Romgaz H1 2026 slides: record margins offset revenue decline

Romanian natural gas company ROMGAZ released its first-half 2026 financial results on August 14, 2026, demonstrating strong profitability despite a year-over-year decline in revenue. The company reported a record net profit margin of 44.7% in the second quarter, which grew to 43.7% for the year-to-date period. Net profit for H1 2026 increased 3.4% year-over-year to RON 1.736 billion.

Gas production revenues fell 3.4% year-over-year to 2.4 billion cubic meters as volumes declined while the company produced 1% above its budget. Total revenues dropped 8.6% year-over-year to RON 3,883 million due to lower gas sales volumes and reduced regulated gas prices. Despite the revenue decline, ROMGAZ maintained strong profitability driven by disciplined cost management and favorable tax dynamics.

The company's upstream gas segment, which generated 89% of revenues and over 100% of EBITDA, is its core business, operating 3,000 wells across 121 petroleum agreements. Underground gas storage contributed 7% of revenues and 7% of EBITDA, with ROMGAZ holding over 90% market share. The electricity production segment, responsible for 4% of revenues, currently operates at a negative EBITDA due to the lower capacity operation of the Iernut plant.

ROMGAZ's strategic asset portfolio includes the Caragele Deep field, the largest onshore discovery in 30 years, which is a key contributor to production. The company's long-term resource base provides the foundation for its market leadership, with a Reserve Replacement Ratio of 59.8% for 2025. ROMGAZ's most significant growth catalyst, the Neptun Deep offshore project, is expected to transform Romania into the EU's largest gas producer.

The project, a 50/50 joint venture with OMV Petrom, reached a milestone in July 2026 with the installation of the Neptun Alpha offshore production platform.