How was Romgaz able to post such results in the first six months, considering its sales fell 12.7 percent year-on-year? At the end of the first half if this year, Romgaz’s overdue receivables amounted to RON 391.6 mln (€92.6 mln), 7.4 times higher than the RON 52.9 mln (€14.4 mln) level registered in H1 2008.
The Deputy General Manager of the company, Lucian Stancu, told Business Standard that a cost cut was made with no layoffs, and the producer managed to cut more on the operating expense segment, which compensated for the decline in revenues. The reduction in gas imports from Russia, due to the drop in consumption, also had a good effect on the company’s financial results.
The gas sales of Petrom, Romania’s largest company and Romgaz’s main competitor dropped 27 percent in the second quarter, to 0.84 billion cubic meters, from 1.15 bln cubic meters in Q2 2008, as a reduction in activity in the petro-chemical industry was added to the normal decline in summer.
Romgaz and Petrom annually produce two thirds of the gas Romania needs. The country consumed 17.3 bln cubic meters of gas last year, one billion more than in 2007.
