indicator levels.
The separate budgets are cumulated for consolidation (income and expenses), while the intra-group transactions are excluded, namely the transactions between the parent company and the subsidiaries and the consolidation adjustments are added.
The following table shows the elements (income/expenses) excluded by consolidation from the group's income and expenditure budget:
Table 2
Depogaz | Depogaz | ||||||||||||||
and | and | ||||||||||||||
RON thousand | Romgaz | Romgaz | Romgaz | Romgaz | Total | Total | |||||||||
Income | Expenses | Black Sea | Black Sea | Income | Expenses | ||||||||||
Limited | Limited | ||||||||||||||
Income | Expenses | ||||||||||||||
Natural gas | |||||||||||||||
underground | |||||||||||||||
storage services | 102 300 | 102 300 | 102 300 | 102 300 | |||||||||||
Asset lease | 103 483 | 103 483 | 103 483 | 103 483 | |||||||||||
Natural gas | |||||||||||||||
delivered for | |||||||||||||||
technological | |||||||||||||||
consumption | 83 524 | 83 524 | 83 524 | 83 524 | |||||||||||
Transport | |||||||||||||||
services | 4 000 | 4 000 | 4 000 | 4 000 | |||||||||||
Other services | |||||||||||||||
(water, third- | |||||||||||||||
party expenses) | 98 | 98 | 98 | 98 | |||||||||||
Interest | 39 846 | 39 846 | 39 846 | 39 846 | |||||||||||
TOTAL | 230 952 | 102 300 | 102 300 | 230 952 | 333 251 | 333 251 | |||||||||
Loans granted | Loans received by | For operating | For investments | ||||||||||||
RON thousand | by Romgaz | Romgaz Black Sea | activity | financing | |||||||||||
financing | |||||||||||||||
Investments | 937 144 | 937 144 | 61 068 | 876 077 |
The adjustments according to IFRS which are added to the consolidated budget consist in the annulment of dividends received from Depogaz and re-establishment of expenses with depreciation of fixed assets owned by Romgaz leased to Depogaz. In Romgaz accounting, these fixed assets represent current assets in the form of assets held for disposal and which, according to IFRS are not depreciated. From the Group's point of view, these assets represent fixed assets that generate
Budgets, Economic Analyses | 3 |
depreciation. We mention that these adjustments affect gross result of Romgaz Group.
- Consolidated Income and Expenditure Budget of S.N.G.N. Romgaz S.A. Medias Group
After excluding the transactions between the parent company and the subsidiaries, and adding the other consolidation adjustments, the main indicators in the Group`s consolidated income and expenditure budget are shown in the table below:
Table 3
S P E C I F I C | Romgaz | Total 2023 | |||||||||||||||||||||
Item | Romgaz 2023 | Depogaz | Black Sea | Consolidat | Adjustments | Consolidated | |||||||||||||||||
A T I O N | Budget | 2023 Budget | Limited | Income and | |||||||||||||||||||
No. | ions | acc. to IFRS | |||||||||||||||||||||
RON thousand | Proposal | Proposal | 2023 Budget | Expenditure | |||||||||||||||||||
Proposal | Budget | ||||||||||||||||||||||
0 | 1 | 2 | 3 | 4 | 5(-) | 6(+) | 7=2+3+4-5+6 | ||||||||||||||||
TOTAL | |||||||||||||||||||||||
1 | INCOME, out of | 10 408 485 | 527 929 | - | 333 251 | - 43 818 | 10 559 344 | ||||||||||||||||
which: | |||||||||||||||||||||||
1.1. | Operating | 10 324 398 | 526 579 | - | 293 406 | - | 10 557 571 | ||||||||||||||||
income | |||||||||||||||||||||||
1.2. | Financial | 84 087 | 1 350 | - | 39 846 | - 43 818 | 1 773 | ||||||||||||||||
income | |||||||||||||||||||||||
TOTAL | |||||||||||||||||||||||
2 | EXPENSES, out | 7 826 527 | 469 690 | 91 064 | 333 251 | 97 920 | 8 151 949 | ||||||||||||||||
of which: | |||||||||||||||||||||||
2.1. | Operating | 7 603 029 | 469 690 | 50 969 | 293 406 | 97 920 | 7 928 202 | ||||||||||||||||
expenses | |||||||||||||||||||||||
Expenses for | |||||||||||||||||||||||
A | goods and | 964 019 | 341 194 | 30 022 | 293 406 | - | 1 041 830 | ||||||||||||||||
services | |||||||||||||||||||||||
Expenses with | |||||||||||||||||||||||
B | taxes, duties | 4 181 777 | 18 402 | 1 144 | - | - | 4 201 323 | ||||||||||||||||
and similar | |||||||||||||||||||||||
payments | |||||||||||||||||||||||
Personnel- | |||||||||||||||||||||||
C | related | 1 066 619 | 93 086 | 9 155 | - | - | 1 168 860 | ||||||||||||||||
expenses | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
D | operating | 1 390 613 | 17 007 | 10 648 | - | 97 920 | 1 516 189 | ||||||||||||||||
expenses | |||||||||||||||||||||||
2.2. | Financial | 223 499 | 40 095 | 39 846 | - | 223 748 | |||||||||||||||||
expenses | |||||||||||||||||||||||
3=1- | GROSS PROFIT | 2 581 958 | 58 239 | - 91 064 | - 141 738 | 2 407 395 | |||||||||||||||||
2 | |||||||||||||||||||||||
4 | INVESTMENTS | 2 298 900 | 72 500 | 736 199 | 937 144 | - | 2 170 455 | ||||||||||||||||
In the parent company's Individual Income and Expenditure Budget, the expenses related to planned investments amount to RON 2,298,900 thousand (including credit reimbursements), financed from own sources, credits for investments and the National Investment Program.
Depogaz Income and Expenditure Budget provides for 2023 investments in the amount of RON 72,500 thousand and the financing sources are as follows:
- from depreciation RON 13,808 thousand,
- from current profit RON 21,569 thousand,
Budgets, Economic Analyses | 4 |
- from previous profit RON 37,123 thousand.
Romgaz Black Sea Limited Income and Expenditure Budget provides for 2023 investments in the amount of RON 736,199 thousand, and the investments financing sources are loans granted by the parent company.
The Group's consolidated income and expenditure budget shall be submitted for information to SNGN Romgaz SA Medias Ordinary General Meeting of Shareholders, simplified (only Annex 1 of 2023 Consolidated Income and Expenditure Budget).
Annexes:
Annex 1: Income and Expenditure Budget - consolidated for 2023;
The proposal for 2023 Consolidated Income and Expenditure Budget of S.N.G.N. Romgaz S.A. Medias Group was submitted to the attention of the Board of Directors during the meeting of January 16, 2023.
Taking into account the above mentioned, we hereby submit to the attention of the Ordinary General Meeting of Shareholders of S.N.G.N. Romgaz S.A. the 2023 Consolidated Income and Expenditure Budget of S.N.G.N. Romgaz S.A. Medias Group.
CHIEF EXECUTIVE OFFICER
Răzvan POPESCU
CHIEF FINANCIAL OFFICER
Gabriela TRÂNBIȚAȘ
ACCOUNTING DEPARTMENT DIRECTOR
Marius VEZA
Budgets, Economic Analyses | 5 |
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SNGN Romgaz SA published this content on 18 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 January 2023 11:09:02 UTC.