Romgaz expects $1bn revenues

Gas producer Romgaz Medias, one of the few profitable state-owned companies has budgeted an 879.9 million euro (1.03 billion dollar) turnover for this year, 60% more than in 2005. Growth of the Romgaz business is still based on the increase in price of gases and the growing volume of stocks in subterranean storage facilities. “We are counting on an increase in the storage activity, as well on the effects of tariffs going up,” Lucia Ionascu, financial manager of Romgaz Medias, one of the biggest companies in Romania, told ZF. The recent gas crisis in January, which practically forced the two local gas producers, Romgaz and Petrom, to increase the amounts of gas delivered to the population, has also had a positive effect on their business. The significant rise in the gas price over the last two years, due to Romania”s rallying to European standards, has turned Romgaz into an increasingly attractive business, with the gas producer currently being one of the most profitable companies in the state”s portfolio. ZF