Societatea Nationala De Gaze Naturale Romgaz S.a. · BVB:SNG
Societatea Nationala De Gaze Naturale Romgaz — SNGN Romgaz — FY2024 Earnings Presentation
37 slides from Societatea Nationala De Gaze Naturale Romgaz's earnings presentation, Feb 28, 2025
Slide 1: Investors Presentation Q4/Full Year 2024
Investors Presentation Q4/Full Year 2024 https://www.romgaz.ro/en/summary-results-and-presentations-investors February 28, 2025 1
Slide 2: Disclaimer
Disclaimer ROMGAZ Group (ROMGAZ or ROMGAZ Group or The Company) consists of SNGN ROMGAZ SA as parent company, Filiala de Înmagazinare Gaze Naturale Depogaz Ploieşti SRL (subsidiary owned 100% by ROMGAZ SA) and ROMGAZ Black Sea Limited (100% owned by ROMGAZ). This document was prepared by SNGN ROMGAZ
Slide 3: Contents
Contents 01 HIGHLIGHTS ROMGAZ in a Nutshell Performance in 2024 / Main regulatory framework 02 STRONG POSITION IN ROMANIA AND CEE 03 RELEVANT GROWTH OPPORTUNITIES 04 FINANCIAL PERFORMANCE, CAPEX, DIVIDENDS 05 ESG MINDSET TO ENHANCE EFFICIENCY 06 EXPERIENCED MANAGEMENT 07 BLUE CHIP ON THE BVB 3
Slide 4: 01 Highlights
01 HIGHLIGHTS 4
Slide 5: ROMGAZ – in a Nutshell
ROMGAZ – in a Nutshell State’s Growth ownership, Top gas producer opportunities Strong ESG mindset to experienced in Romania, driven by energy Profitability and strengthen Management Strong position in sector evolution Robust Balance operational Team, Blue-chip the CEE and expected Sheet efficiency
Slide 6: Highlights of performance for preliminary Q4/FY 2024
ROMGAZ Group - Highlights of performance for preliminary Q4/FY 2024 2024p: Market share in consumption from Capital Gas production domestically- Expenditures 4.96 bcm produced gas RON 3,167 mln +3.6% y/y Estim 58% Main Taxes EBITDA NET PROFIT* -24% y/y RON 3.22 bn, Revenues (Windfall Tax + Royalties
Slide 7: Highlights of performance for 2024
ROMGAZ Group - Highlights of performance for 2024 Inaugural EUR 500 mln ➢ The inaugural bond issue under the Euro Medium Term Notes Program of ROMGAZ (EMTN Programme) was concluded bond issue during a single day, on Sept 30, 2024. The issue amounts to EUR 500 mln, has an annual coupon of 4.75% and m
Slide 8: Romania – Overview of regulatory framework
Romania – Overview of regulatory framework GEO no. 156 / Dec 2024 ►A special construction tax of 1.0% was introduced in 2025; application norms to be released. GEO no. 91 / Oct 23, ►Except for some existing concession agreements, gas royalties in production perimeters increased by 1.5 ppts starting
Slide 9: 02 Robust Position in Romania and CEE
02 ROBUST POSITION IN ROMANIA AND CEE 9
Slide 10: ROMGAZ business segments
ROMGAZ business segments Gas Exploration, Production & Supply Underground Gas Storage Electricity Production Other activities • Romania’s largest producer and • 6% of Revenues and 6% in EBITDA in • Iernut plant operates at low • Support operations at Group level one of the largest suppliers 2024 cap
Slide 11: Exploration and production portfolio
Exploration and production portfolio ►Onshore Titleholder and operator in 121 petroleum agreements & co-titleholder non-operator in 13 petroleum agreements. ► Offshore 2 Petroleum agreements for offshore E&P in the Black Sea. ►2023: Strong Reserve Replacement Ratio of 97.3% ►Reserves independently a
Slide 12: Exploration and production portfolio: key projects and partnerships
Exploration and production portfolio ► Portfolio Developments in KEY PROJECTS and PARTNERSHIPS NEPTUN DEEP - Progressing in line with the plan ON-SHORE: CARAGELE DEEP: Largest onshore discovery in the past 30 years; Aug 2022: ROMGAZ acquired May 2024: Cut of First Steel Ongoing exploration to unlock
Slide 13: Neptun Deep - largest gas offshore project in the EU
Neptun Deep - largest gas offshore project in the EU ROMGAZ holds 50% in “Neptun Deep” Project ►Remaining 50% - owned by OMV Petrom, acting as the operator; Romania will become the largest gas producer in the EU ►ROMGAZ and OMV Petrom will invest up to EUR 4 billion (50% each, ROMGAZ; through its af
Slide 14: Natural gas production - onshore
Natural gas production - onshore ► Natural Gas Production Overview - Strong performance in 2024 Gas Production Evolution (bcm) +3.6% y/y +1.4% • Production was higher by 3.6% in 2024 vs the previous year: +8.9% Average daily production 13.6 million m 3 5.00 4.90 4.96 1.27 1.29 1.29 4.80 9 new wells
Slide 15: Gas supply & sales
Gas supply & sales ROMGAZ weight* in national gas consumption Gas sales Volumes (million m3) and Revenues (million RON) 58.2% 11,292 60% 1,853 1,909 45% 7,747 6,564 30% 49.4% 50.0% 1,404 47.9% 42.2% 15% 1,343 0% 4,741 4,525 4,571 2021 2022 2023 2024p 1,143 984 in total gas consumption in consumption
Slide 16: Underground gas storage
Underground gas storage Revenues from Storage (million RON) ► 91% market share within the gas storage business +3% 109 143 • Storage capacity is crucial for Romania and ROMGAZ, in terms of the country's energy security, economic growth and energy transition 127 80 (lately, at the end of the injectio
Slide 17: Electricity production & trading
Electricity production & trading ► New Iernut Power Plant – State-of-the Art Investment Existing (Old) Plant - Electricity production and revenues 1,331 ▪ Located in the middle of Romania’s electricity system, Iernut Power Plant is well positioned to strengthen energy security and operational effici
Slide 18: 03 Relevant Growth Opportunities
03 RELEVANT GROWTH OPPORTUNITIES 18
Slide 19: Romania: energy security provider as ROMGAZ positioned among leaders
Romania: energy security provider as ROMGAZ positioned among leaders ROMANIA: 2nd Gas Consumer in CEE1 (2023, million m3 / day) 2023 Gas Production2 (million m3 / day) 53.8 25.5 20.0 22.7 18.0 17.0 13.1 11.3 9.4 5.7 6.4 1.9 Poland Romania Hungary Czech Republic Slovakia Bulgaria Natural Gas Prices o
Slide 20: Romania: Energy transition expected to reverse gas consumption evolution
Romania: Energy transition expected to reverse gas consumption evolution Total Natural Gas Consumption* (million MWh) Mix of Energy Resources (2024) 130 Domestic production Imports 32 Coal/gas-fired plants 98 28 17 19 21% 26% Hydroplants Nuclear plants 65 Other renewables 98 22% 81 85 87 15% Imports
Slide 21: Growth strategy pillars
Growth strategy pillars Further develop existing portfolio allowing transition and mitigating climate change effects • Grow production through new off-shore gas blocks in the Black Sea • Maximize the recovery factor of existing production +10 production wells in Neptun Deep • Strengthen efficiency a
Slide 22: 04 Financial Performance, CAPEX, Dividends
04 FINANCIAL PERFORMANCE, CAPEX, DIVIDENDS 22
Slide 23: Robust profitability margins
Robust profitability margins ► Significant profitability rates despite volatility in gas prices and strong regulations ROMGAZ Group: EBITDA by Segments (million RON) ▪ Revenue generation is driven by the evolution of gas prices, which were subject to regulations imposed by GEO No. 27/2022 as amended
Slide 24: Strong cash generation, Dividend distribution
Strong cash generation, Dividend distribution Cash Flows (million RON) 3,700 Dividends (million RON) and dividend payout ratio (%) (for the previous year) 2,700 76.5% * Payout ratios computed as: 1,700 Total Gross Dividends / annual 1500 52.1% unconsolidated Net Profit 700 1,465 Dividends Payout rat
Slide 25: Capital expenditures mainly driven by Neptun Deep development
Capital expenditures mainly driven by Neptun Deep development Capital expenditures (million RON) ► CAPEX driven by Neptun Deep ▪ 2024 developments: CAPEX 5,627 2024 3.2 Billion RON 3,167 Neptun Deep 2.2 Billion RON ROMGAZ - 936 million RON 1,214 Depogaz - 55 million RON 2022 2023 2024p o Exploration
Slide 26: Financial Performance
Financial Performance Q4 Q4 Summary 2024p (vs 2023) ROMGAZ Group: P&L (Million RON) 2021 2022 2023 2024p %ch %ch 2023 2024p Revenues - total 7,929 million RON ( 12%) Revenues - of which 5,853 13,360 9,002 7,929 -11.9% 2,192 2,300 4.9% EBITDA 4,089 million RON ( 24%) Gas Production 4,713 11,292 7,747
Slide 27: Financial Performance
Financial Performance Dec 31, Dec 31, Dec 31, Dec 31, ▪ End-December 2024: total cash of RON 4,477 million (cash, ROMGAZ Group: Balace Sheet (Million RON) 2021 2022 2023 2024p bank depos and government’s treasury bonds); Total non-current assets, thereof 5,565 10,422 11,403 14,034 Tangible assets 5,
Slide 28: 05 ESG Mindset to Enhance Efficiency
05 ESG MINDSET TO ENHANCE EFFICIENCY 28
Slide 29: ROMGAZ strategy 2021-2030: Net zero CO2 emissions by 2050
ROMGAZ strategy 2021-2030 Net zero CO2 emissions by 2050 ! Minimum 10% reduction of carbon, methane and other gas emissions by 2030 Annual natural gas output decline below 2.5% Electricity and energy with low Digital transformation of the Develop the portfolio of CO2 emissions with large scale compa
Slide 30: ROMGAZ strategy 2021-2030: gas resources portfolio
ROMGAZ strategy 2021-2030 Continue to develop the gas resources portfolio → Focused on mitigating climate changes effects, resilient hydrocarbons, operational safety and reliability Currently: Exploration-development-production activities in 16 Reservoirs cover 63.5% gas fields under concession Targ
Slide 31: ROMGAZ Strategy 2021-2030: Sustainable Energy and Business Diversification
ROMGAZ Strategy 2021-2030 Sustainable Energy / Commercial Portfolio and Business Diversification Electricity and Energy with Low CO2 Emissions ➢ Production of photovoltaic energy – Implementation of renewable energy production projects with a total capacity of 180 MW by 2030; One solar park project
Slide 32: Decarbonization Policy / Digital Transformation / Social Responsibility
ROMGAZ Strategy 2021-2030 Decarbonization Policy / Digital Transformation / Social Responsibility Decarbonization Policy Min 10% reduction of carbon, methane & other gas emissions by 2030 (10-10-10, vs 2020) ➢ Implement a Nox emissions management system ➢ Electrically-driven drilling rigs, use of fl
Slide 33: 06 Experienced Management
06 EXPERIENCED MANAGEMENT 33
Slide 34: Management team
Management team ROMGAZ is led by an experienced team of professionals. The Group employs over 5,900 people. More than 90% of its operational team has been with ROMGAZ for more than 15 years. As a result of this experience, ROMGAZ Group has developed extensive expertise in conventional natural gas pr
Slide 35: 07 Blue Chip on the BVB
07 BLUE CHIP ON THE BVB 35
Slide 36: Shareholding Structure and Stock Performance
Shareholding Structure and Stock Performance 12-Month: Share Price Performance on the BVB Period Min (RON) Max (RON) Q1/24 4.96 5.58 Romanian Other State shareholders 70% Q2/24 5.10 6.13 30% Q3/24 4.32 6.13 Q4/24 5.00 5.60 12M Total Traded Value (Q1 2024 – Q4 2024): 762 million RON or 0.6 million EU
Slide 37: Financial Calendar 2025 / Thank you
Financial Calendar 2025 Feb 28: Release of 2024 Preliminary Financial Results Feb 28: Conference call with financial analysts and investors April 29: SGM for approval of 2024 Financial Results April 30: Release of 2024 Annual Financial Results May 15: Release of Q1 2025 Financial Results May 16: Con