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Introduction & Market Context
Romanian natural gas producer Societatea Nationala de Gaze Naturale Romgaz SA (BVB:SNG) released its Q3 2025 investor presentation on November 14, showcasing strong financial performance and strategic developments. The company's stock price has responded positively to these results, trading at RON 6.09, up 1.32% following the announcement, and has surged approximately 90% year-to-date according to company executives.
Romgaz maintains its position as Romania's largest gas producer with a 53% share of domestic production and approximately 55% of domestic consumption. The company's performance comes as Romania solidified its status as the EU's leading gas producer in 2024, highlighting Romgaz's strategic importance in the regional energy landscape.
Quarterly Performance Highlights
Romgaz delivered exceptional financial results for Q3 2025, with net profit increasing by 73% year-over-year to RON 755 million. This impressive growth was supported by a 4% increase in quarterly revenues to RON 1,800 million and a substantial 50% rise in EBITDA to RON 1,008 million.
The company's performance for the first nine months of 2025 also showed solid growth, with revenues reaching RON 6,048 million (+7% y/y), EBITDA of RON 3,315 million (+10% y/y), and net profit of RON 2,434 million (+7% y/y). These results were achieved despite ongoing regulatory challenges in the Romanian energy sector.
As shown in the following performance highlights chart, Romgaz has maintained strong profitability margins while growing its business:
Gas production remained stable at 3.68 bcm for the first nine months of 2025, with a slight increase of 0.1% year-over-year. The company's average daily production in this period was 13.4 million m³. Operational improvements included bringing 5 new wells into production (contributing 32.7 million m³) and restarting 133 wells after workover operations (adding 191.9 million m³).
Detailed Financial Analysis
Romgaz has demonstrated robust profitability despite market volatility, with the EBITDA margin reaching 54.8% for 9M 2025 and 56.0% for Q3 2025. The net profit margin also remained strong at 40.3% for 9M 2025 and 42.0% for Q3 2025.
The following chart illustrates the company's consistent profitability margins across different segments:
The company's consolidated financial performance shows a comprehensive view of its operations, with detailed profit and loss figures:
Romgaz maintains a strong balance sheet with a total cash position of RON 3,566 million and a net cash position of RON 342 million as of September 30, 2025. The company has successfully implemented an EMTN (Euro Medium Term Note) program with two EUR 500 million bond issuances (September 30, 2024, and October 7, 2025), along with credit lines totaling EUR 475 million.
Capital expenditures for 9M 2025 reached RON 2.84 billion, with RON 2.07 billion allocated to the strategic Neptun Deep project. Additional investments were directed toward exploration and production activities, with 7 wells being drilled and 2 in execution during this period.
Strategic Initiatives
Romgaz's business is diversified across four main segments, with gas exploration, production, and supply generating 89% of revenues and over 100% of EBITDA in 9M 2025. The company also operates in underground gas storage (7% of revenues), electricity production (4% of revenues), and other supporting activities (6% of revenues).
The following chart provides a detailed breakdown of Romgaz's business segments:
The Neptun Deep project represents Romgaz's most significant growth initiative. In partnership with OMV Petrom, the company will invest up to EUR 4 billion (50% each) in this offshore gas project. First gas production is expected in 2027, with production at plateau estimated at approximately 8 bcm annually for almost 10 years. This project is poised to further strengthen Romania's position as the EU's largest gas producer.
Romgaz has also approved a comprehensive Decarbonization Strategy for 2025-2050, which aims to reduce greenhouse gas emissions by 78% by 2030 compared to 1990 levels. The strategy includes ambitious targets for renewable energy development, green hydrogen production, and carbon capture technologies.
The company's decarbonization investments will be allocated across various technologies, with the majority (54-77%) directed toward renewable energy sources:
Forward-Looking Statements
Romgaz's growth strategy is built on four key pillars: developing the existing portfolio, strengthening market share, broadening the energy portfolio, and achieving operational efficiency through digital transformation. The company aims to increase its market share by 3% by 2025 compared to 2021 levels.
The company's shareholding structure remains stable, with the Romanian State maintaining a 70% ownership stake. The remaining 30% is held by other shareholders, including institutional and retail investors. Romgaz's stock has shown strong performance over the past 12 months, reflecting investor confidence in the company's strategy and execution.
Looking ahead, Romgaz is well-positioned to benefit from its strategic investments in the Neptun Deep project and renewable energy initiatives. The company's strong financial position, operational efficiency, and clear strategic direction provide a solid foundation for continued growth in the coming years.
The combination of robust financial performance, strategic investments in future growth, and a clear decarbonization roadmap positions Romgaz as a key player in Romania's energy sector and an increasingly important contributor to Europe's energy security.
Full presentation:
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